Bellevue Biotech (Lux)
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.
The Fund invests worldwide in companies active in the biotechnology sector. Experienced sector specialists focus on profitable mid- and large-cap companies with an established product portfolio. Stock selection is based on fundamental analysis. The selection of portfolio companies is entirely bottom-up, independent of benchmark weightings.
Indexed performance (as at: 20.05.2022)
NAV: USD 483.85 (19.05.2022)
Rolling performance (19.05.2022)
|19.05.2021 - 19.05.2022||-18.92%||-21.72%|
|19.05.2020 - 19.05.2021||15.91%||13.68%|
|17.05.2019 - 19.05.2020||22.44%||26.33%|
|18.05.2018 - 17.05.2019||-6.80%||-3.79%|
Annualized performance (19.05.2022)
|Since Inception p.a.||10.85%||13.63%|
Cumulative performance (19.05.2022)
Facts & Key figures
The Fund invests worldwide in companies active in the biotechnology sector. Experienced sector specialists focus on profitable mid- and large-cap companies with an established product portfolio. Stock selection is based on fundamental analysis, in particular of the medical indications addressed, the means of efficacy and the market potential. A global network of experts spanning scientific and industrial fields supports the Management Team in forming opinions and making investment decisions. The selection of portfolio companies is entirely bottom-up, independent of benchmark weightings.Show moreShow less
Investment suitability & Risk
|Investment Manager||Bellevue Asset Management AG|
|Custodian||RBC Investor Services, Luxembourg|
|Fund Administrator||RBC Investor Services, Luxembourg|
|Year end closing||30. Jun|
|NAV Calculation||Daily "Forward Pricing"|
|Cut of time||15:00 CET|
|Subscription Fee (max.)||5.00%|
|Total expense ratio (TER)||2.21% (29.04.2022)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (29.04.2022, base currency USD)
|No. of positions||55|
Top 10 positions
Breakdown by sector
Opportunities & Risks
- 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 has been a Healthcare pioneer since 1993 and is one of the biggest independent investors in the sector in Europe today.
- Equities are subject to strong price fluctuations and so are also exposed to the risk of price losses.
- Market, industry or company factors can lead to strong short-term price fluctuations
- 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 in financial instruments that might have a rather low level of liquidity, which can in turn affect the fund’s liquidity.
Review / Outlook
Stock markets were very weak in April. The S&P 500 dropped 8.7%, the Nasdaq Biotech Index 9.7% and the Bellevue Biotech (Lux) Fund 8.2% (USD / B shares).
Tighter US monetary policy, no end in sight to the war in Ukraine, and the ultra strict anti-COVID policy in China weighed on investor sentiment during the past month. The US central bank is now expected to increase its overnight lending rate in 50 bp increments at each of its next three policy meetings in its effort to rein in inflation. Europe meanwhile is grappling with the repercussions of the Ukraine war rippling through its energy markets and working on solutions for ending its dependency on Russian fossil fuels. In positive news, unemployment in the Euro area dropped to a record low. The currently attractive valuations in the biotech sector have not yet triggered a wave of acquisitions as anticipated. Since many of the larger biopharma players will be confronted with patent expirations in the near future, it is only a matter of time before the first transaction is announced. Besides clinical trial news, takeover activity is a major market-moving driver for the biotech sector. ASCO, the world's largest oncology conference, will soon take place in Chicago. The latest clinical data on cellular therapies and immunotherapies that will be presented there is keenly awaited, following the recent publication of encouraging data.
Below is an overview of the portfolio's top performers in April: Genmab profited from strong sales of its monoclonal antibody Darzalex, which are initially published by its partner J&J. The drug has proven to be a key treatment for multiple myeloma, and it has been successfully administered in subcutaneous form for almost two years now. Cytokinetics rose on news of the approval of Bristol’s mavacamten for treating patients with hypertrophic obstructive cardiomyopathy. Mavacamten was originally developed by Cytokinetics, which is testing its own cardiac myosin inhibitor in Phase III trials. Ono Pharmaceutical was marked up on strong sales of its outlicensed oncology products and the related royalties.
Performance detractors were Bicycle Therapeutics, after it presented further data from a Phase I trial of its novel alternative to antibody drug conjugates for treating different tumors at the AACR conference. Despite initial indications of anti-tumor activity, some questions remained regarding the drug candidate’s safety. Shares of C4 Therapeutics were also weak after it presented data at the AACR.
Our stance towards the biotech sector remains positive in view of its strong fundamentals and very attractive valuations (average 2023 P/E of 13x and PEG of 1.5 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 16x, PEG 1.9) and the S&P Index (P/E 17x, PEG 1.5).
The companies in our portfolio are working on technologies or products for novel treatment solutions. We are also invested in selected specialty pharma companies that offer high growth rates and moderate valuations. The Bellevue Biotech (Lux) Fund is well-positioned to profit from the milestones that are expected to be reached in 2022. The regulatory environment favors the innovation coming out of biotech labs and the coronavirus crisis has improved the image of drug developers. In addition to the growing piles of cash that the larger biopharmaceutical companies are accumulating, we also believe low valuations and the attractive pipeline candidates of biotech companies in the small and mid cap space could trigger M&A activity 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 1,000 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