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. LU2719280096
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: 10.05.2024)
NAV: CHF 142.50 (08.05.2024)
Cumulative performance (08.05.2024)
I2-CHF | Benchmark | |
1M | 1.22% | 0.53% |
YTD | 15.20% | 13.12% |
1 year | n.a. | n.a. |
Since Inception | 14.00% | 13.30% |
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 | LU2719280096 |
Valor number | 130980379 |
Bloomberg | BBBII2C LX |
WKN | A3E13L |
Total expense ratio (TER) | 1.32% (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
Solid economic data put investors in good spirits; reported upturns in commodity prices and labor costs were only minor disturbances. Central banks continued to flag interest rate cuts at some point this year. In the healthcare sector, news flow was mostly positive and more acquisition deals were announced. Novo Nordisk published more positive clinical trial data for semaglutide. The company stopped its FLOW trial in diabetes patients (T2D) with kidney problems (CKD) early due to efficacy. Treatment with semaglutide reduced the risk of kidney-disease progression and the risk of death from heart or kidney failure by 24%. Novo also announced that the FDA approved a label expansion for the drug for the indication of reducing risks of major adverse cardiovascular events (MACE). According to some forecasts, GLP-1 drugs will be the best-selling class of drugs in 2024, overtaking the class of PD-L1 checkpoint antibodies in cancer immunotherapy.
The following stocks made the best contributions to portfolio performance in March: At its Capital Markets Day 2024, Novo Nordisk drew attention to the tremendous growth potential of its GLP-1 franchise in the areas of diabetes and obesity. Particular emphasis was placed on the promising profile of its amycretin pill, which led to a 13% reduction in body weight after 12 weeks of treatment. If efficacy is confirmed, amycretin could become a leading oral product in the obesity market. Dexcom received regulatory approval for Stelo, the first over-the-counter integrated continuous glucose monitoring system (iCGM) for adults not on insulin. In addition, a verdict from a district court in Delaware in a patent dispute with Abbott was relatively mild for Dexcom, and Dexcom was not held liable for damages, which investors viewed as a victory for now in the still ongoing dispute. Shockwave shares surged after an article appeared in the Wall Street Journal claiming that Johnson & Johnson was in talks to acquire the company.
The following stocks detracted from fund performance: Biotech companies Crispr Therapeutics and Verve drifted lower during the past month without any company-specific triggers. Both companies are focused on gene therapies and suffered above-average losses compared to the overall biotech sector. Lululemon corrected on news of slower growth in the fourth quarter and a downward revision of management guidance for the first quarter.
We expect positive catalysts for our investment strategy during the current year. 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 interest in the high-quality investment opportunities that the healthcare sector offers. 2024 promises to be an exciting year in obesity therapeutics with several significant trial readouts on the agenda. Early in the year, we are expecting initial data readouts from Phase I trials of amylin analogs from both Zealand Pharma and Novo Nordisk. Viking and Structure Therapeutics will publish new data from their trials of oral GLP-1 drugs around the same time. Updates on experimental treatments that preserve muscle mass are also anticipated, for instance from Roche, Regeneron or Scholar Rock to name a few. In view of current demand, which far exceeds available supply, an increase in production is crucial for the GLP-1 market, which is currently dominated by Eli Lilly and Novo Nordisk. 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 and/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