Aescap Genetics Fund
Investing in highly Disruptive Genetics Medicines
The Aescap Genetics Fund was launched in January 2022. This open-end fund invests in biotech companies which develop and market next generation medical treatments. It is a niche fund that invests exclusively in the fast-growing market of RNA, gene and cell therapy medicines. The advantage of Genetics medicines is their ability to treat diseases at their root cause. Around 90 medicines based on such technologies have already come to the market. Many of them can treat diseases for which no medicines were available yet.
The biotech market is a large and fast-growing market. This is driven by:
- Ageing population.
- Increased demand for ‘Western’ medicine in the emerging markets.
- Growing pressure on healthcare (costs and staff) which can be reduced by new medicines.
The Genetics Fund is managed by an investment team with over 30 years experience and an excellent track record. The fund has an average annual net performance target of 20% over the mid-term (4-5 years).
An investment in the fund will not only allow for a good return on investment. It also enables the development of better treatments for diseases with a high unmet medical need such as ALS, Alzheimer’s, Arthritis, Cancer, MS, Obesity, Parkinson’s and many others.
Investing in the Genetics Winners
There are more than 125 public Genetics companies that so far launched around 90 Genetics medicines. Over 2.000 medicines are currently in clinical tests. 200 of them are in final stage. These numbers are growing rapidly. In our balanced portfolio with around 20 companies, we diversify over different diseases, development phases and geographies. We select companies for their growth potential (‘future earning power’), strong pipeline and limited risk (technological and financial).
In our stock picking we prefer companies that already have products on the market and several medicines in clinical trials.
We also value companies with a technology platform that can be used to develop medicines treating a variety of diseases. These companies develop their own medicines but also offer their technology platform for use by others that are developing medicines for diseases in which the company itself has no interest in. This can result in significant milestone and royalty payments, so extra revenues.
Why Aescap?
Aescap has been investing successfully in the Genetics field since 2016. Our Genetics Fund is the first European fund investing in highly interesting public Genetics companies. The investment team, led by Portfolio Manager Patrick Krol, consists of very experienced professionals with different backgrounds in investing and the healthcare industry.
Aescap’s objective is to maximize returns for our investors by selecting the biotech companies that develop the medicines of the future, without taking major risks. By doing this, we facilitate the development of medications for illnesses for which there are currently no effective treatments.
We are transparent, accessible and committed. Our team members invest in the Aescap funds themselves, with over € 25 million. Our Portfolio Manager and head of investor relations can be reached for any questions you may have. You can find our contact details here.
Investment strategy – focus & discipline
The Aescap Genetics Fund is actively managed and doesn’t use a benchmark index. The investment team selects companies based on ‘high conviction’: extensive fundamental analyses combined with intense interaction with management and relevant experts like doctors, scientists and of course patients.
Stock selection, constant monitoring of companies and an active buy and sell discipline are what drive the fund’s performance. Biotech stocks are known for their low correlation and high volatility, caused by media, macro-events and short-term speculative investors. This creates an ideal setting for a high conviction fund manager to invest in undervalued companies with a great mid- and long-term earning power. More about our investment strategy.
RNA, gene and cell therapy
RNA, gene, and cell therapies are genetics medicines. These innovative therapies treat the cause of diseases caused by:
- mutations found in genes from birth or,
- mutations caused by factors such as the sun, air pollution, alcohol, etc.
Traditional medicines can sometimes treat the symptoms of these diseases but are not able to remove the cause. In contrast, genetic medicines can treat the underlying cause. These medications have not only enabled the development of improved therapies but have also produced treatments for conditions for which there is currently no medication. The articles below give more insight into these 3 technologies
ESG
Since its inception, the Aescap investment team has taken Environmental, Social and Governance (ESG) factors into consideration when analyzing the outside in and inside out facets of its portfolio companies and potential new investments. By continuously doing so, we aim to encourage companies in our sector to act with the well-being of people and our planet in mind. The Aescap Funds focus their investments on companies developing treatments that are aimed to significantly improve the life of patients and benefit society as a whole.
In March 2021 the EU introduced The Sustainable Finance Disclosure Regulation (SFDR). The SFDR aims to improve disclosure to end investors, on the sustainability impacts of investment policies and decisions by financial market participants. In doing so, a number of regimes are distinguished. The Aescap funds are so-called Article 8 funds. Here, a social characteristic is promoted. When selecting companies, particular attention is paid to those that contribute to solving a high unmet medical need.
More information on sustainability/ESG.
How to invest in the Aescap Genetics Fund
Would you like to benefit from what is also seen by doctors and scientists as ‘the next big thing’ in medicines? We’re looking forward to providing you with all necessary information. By phone, via e-mail or in person. You are very welcome to visit our office and meet the Portfolio Manager and Analysts. Please find our contact details here.
The minimum amount to invest in Aescap Genetics is € 100.000. For asset managers the minimum amount per deposit should be € 10.000 (this can be divided among several investors). Investors can enter and/or exit the fund on a weekly basis. More information on how to make initial subscriptions
As requested by several of our investors we created the NextGen program. This enables first- and second-degree family members of current investors to enter the Aescap funds with a minimum investment amount of €10.000 each.
ISIN Code Aescap Genetics: NL0015000PS9
Bloomberg: AESCGEI NA Equity
Risks
To minimise investment risks, the fund spreads its portfolio across diverse diseases, various stages of company development and different geographical areas. The fund identifies a number of risks for investors:
- Liquidity risk: a position taken by an investor may not be able to be liquidated in a timely manner at a reasonable price due to lack of liquidity (insufficient demand) in the market.
- Sector risk: the fund invests in a sector characterised by high volatility where an active investment approach is very important. This can have a positive or negative impact on the value of the fund.
- Currency risk: in principle, the fund does not hedge currency positions. Investments other than in euro may therefore cause fluctuations in the net asset value of the fund, both positive and negative.
Please check the prospectus for an overview of identified risks.
