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
Explained in 90 seconds
What's so special about ESG in connection with family-owned businesses? Co Portfolio Manager Birgitte Olsen explains this and more in the video.
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: 24.06.2022)
NAV: EUR 155.25 (22.06.2022)
Rolling performance (22.06.2022)
|22.06.2021 - 22.06.2022||-16.20%||-8.80%|
|22.06.2020 - 22.06.2021||36.01%||28.61%|
|21.06.2019 - 22.06.2020||-8.05%||-3.65%|
|22.06.2018 - 21.06.2019||-9.54%||2.86%|
Annualized performance (22.06.2022)
|Since Inception p.a.||4.92%||7.36%|
Cumulative performance (22.06.2022)
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)||2.19% (31.05.2022)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (31.05.2022, base currency EUR)
|No. of positions||45|
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 0.9% in May, with the topic of inflation, China lock down and geopolitics still prevailing. Inflation in the EZ increased sequentially to new records, pushing government bond yields further up. Most central banks have either continued to tighten (Fed, BOE) or have signalled their willingness to do so (ECB). So far the scenario of an imminent recession is not supported by economic data. In the US, retail sales and industrial production surprised positively, while in the Eurozone consumer confidence fell while business surveys remained on healthy levels. Flash EZ Composite PMI declined slightly to 54.9 in May from 55.8 in April, with services still reporting strong growth from pent-up pandemic demand, while manufacturing output only saw a modest expansion. In term of sector performance, energy (+10.1%), banks (+6.3%) and automobiles and parts (+6.2%) performed best, while media (-6.3%), food, beverage and tobacco (-4.9%) and real estate (-4.8%) lagged the most.
Against this backdrop, the fund declined 1.6% (EUR / B shares), underperforming its benchmark by 64 bps.
Bottom 3 performers in the month were Mowi (-9.7%), Publicis (-11.6%) and Sika (-12.1%). Mowi, the Norwegian salmon producer, experienced some profit taking after delivering Q1 results in line with expectations but with slightly reduced market growth expectations. Publicis suffered in the wake of Snapchat’s and Wallmart’s profit warnings. Our media channel checks suggest marketing budgets are holding up well, which was confirmed at the Publicis AGM. In terms of valuation, FCF yield of 11.5% integrates a significant slowdown, bearing in mind that it proved historically resilient during economic downturns and that the new and higher share of digital/consulting in the business mix should help underpin growth.
Top 3 contributors in the month were Subsea 7 (+22.2%), Synlab (+33%) and Lundin Energy (+13.7%). Given the recovery in energy prices, new project tenders are increasing for Subsea 7 – both for conventional subsea work and for offshore wind, as shown by the recent win of the Buzios 8 field in Brazil, a major contract representing more than 10% of its backlog. The company has material operational gearing and higher revenue should enable stronger margins over time as pricing improves and fleet utilization picks up. Synlab reacted positively to a strong set of Q1 results, clearly beating consensus by more than 30% at the operating level, as well as an increased guidance for both sales and profitability, on the back of higher COVID sales. We continue to like the group’s defensive growth profile and attractive valuation. Lundin Energy reached an historical high on the back of rising oil prices.
Following the war on Ukraine market dislocations have been massive. In Europe, the sectors of energy and basic materials have shot up overnight, while tech or retail have lost 25 to 30%. The European Stoxx 600 is only down 8% ytd but this hides great discrepancies.
Overall, inflation remains THE topic. From being negligible, then higher but transitory, inflation has quickly reached levels not seen since the 80s. While energy prices, raw materials or shipping costs are likely to normalize at some point, we also see factors, such as reshoring or the increased need for renewables likely to impact in the longterm. If sequentially we could be close to peak inflation, there are reasons to believe the new normal is higher for longer. In this context we favor companies with strong pricing power, high margin, little Capex needs and strong balance sheet. Also, market dislocations start to offer interesting selective entry levels. The bubble hast burst in high growth stocks with corrections of 50-60% and cyclicals both industrials and consumers trade at historic depressed valuations.
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