Bellevue Obesity Solutions (Lux)
Obesity pandemic: unprecedented in scale, high unmet healthcare needs
Medical innovations (e.g. GLP-1 drugs) and public programs are raising awareness
Portfolio: «Best Ideas» across the entire value chain
Explained in 90 seconds
Please find a more detailed description of share classes here.
The fund’s aim is to achieve capital growth in the long term and invests worldwide in listed companies focused on the prevention and treatment of severe overweight or obesity and its accompanying diseases. Experienced industry experts invest in companies in three areas: diagnostics and treatment, comorbidities as well as nutrition and physical activity – providing investors access to the entire obesity value chain. Stock selection is based on fundamental company analysis and is bottom-up, independent of benchmark weightings. The fund takes ESG factors into consideration while implementing its investment objectives.
Indexed performance (as at: 26.02.2024)
NAV: CHF 396.15 (23.02.2024)
Cumulative performance (23.02.2024)
Facts & Key figures
The fund’s aim is to achieve capital growth in the long term and invests worldwide in listed companies focused on the prevention and treatment of severe overweight or obesity and its accompanying diseases. Experienced industry experts invest in companies in three areas: diagnostics and treatment, comorbidities as well as nutrition and physical activity – providing investors access to the entire obesity value chain. Stock selection is based on fundamental company analysis and is bottom-up, independent of benchmark weightings. The fund takes ESG factors into consideration while implementing its investment objectives. Show moreShow less
Investment suitability & Risk
|Bellevue Asset Management AG
|CACEIS Investor Services Bank, Luxembourg
|CACEIS Investor Services Bank, Luxembourg
|Year end closing
|Daily "Forward Pricing"
|Cut of time
|Subscription Fee (max.)
|Total expense ratio (TER)
|Luxembourg UCITS V SICAV
Top 10 positions
Breakdown by sector
Benefits & Risks
- The increasing prevalence of obesity, the numerous associated comorbidities and subsequent medical conditions, and its huge direct and indirect economic burden make obesity very attractive from an investment perspective.
- This mega trend has gained a very visible profile thanks to medical progress (e.g. GLP-1 agonists), high social interest and public campaigns.
- Companies active in this field have above-average growth potential for the above reasons.
- Access to innovative companies across the entire value chain, in nutrition and physical activity-related markets, obesity diagnostics and treatment, and in the treatment of the comorbidities and subsequent medical conditions.
- Bellevue – a pioneer in healthcare investing since 1993 and now one of the largest independent investors in the healthcare space in Europe.
- The fund invests in equities. Stocks are subject to price fluctuations, so there is a risk of falling prices.
- The investments the fund makes may be denominated in foreign currency, which can entail a foreign-exchange risk relative to the fund's base currency.
- The fund may invest some of its assets in financial instruments that may have relatively low levels of liquidity under certain circumstances, which may then affect the liquidity of the fund’s own shares.
- There are additional risks in the form of political and social unrest when investing in emerging markets.
- The fund may use derivatives. Derivatives offer greater upside potential yet also carry greater downside risk.
Review / Outlook
The dominant themes on the macro front were robust data on the US economy and central banks – which poured cold water on market expectations that interest rate cuts were just around the corner. As is tradition, the healthcare sector kicked off the year with the J.P. Morgan Healthcare Conference in San Francisco, where the mood was definitely more upbeat than last year, having been buoyed by positive preliminary company earnings announcements and optimistic statements from company boardrooms. Right as the conference began, several takeover agreements were announced, such as Boston Scientific’s acquisition of Axonics for USD 3.3 bn. There was also M&A activity in the biotechnology sector, where JNJ bought Ambrx Biopharma for USD 1.5 bn, GSK bought Aiolos Bio in a deal worth up to USD 1.4 bn, and Merck swallowed up Harpoon Therapeutics for USD 380 mn. The reporting season for major pharmaceutical and medtech companies got under way towards the end of the month and so far there have been no major surprises.
The following stocks made the best contributions to the fund's performance in January: Unbroken interest in the obesity theme within the healthcare sector led Zealand Pharma shares sharply higher. Novo Nordisk shares were marked up on positive sentiment regarding the current reporting season and on signs of a stabilization in the production and supply of Wegovy. Cencora beat consensus earnings expectations and reported a strong performance at its US business, where GLP-1 drugs lifted its sales by 3% or USD 2.2 bn. Amgen made a convincing impression on analysts during a presentation of its therapies in the obesity space, which could have a distinctive profile compared to current treatments from Novo Nordisk and Eli Lilly, as Amgen is developing an innovative combination of an GIP receptor antagonist antibody and a GLP-1 receptor agonist with a once-monthly or quarterly dosing.
The following stocks detracted from fund performance: Innovent, a Chinese biotech company, came under pressure after a bill targeting Chinese companies was introduced in the US Congress, backed by a bipartisan group of politicians and consultants who claim the country’s biotech industry is a threat to US national security and should be prohibited from doing business in the US market. Weight Watchers International headed south after Eli Lilly launched a digital platform for obesity medications. Scholar Rock retreated in the wake of its strong performance during the previous month.
The companies in the fund's portfolio are working on technologies or products for novel treatment solutions and holistic treatment approaches. Selected healthcare companies with relevant exposure to the obesity care market can also be found in the portfolio, and up to 20% of the fund's assets can be invested in fitness and nutrition companies that have a strong growth profile and a modest valuation. The Bellevue Obesity Solutions (Lux) Fund is well-positioned to profit from the milestones likely to be reached in 2024. Policy frameworks are supportive of solutions that will help to alleviate the obesity crisis. Besides trial readouts and attractive valuation metrics, M&A activity, especially in the drug discovery and development space, will be a relevant factor going forward.
Past performance is not a reliable indicator of future results and can be misleading. As the sub-fund is denominated in a currency that may differ than an investor’s base currency, changes in the rate of exchange may have an adverse effect on prices and incomes. Performance is shown net of fees and expenses for the relevant share class over the reference period. All performance figures reflect the reinvestment of dividends and do not take into account the commissions and costs incurred on the issue and redemption of shares, if any. Individual costs are not taken into account and would have a negative impact on the performance. With an investment amount of EUR 1000 over an investment period of five years, the investment result in the first year would be reduced by the front-end load of up to EUR 50 (5%) as well as by additional individual custody charges. In subsequent years, the investment result would also be reduced by the individual custody account costs incurred. The reference benchmark of this class is used for performance comparison purposes only (dividend reinvested). No benchmark is directly identical to a sub-fund, thus the performance of a benchmark is not a reliable indicator of future performance of the sub-fund it is compared to. There can be no assurance that a return will be achieved or that a substantial loss of capital will not be incurred. All figures in base currency in %, calculated by the total return / BVI method.Show moreShow less