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: 09.12.2022)
NAV: EUR 338.97 (08.12.2022)
Rolling performance (08.12.2022)
|08.12.2021 - 08.12.2022||-21.38%||-17.93%|
|08.12.2020 - 08.12.2021||24.00%||26.85%|
|06.12.2019 - 08.12.2020||13.14%||9.78%|
|07.12.2018 - 06.12.2019||19.41%||21.39%|
Annualized performance (08.12.2022)
|Since Inception p.a.||9.10%||9.71%|
Cumulative performance (08.12.2022)
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 funda-mental, bottom-up approach in identifying the most attractive foundercon-trolled 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)||2.17% (30.11.2022)|
|Legal form||Luxembourg UCITS V SICAV|
|SFDR category||Article 8|
Key data (30.11.2022, base currency EUR)
|No. of positions||46|
Top 10 positions
Breakdown by sector
Opportunities & Risks
- Owner and family-run businesses think in generations, not in quarters.
- Focus, a sense of responsibility, strong identification with the company, and personal financial commitment have a positive impact on the share price.
- 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
European small and mid caps, as measured by the MSCI Europe Small Cap ex-UK, rose 6.1% in November further building on its October strength (+7.2%), as inflation finally began to show signs of moderation. Inflation in the Eurozone fell for the first time in 17 months, from 10.6% in October to 10% ie faster than expected (10.4%), mostly due to a sharp reduction of energy prices. This follows encouraging October CPI data in the US, which led Jerome Powell to announce the Fed could slow down the pace of its rate hikes as early as December. In term of economic indicator, the Eurozone flash PMI Index rose from 47.3 in October to 47.8 in November. Manufacturing continued to lead the downturn, with factory output dropping for a sixth successive month, but increased sequentially to 47.3 (46.4 in October). Service sector output also contracted at an unchanged rate compared to October. In term of sector performance, cyclicals continued to outperform defensives, with technology (+11.5%), media (+9.5%) and basic resources (+9.1%) performing best while telecommunications (+0.0%), healthcare (+2.0%) and real estate (+2.9%) lagged the most.
Against this backdrop, the fund rose 5.6% (EUR / B shares), a 53 bps underperformance versus its benchmark. Main detractors in the month were Rovi (-20.9%), Nexans (-11.1%) and Arjo (-6.9%). Rovi, the Spanish specialty healthcare company, held a disappointing CMD with no positive catalysts. The company announced the further delay of the US FDA approval of Rivsian against schizophrenia while the clinical trial of Letrozole shows no sign of acceleration. Nexans, the French cable manufacturer, posted solid Q3 trading update with beats across the three divisions usages, distribution and industry, but was subject to profit taking as the focus gradually shifted to an eventual cyclical slowdown in 2023. Arjo, the Swedish medtech company, released disappointing Q3 numbers and cut its 2022 guidance, which suggests that growth should remain negative at Q4. Improvements in 2023 will be notable, but with short-term headwinds in the US market and still increasing cost pressures, a full margin recovery is no longer expected despite better traction on price hikes.
Top performers in the month were u-blox (+18.9%), Nordex (+27.1%) and Burckhardt Compression (+19%). U-blox, the Swiss IoT chips and modules specialist, confirmed FY guidance at its CMD and reported revenue growth acceleration in Q3 to 79% versus 53% in H1 as well as record-high order books, driven by a continued expansion of demand in automotive and industrial IoT. The company disclosed its ambition to reach revenue of CHF 1 bn, implying a continuing solid trend growth of 15% p.a. for the period 2023-25. We see more than 60% upside to consensus EPS, which together with the low valuation at current 5x EBITDA makes up for significant upside. Despite another guidance cut, Nordex share price rebounded strongly on the back of improving pricing. The newly observed pricing discipline throughout the sector should, combined with easing raw materials and logistic prices, open the door to a strong margin rebound in 2023 and 2024. Burckhardt Compression jumped after reporting an exceptional increase in order intake both for compressor systems and services, reflecting the strength of the global energy capex cycle. The group continues to enjoy outstanding demand in all end markets of photovoltaics, LNG, and hydrogen and faces little issues in passing on higher production costs. The company also introduced a new 5 year plan at its CMD, which should lead to 9% top line CAGR until FY 2027, with a 40% contribution from applications that support the world's energy transition.
With further falling interest rates we have added to our growth exposure but also topping up on stocks badly hit by the sanguine inflation uplift. We have met with a great number of managements to close the year and prepare for 2023. Visibility is very different from sector to sector and even from company to company. As long as interest rates stay volatile we stick to our 50% GARP, 25% Value and 25% Growth architecture within the fund and still find very good opportunities within each category. We had greatly diminished our Rovi position ahead of the CMD and have reduced Nexans in light of the strong build up in capacities between all three cable players in Europe. Metso and Nordex are high conviction ideas which we have increased in weighting.
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