Bellevue Sustainable Entrepreneur Europe (Lux)
Owner-operated or family-run companies think in generations, not in quarters
Solid balance sheets, high innovative strength and safety awareness have a positive effect on the share price
Companies impress with high ESG scores
Please find a more detailed description of share classes here.
The fund’s aim is to achieve capital growth in the long term. The Fund invests in listed owner-controlled companies in Europe where an entrepreneur or a founding family holds at least a stake of 20% of the company’s voting rights. Long-term perspectives, a strong sense of responsibility, ethical behavior, keen environmental awareness and low debt are among the key success factors of sustainable owner-managed companies.
Indexed performance (as at: 03.12.2021)
NAV: EUR 185.11 (02.12.2021)
Rolling performance (02.12.2021)
|02.12.2020 - 02.12.2021||15.47%||21.48%|
|02.12.2019 - 02.12.2020||1.30%||-0.26%|
|02.12.2018 - 02.12.2019||8.05%||15.56%|
|02.12.2017 - 02.12.2018||-8.47%||-4.94%|
Annualized performance (02.12.2021)
|Since Inception p.a.||6.87%||9.19%|
Cumulative performance (02.12.2021)
Facts & Key figures
The fund’s aim is to achieve capital growth in the long term. The Fund invests in listed owner-controlled companies in Europe where an entrepreneur or a founding family holds at least a stake of 20% of the company’s voting rights. Long-term perspectives, a strong sense of responsibility, ethical behavior, keen environmental awareness and low debt are among the key success factors of sustainable owner-managed companies. The experienced management team, which is well connected in entrepreneurial circles, uses a fundamental bottom-up approach to identify the most attractive owner-managed companies with medium and large market capitalizations and constructs a portfolio of 35 to 45 stocks diversified across countries, sectors and style (Value, GARP, Growth). The Fund takes ESG factors into consideration while implementing the aforementioned investment objectives.Show moreShow less
Investment suitability & Risk
|Investment Manager||Bellevue Asset ManagementAG|
|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% (30.11.2021)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (30.11.2021, base currency EUR)
|No. of positions||48|
Top 10 positions
Breakdown by sector
Opportunities & Risks
- Owner and family-run businesses think in generations, not in quarters.
- Economic sustainability: Low debt, high degree of innovation, stable growth and strong margins.
- Social responsibility, ethical behavior and keen environmental awareness are characteristic entrepreneurial values.
- Multi-award-winning management team with a long and successful track record investing in owner-run firms.
- Entrepreneurs for entrepreneurs – the Bellevue Group is itself an owner-run company with the majority of shares held by employees.
- The fund invests in equities. Equities are subject to price fluctuations and so are also exposed to the risk of price losses.
- The fund may invest a proportion of its assets in financial instruments that might under certain circumstances have a relatively low level of liquidity, which can in turn affect the fund’s liquidity.
- The fund invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
- Succession planning poses an additional risk for owner-run companies.
- The fund may engage in derivatives transactions. The increased opportunities gained come with an increased risk of losses.
Review / Outlook
European equities as measured by the SXXR declined 3.3% in September, outperforming both US and global market indexes. After concerns about the potential collapse of the Chinese real estate giant Evergrande, investor’s attention shifted to inflation risks and a more hawkish Fed with yields rising quickly. Commodities were also on the rise witness oil peaking at USD 79 pba, ahead of pre-crisis levels. In term of macro surveys, the Eurozone PMI Composite declined to 56.1 in September from 59.0 in August, with both services (56.3) and manufacturing (55.6) sequentially decelerating but remaining well in expansion territory. In terms of sectors, cyclicals and value outperformed defensives/growth, which typically have longer duration cycle and consequently higher negative sensitivity to rising LT rates. Energy (+9.8%), banks (3.7%) and travel & leisure (+2.6%) performed best, while real estate (-8.6%), utilities (-8.6%) and basic resources (-8.4%) lagged the most.
Against this backdrop, the fund lost 2.9% (EUR / B shares), outperforming the SXXR by 41 bps.
Top contributors in the month were Lundin Energy (+24%), Subsea 7 (+14.9%) and Publicis (+4.9%). Lundin Energy, the Swedish E&P company focused on the Norwegian basin benefited from the marked uptick in oil, which combined with cost adjustment measures should drive FCF generation to historical highs. E+P stocks should catch up as they have lagged the forward oil prices and trade at a large discount to the overall market and their historic valuations. Subsea 7, the Norwegian energy services company, also benefited displaying a good level of commercial activity as shown by the USD 750 mn EPCI contract announced at the end of the month. Publicis continued its upward trend sustained by further positive advertising momentum for Q3, reaching levels ahead of pre-pandemic indexes. Publicis is trading on a ca 10% 2022 FCF yield which leaves significant rerating potential.
Main detractors in the month were Stora Enso (-12.7%), Worldline (-12.3%) and Inpost (-13.4%). Stora Enso traded down on peak pulp sentiment with inventories rising and China prices down 20%. While pulp accounts for less than 25% of group EBIT our investment case is around forest and wood assets, packaging and the newly presented Lignode opportunity in lithium batteries (EUR 1 bn of potential revenues). Worldline continued to suffer from a combination of factors including prolonged limited international travel and the absence clarity on the future of the payment terminal activity. We deem the weakness exaggerated and look forward to its CMD on Oct. 27. Despite strong interim results reflecting further market share gains in Poland, Inpost was weak during the month, reflecting the overall weakness of the e-commerce space. Guidance for 2021 was confirmed, implying an acceleration of earnings momentum in H2 2021.
PMIs are weakening and inflation is rising both driven by demand/supply in-balances and supply chain disruptions. Society has been more or less switched off during 18 months and the system needs to adjust to a new level of demand. JIT supply chains are not build to cope with this kick-start. Spot inflation will normalize over time, although the absolute level should clearly be above pre-pandemia. We do not adhere to a stagflation scenario and expect growth to return driven by large pent-up demand as COVID recedes and output is debottlenecked . Also, the creation of the joint Recovery Fund and the recent German elections should impact spending and investing in a positive way. During the month we have increased energy exposure as a good hedge to rising inflation. We have also taken profits in our Lindt position. Our value positions have performed well in the last rotation and we keep a well diversified portfolio.
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