Tema expands its life sciences fund suite with the Tema Neuroscience and Mental Health ETF (MNTL)

Tema - Press release
By Tema - Press release
January 23, 2024

Tema ETFs (“Tema”) is excited to announce the launch of its Tema Neuroscience and Mental Health ETF (MNTL), on Nasdaq. MNTL is the first actively managed ETF seeking to provide long-term growth by investing in companies leading the fight against neurological diseases and psychiatric disorders. The MNTL portfolio will be managed by David K. Song, MD, PhD, CFA, who has led biotechnology and healthcare investment teams throughout his extensive 25-year career, including roles at Rockefeller Capital Management, Millennium and Balyasny. The portfolio will be balanced across key technologies and company profiles, ranging from diagnostics and care to therapeutics and clinical products, and with exposure to both established and emerging biopharma companies.

“The MNTL ETF extends a third pillar to our strategic life sciences fund offerings, which aim at providing investors with a better, innovative way to invest in the field.” said Maurits Pot, Chief Executive Officer and founder of Tema. “As with our Oncology and Cardiovascular and Metabolic funds, our Neuroscience and Mental Health fund offers targeted exposure to a major life sciences field that we feel is witnessing an acceleration in breakthrough innovations, transforming patient lives and outcomes. As these areas burgeon with innovation and the investment universe expands, we feel there is a growing need for domain expertise and active management to navigate risk.”

Central nervous system (CNS) diseases are a significant burden on society, affecting over one billion people worldwide[1]. Major mental diseases include for example Alzheimer’s disease, a form of dementia, which is estimated to affect 55 million people worldwide[2]. Depression and Schizophrenia together affect 300 million people globally or nearly 6% of all adults[3]. Stroke is the fifth leading cause of death globally and a leading cause of disability[4]. Rare neurological genetic disorders, a group of 1,700 different diseases, though rare, can be devastating particularly as they tend to disproportionately affect children.

Today CNS diseases are arguably the most unmet need in medicine. Until last year the treatments for dementia only focused on treating symptoms and not modifying the disease. As a result, the economic cost of caring for these patients in the US alone is 12x that of cancer[5]. Even though some treatments for Depression and Schizophrenia exist, 70% of patients with major depressive disorder that take standard of care still experience residual symptoms[6]. Poor mental health is estimated to cost the global economy $6 trillion by 2030[7].

Fortunately, recent breakthroughs offer hope that we are a turning point across multiples areas. “We are at a pivotal moment in neuroscience”, said David K. Song, MNTL portfolio manager. “Breakthroughs are happening across the field – from the first disease modifying agents for Alzheimer’s disease, to new genetic tools for rare children’s neurological disorders, and precision approaches to treating mental health. In fact, neurology has become the second most important therapy area in industry pipelines in 2023, representing around 940 separate clinical programs[8]. This is creating in our view a large and varied investment universe. As the biotech sector has undergone its sharpest downturn in decades, we feel that investors have been offered a compelling valuation opportunity set against accelerating innovation.”

For more information about MNTL or other offerings, please visit www.temaetfs.com.


 

ENDNOTES

[1] WHO, 2007.

[2] Alzheimer's Disease International, 2024.

[3] ScienceDirect, Pharmacogenomics in treatment of depression and psychosis: an update, Marin Jukic, Filip Milosavljević, Espen Molden, Magnus Ingelman-Sundberg, 2022.

[4] JNJ Investor Day 2023.

[5] J&J Innovative Medicine Business Overview, 2022.

[6] European Medicines Agency, September 2023.

[7] The Lancet, Mental health matters, November, 2020

[8] IQVIA, Two Steps Forward, One Step Back: The Long Road to Success in CNS, 2023.


Risk Information

Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s prospectus or summary prospectus, which may be obtained by visiting www.temaetfs.com. Read the prospectus carefully before investing.

Important Risks

Investing involves risk including possible loss of principal. There is no guarantee the adviser’s investment strategy will be successful.

Industry Concentration Risk: Because the Fund's assets will be concentrated in an industry or group of industries, the Fund is subject to loss due to adverse occurrences that may affect that industry or group of industries.

Biotechnology Industry Risk: The biotechnology industry can be significantly affected by patent considerations, including the termination of patent protections for products, intense competition both domestically and internationally, rapid technological change and obsolescence, government regulation and expensive insurance costs due to the risk of product liability lawsuits. In addition, the biotechnology industry is an emerging growth industry, and therefore biotechnology companies may be thinly capitalized and more volatile than companies with greater capitalizations.

Sector Focus Risk: Neuroscience companies are often subject to the potential or actual performance of a limited number of products or technologies and may be greatly affected if any of their products or technologies proves to be, among other things, unsafe, ineffective or unprofitable. Neuroscience companies may not be able to capitalize on such products or technologies. Neuroscience companies may face political, legal or regulatory challenges or constraints from competitors, industry groups or local and national governments. They are also subject to product liability claims, patent expirations and intense competition, which may affect the value of their equity securities. Neuroscience companies may be thinly capitalized, and their equity securities may be more volatile than companies with greater capitalizations. Neuroscience companies are also susceptible to the market and business risks of related industries, such as the biotechnology, pharmaceutical and health care equipment industries.

Investing in foreign and emerging markets involves risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and instruments. In addition, the fund is exposed to currency risk.

Because the Fund evaluates ESG factors to assess and exclude certain investments for non-financial reasons, the Fund may forego some market opportunities available to funds that do not use these ESG factors.

Tema Global Limited serves as the investment adviser to Tema Neuroscience and Mental Health ETF (the “Fund”), and NEOS Investments, LLC serves as a sub-adviser to the Fund. The Fund is distributed by Foreside Fund Services LLC, which is not affiliated with Tema Global Limited nor NEOS Investments, LLC. Check the background of Foreside on FINRA’s BrokerCheck.

For inquiries: info@temaetfs.com

 

Footnotes