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.
Investment Focus
ISIN-No. LU2719279916
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: 13.05.2024)
NAV: USD 136.47 (08.05.2024)
Cumulative performance (08.05.2024)
I2-USD | Benchmark | |
1M | 0.88% | 0.25% |
YTD | 6.78% | 4.54% |
1 year | n.a. | n.a. |
Since Inception | 9.18% | 9.16% |
Facts & Key figures
Investment Focus
The fund’s aim is to achieve capital growth in the long term and actively 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, Show moreShow less
Investment suitability & Risk
Low risk
High risk
General Information
Investment Manager | Bellevue Asset Management AG |
Custodian | CACEIS Investor Services Bank, Luxembourg |
Fund Administrator | CACEIS Investor Services Bank, Luxembourg |
Auditor | PriceWaterhouseCoopers |
Launch date | 30.11.2023 |
Year end closing | 30. Jun |
NAV Calculation | Daily "Forward Pricing" |
Cut of time | 15:00 CET |
Management Fee | 0.80% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU2719279916 |
Valor number | 130980372 |
Bloomberg | BBBII2U LX |
WKN | A3E13K |
Total expense ratio (TER) | 1.31% (30.04.2024) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Portfolio
Top 10 positions
Market capitalization
Geographic breakdown
Breakdown by sector
Benefits & Risks
Benefits
- 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.
Risks
- The fund actively 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
April was a difficult month for both stocks and bonds. A combination of high US inflation and weak US GDP data for the first quarter, which, on closer inspection, revealed that consumer spending was still holding up strong, fanned market fears that central banks would not loosen monetary policy anytime soon. In the healthcare sector, the impact of the shifting interest rate landscape hit rate-sensitive areas such as small-cap stocks the hardest, as evidenced by the Biotech XBI’s sharp decline. Eli Lilly, a stock in the fund's portfolio, reported its first-quarter financial results and gave an encouraging update on its pipeline progress. Demand for GLP-1 drugs remains high in the face of limited supply. Manufacturers, including Novo, are ramping up production and distribution capacity and are optimistic that sales volumes will quickly increase. GLP-1 drugs are effective in both diabetes and obesity and have shown promise in other diseases as well. Eli Lilly's studies of Zepbound (tirzepatide) recently demonstrated that the drug can help patients overcome obstructive sleep apnea (OSA), a common condition that affects 20 million people in the US alone and interrupts their sleep.
The following stocks made the best contributions to portfolio performance in April: Boston Scientific presented impressive quarterly results and raised its annual guidance. Organic sales rose a better-than-expected 13% thanks to solid growth across its Cardiovascular and MedSurg segments. Novo Nordisk shares edged higher during the month under review, driven by positive market data on GLP-1 prescriptions and the strong sales reported by competitor Eli Lilly. Adidas also displayed strength after publishing its preliminary results for the first quarter of 2024 and raising its full-year guidance. The company is well on track to achieve double-digit sales growth in fiscal 2024.
The following stocks detracted from fund performance: Verve Therapeutics gave up ground due to renewed concerns about the safety of one of its clinical trials. The company announced that it was temporarily halting patient enrollment in its Phase Ib clinical trial of VERVE-101 due to the lab test abnormalities observed in one of the six patients treated with the investigational drug. Abbott reported strong first-quarter results and raised its full-year guidance, but steady news flow about lawsuits against baby formula manufacturers in the US weighed on its stock. Zealand Pharma shares traded lower in April, but without any significant news or updates.
We expect 2024 to be a positive year for our investment strategy. Supportive factors include anticipated interest rate cuts in the US, which would favor growth stocks in particular, attractive stock valuations with price-to-sales multiples approaching historical lows (especially in the biotech sector), forecasts of continued high M&A activity, and growing investor interest in the healthcare sector. 2024 promises to be an exciting year in obesity therapeutics with several significant trial readouts on the agenda. Zealand Pharma is expected to publish initial data from a Phase I trial of its amylin analog by the end of the first half. Structure Therapeutics will also present new data from a Phase II trial of its oral GLP-1 drug candidate. Updates on experimental treatments that preserve muscle mass are also anticipated, for instance from Eli Lilly, Regeneron and Scholar Rock to name a few. There will also be important readouts from Zealand and Eli Lilly, both portfolio companies, at the International Liver Conference in early June organized by European Association for the Study of the Liver (EASL). In view of the current levels of demand in the GLP-1 market, which far exceed available supply, an increase in production capacity is crucial. We are also closely monitoring whether this class of therapeutics could be approved for the treatment of other diseases such as cardiovascular disorders, obstructive sleep apnea or chronic kidney disease.
Documents
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. Show moreShow less