Bellevue Entrepreneur Europe Small (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
Please find a more detailed description of share classes here.
The Fund invests in small capitalized, listed owner-managed companies in Europe where an entrepreneur/founder family holds at least a 20% of a company’s voting rights, thereby exerting signif. influence. The team pursues a fundamental, bottom-up approach in identifying the most attractive founder-controlled companies while maintaining an investment portfolio diversified by country, sub-sector and style (Value, GARP, Growth).
Indexed performance (as at: 02.10.2023)
NAV: EUR 365.00 (28.09.2023)
Rolling performance (30.09.2023)
|30.09.2022 - 30.09.2023||21.15%||14.40%|
|30.09.2021 - 30.09.2022||-29.34%||-25.25%|
|30.09.2020 - 30.09.2021||33.44%||35.65%|
|30.09.2019 - 30.09.2020||15.16%||7.04%|
Annualized performance (30.09.2023)
|Since Inception p.a.||9.21%||9.15%|
Cumulative performance (30.09.2023)
Facts & Key figures
The fund’s aim is to achieve capital growth in the long term and invests in small capitalized, listed owner-managed companies in Europe where an entrepreneur or a founder family holds at least a 20% of a company’s voting rights. The qualities of these companies – a focused business model, fast decision-making processes and a strong corporate culture – go hand in hand with efficient innovation, high product quality and strong customer loyalty. The corresponding impact on the share price is demonstrably positive. The fund’s Management Team offers a wealth of experience in this investment segment and has built up an extensive network with entrepreneurs throughout the sector. It pursues a fundamental, bottom-up approach in identifying the most attractive foundercontrolled companies with a small market capitalization while maintaining an investment portfolio of 35 to 45 stocks diversified by country, sub-sector 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 Management AG|
|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)||1.47% (29.09.2023)|
|Legal form||Luxembourg UCITS V SICAV|
|SFDR category||Article 8|
Top 10 positions
Breakdown by sector
Benefits & Risks
- Above-average top line growth driven by high innovation and strong pricing power.
- Higher operating margins on the back of high market share ("Champion in the niche") combined with good cost discipline.
- More conservatively financed, lower debt exposure and a higher risk capacity compared to non-family businesses.
- 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.
- Shares in smaller businesses are generally traded in lower volumes and are subject to bigger price fluctuations than larger enterprises.
- The fund invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
- 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 may engage in derivatives transactions. The increased opportunities gained come with an increased risk of losses.
Review / Outlook
Against this backdrop, the fund increased 2.5% (EUR / B shares), underperforming its benchmark by 20 bps. This brings the performance of the fund over the first 7 months of 2023 to 14.5%, 508 bps above its benchmark.
Top detractors in the month were Cargotec (-13.8%), Metso (-10.1%) and Alten (-8.3%). Improving sales and growing profitability but falling yoy orders is a difficult juncture for capital goods companies and Cargotec was no exception. Despite 10% top line growth and EBIT margins improving by 270 bps to 13.5%, falling yoy order intake, although well flagged by management was not to the market linking. Cargotec is one of the cheapest industrials in Europe and the upcoming demerger of Kalmar should help crystallise value. Metso reported raising sales and above expectation record EBITA margins of 16.6% for Q2, however new orders declined by 11% yoy. With 40% exposure to copper and battery related metals Metso is well positioned to leverage the energy transition. Alten reported a decent organic revenue growth of +8.6%, but for once fell slightly short of expectations. The company gave a 2023 growth target of 10% implying a stabilization of its growth trend around 10% in H2 and no downward consensus revision. At ca 10x the 12m fwd EBIT, Alten is trading at historical trough levels implying a highly positive risk/reward while long term perspectives are positively underpinned by the electrification and digitization mega trends.
Top performers in the month were Arjo (+17.1%), TF1 (+18.2%) and Wartsilä (+10.8%). Arjo finally delivered a healthy 5% organic sales growth in Q2 triggering a relief rally. The demand picture has started to improve both in the US and Canada, contributing to positive sales growth for the first time since 2021. Lower costs and a more balanced relationship to prices should further help improve margins going forward. TF1 reported H1 operating results 14% above consensus on higher ad revenues and tight control. Encouragingly, TF1, as well as most European TV so far, announced that ad trends turned positive at the beginning of Q3, leading to consensus EPS upgrades of 5% to 10%. TF1 trades on an very low 3.5x 23 EBIT and offers a 8% dividend yield. Wartsilä reported a positive Q2 with decent activity in the relevant marine segments and good demand for battery storage. At EBIT margin level Wartsilä delivered a consensus beat with energy storage operations posting positive EBIT for the first time.
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