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: 02.06.2023)
NAV: EUR 373.93 (31.05.2023)
Rolling performance (01.06.2023)
|01.06.2022 - 01.06.2023||1.82%||-4.37%|
|01.06.2021 - 01.06.2022||-14.06%||-6.43%|
|29.05.2020 - 01.06.2021||48.37%||48.09%|
|31.05.2019 - 29.05.2020||4.34%||1.60%|
Annualized performance (01.06.2023)
|Since Inception p.a.||9.65%||9.70%|
Cumulative performance (01.06.2023)
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)||1.48% (31.05.2023)|
|Legal form||Luxembourg UCITS V SICAV|
|SFDR category||Article 8|
Key data (31.05.2023, base currency EUR)
|No. of positions||42|
Top 10 positions
Breakdown by sector
Opportunities & 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 1.0% (+11.4% ytd / EUR B shares), outperforming its benchmark by 29 bps (+338 bps ytd).
Top performers in the month were Majorel (+44.7%), Wärtsila (+20.9%) and Arjo (+13.6%). Majorel, the Luxemburg call center company, was the object of a takeover bid by Teleperformance at a price of EUR 30 per share. This represented a premium of 43% and a PE of 16x, more adequate considering the sound financials of the company and its strong growth perspective. Wärtsilä delivered a stronger-than-expected Q1 order intake, up 26%, with the energy division up 47%. Energy storage represented the largest improvement, adding to the EUR 300 mn order recently announced and implying that the activity breakeven is likely to come sooner than expected, a welcome boost that underpinned a ca. 10% consensus EPS upgrade. Arjo delivered strong Q1 results marked by both stronger organic growth and gross margin, leading to a 21% beat at the adjusted EBIT level. Cash conversion also improved, as inventory build-up continues to be reduced. Management reiterated its 2023 organic growth within its mid-term interval of 3-5% underpinning consensus expectations of 3.3%, and highlighted that early indications from its US customers suggest that the challenging regional situation is starting to turn around.
Top detractors in the month were U-Blox (-14.9%), Nexans (-14.9%) and Ipsos (-13.9%). After a strong month of March (+26%), U-Blox was subject to profit taking in a generally mixed semiconductor reporting season. U-Blox released Q1 revenues with an organic growth of 20% yoy and reiterated its 2023 objective of 6% to 16% revenue growth, led by strong demand and increased penetration for IoT products in both the industrial and automotive sectors. U-Blox is trading on an very attractive multiple of 7.5x 23E EBIT. Nexans released Q1 sales up 3.1% missing slightly estimates overall but with a disappointing decline in G&T (-10.7%) due to a drop of the umbilical business and project phasing. Ipsos delivered Q1 organic growth of 0.6%, slightly short of expectations due to a slower start of the year with US tech clients postponing a few large studies and China being still impacted by COVID-19. The company reiterated its FY2023 ca. 5% organic growth target, implying a strong 7% for the rest of the year supported by a good order book, recent contract gains and China’s acceleration.
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