Bellevue Biotech (CH)
Biotech sector with sustainable, strong sales and earnings growth thanks to high innovation level
Expiring patents of pharma companies lead to high M&A activity (patent cliff)
Valuations very attractive on historical average over the last 10 years
Please find a more detailed description of share classes here.
Investment Focus
ISIN-No. CH0113817123
The Bellevue Biotech fund focuses on the most promising companies in the biotechnology sector. The fund invests in 30 to 50 stocks that have met all of the stringent selection criteria applied by us.
Indexed performance (as at: 02.10.2023)
NAV: CHF 3'342.80 (28.09.2023)
Rolling performance (30.09.2023)
DT-CHF | Benchmark | |
30.09.2022 - 30.09.2023 | -7.78% | -2.45% |
30.09.2021 - 30.09.2022 | -17.23% | -21.97% |
30.09.2020 - 30.09.2021 | 19.92% | 21.11% |
30.09.2019 - 30.09.2020 | 24.17% | 25.66% |
Annualized performance (30.09.2023)
DT-CHF | Benchmark | |
1 year | -7.78% | -2.45% |
3 years | -2.91% | -2.68% |
5 years | -0.70% | -0.70% |
10 years | 4.81% | 6.20% |
Since Inception p.a. | 9.67% | 11.47% |
Cumulative performance (30.09.2023)
DT-CHF | Benchmark | |
1M | -0.89% | -0.82% |
YTD | -9.96% | -6.91% |
1 year | -7.78% | -2.45% |
3 years | -8.47% | -7.82% |
5 years | -3.46% | -3.44% |
10 years | 59.93% | 82.64% |
Since Inception | 231.03% | 308.99% |
Annual performance
DT-CHF | Benchmark | |
2022 | -9.83% | -9.88% |
2021 | 5.02% | 2.31% |
2020 | 14.04% | 15.12% |
2019 | 26.60% | 22.33% |
Facts & Key figures
Investment Focus
The Bellevue Biotech fund focuses on the most promising companies in the biotechnology sector. The fund invests in 30 to 50 stocks that have met all of the stringent selection criteria applied by us. These are biotech companies that have specialized in areas such as immunology, virology, neurology, oncology, Show moreShow less
Investment suitability & Risk
Low risk
High risk
General Information
Investment Manager | Bellevue Asset Management AG |
Custodian | Zürcher Kantonalbank |
Fund Administrator | Swisscanto Fondsleitung AG |
Auditor | Ernst & Young AG |
Launch date | 15.10.2010 |
Year end closing | 30. Sep |
NAV Calculation | Daily "Forward Pricing" |
Cut of time | 15:00 CET |
Management Fee | 1.20% |
Subscription Fee (max.) | 2.50% |
Performance Fee | 10.00% (with High Water Mark) |
ISIN number | CH0113817123 |
Valor number | 11381712 |
Bloomberg | ADGLBII SW |
WKN | A1H8PS |
Legal Information
Legal form | Investment funds under Swiss law |
SFDR category | Article 8 |
Redemption period | Daily |
Key data (31.07.2023, base currency CHF)
Beta | 0.88 |
Volatility | 22.50 |
Tracking error | 6.49 |
Active share | 37.35 |
Correlation | 0.97 |
Sharpe ratio | -0.01 |
Information ratio | -0.28 |
Jensen's alpha | -1.68 |
No. of positions | 54 |
Portfolio
Top 10 positions
Market capitalization
Geographic breakdown
Breakdown by sector
Benefits & Risks
Benefits
- New innovative drugs are powering sustainable momentum in the biotech sector.
- Attractively valued large cap biotechs.
- Expiring pharmaceutical patents trigger a rise in M&A activity.
- Focus on US biotech companies with strong growth potential.
- Bellevue Healthcare team – top-performing pioneer in the management of healthcare portfolios.
Risks
- The fund invests in equities. Equities are subject to strong price fluctuations and so are also exposed to the risk of price losses.
- Biotech equities can be subject to sudden substantial price movements owing to market, sector or company factors.
- The fund invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
- Investing in emerging markets entails the additional risk of political and social instability.
- The fund may invest a proportion of its assets in financial instruments that might under certain circumstances have a relatively low level of liquidity, which can in turn affect the fund’s liquidity.
Review / Outlook
Market sentiment remained positive in July, supported by reports of easing inflationary pressure in developed countries and robust economic data. A key factor for the market’s moves was the June inflation data for the US that was published in mid-July. It revealed a bigger-than-expected drop in headline inflation to 3% year-on-year (from 4% in the previous month), while core inflation was almost unchanged at 4.8% year-on-year. Confidence in the biotech sector was buoyed by long-awaited news from two Phase III studies. The Dutch company Argenx was able to reach an important milestone with its Vyvgart drug administered by subcutaneous injection. The drug demonstrated impressive efficacy in patients with chronic inflammatory demyelinating polyneuropathy (CIDP), a rare autoimmune disease of the peripheral nervous system for which there had previously been no truly satisfactory treatment options. Good Phase III data was also published by BridgeBio. Expectations regarding the ongoing study of acoramidis in patients with rare heart disease had been rather low, so it was all the more pleasing to see that more than four out of five patients treated with the drug were still alive after 30 months, along with a significant relative risk reduction of 50% in the frequency of cardiovascular-related hospitalizations.
The following companies made the best contribution to the portfolio's performance in July: BridgeBio published positive Phase III data from its ongoing study of acoramidis, an investigational new drug for the treatment of patients with transthyretin amyloid cardiomyopathy. The study results were highly statistically significant and showed an improvement in overall mortality and cardiovascular-related hospitalizations among the trial patients compared to the placebo group. Argenx also gained after the company reported positive data from a Phase III study of Vyvgart in patients with a rare neuromuscular disease. Reata's shares jumped on news that Biogen had offered a premium of 60% to take over the company.
The following stocks detracted from portfolio performance: Apellis Pharmaceuticals plunged on news that its approved drug Syfovre for the treatment of an advanced form of eye disease (geographic atrophy) had been associated with rare but severe side effects. Sage Therapeutics came under selling pressure due to waning confidence that the FDA would give its antidepressant Zuranolone a broad label. The agency is expected to announce its decision on August 5.
We reduced our exposure to Viking Therapeutics, Illumina and other companies and invested the proceeds in Reata and Dynavax, among other companies.
Our stance towards the biotech sector remains positive in view of its strong fundamentals and enticing valuations (average 2024 P/E of 14x and PEG of 1.1 for large caps). These are still very attractive multiples compared to the biotech sector's historical valuations and the current ratios for the pharma sector (P/E 18x, PEG 2.3) and the S&P Index (P/E 19x, PEG 2.5).
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