The fund invests globally in the biotechnology sector with focus on the US. The biotechnology sector is regarded as less sensitive to economic fluctuations than many other sectors, and the yield is dependent to a great deal on medical progress and scientific advances. Since the fund invests outside Sweden, the fund's asset value is affected by fluctuations of the Swedish krona in relation to other currencies. The fund has the possibility to use derivative instruments.
The fund is managed by QPM (Quantitative Portfolio Management). The team works primarily with quantitative and rule-based management. The team is based in Stockholm Sweden.
The fund only pursues exposure in liquid securities. A quantitative process forms the basis to distinguish and analyze biotechnology companies and identify those that have attractive growth potential, a good and sustainable financial position, and in general enjoy the confidence of the market. An analysis is also performed of each company's risk profile and how they individually affect the fund's aggregated risk structure.
When composing the portfolio, the manager focuses on selecting the most interesting equities within the biotechnology sector based on analysis methodology. Considerable weight is then placed on creating a well-balanced portfolio from a global perspective, and establishing a desired risk profile for the fund, while simultaneously limiting the related transaction costs.