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
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Investment Focus
ISIN-No. LU0631859062
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)
I-EUR | Benchmark | |
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)
I-EUR | Benchmark | |
1 year | 1.82% | -4.37% |
3 years | 9.07% | 9.81% |
5 years | 1.66% | 4.10% |
10 years | 10.68% | 9.66% |
Since Inception p.a. | 9.65% | 9.70% |
Cumulative performance (01.06.2023)
I-EUR | Benchmark | |
1M | -0.68% | -2.26% |
YTD | 10.85% | 5.53% |
1 year | 1.82% | -4.37% |
3 years | 29.83% | 32.52% |
5 years | 8.56% | 22.25% |
10 years | 175.99% | 151.56% |
Since Inception | 200.08% | 201.63% |
Annual performance
I-EUR | Benchmark | |
2022 | -22.93% | -20.70% |
2021 | 20.30% | 24.71% |
2020 | 16.25% | 11.74% |
2019 | 28.25% | 28.47% |
Facts & Key figures
Investment Focus
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, Show moreShow less
Investment suitability & Risk
Low risk
High risk
General Information
Investment Manager | Bellevue Asset Management AG |
Custodian | RBC Investor Services, Luxembourg |
Fund Administrator | RBC Investor Services, Luxembourg |
Auditor | PWC, Luxembourg |
Launch date | 30.06.2011 |
Year end closing | 30. Jun |
NAV Calculation | Daily "Forward Pricing" |
Cut of time | 15:00 CET |
Management Fee | 0.90% |
Subscription Fee (max.) | 5.00% |
Performance Fee | 10.00% |
ISIN number | LU0631859062 |
Valor number | 13084174 |
Bloomberg | BFLESIE LX |
WKN | A1JG2G |
Total expense ratio (TER) | 1.48% (31.05.2023) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Key data (31.05.2023, base currency EUR)
Beta | 0.88 |
Volatility | 17.20 |
Tracking error | 6.61 |
Active share | 90.29 |
Correlation | 0.93 |
Sharpe ratio | 0.56 |
Information ratio | -0.29 |
Jensen's alpha | -0.74 |
No. of positions | 42 |
Portfolio
Top 10 positions
Market capitalization
Geographic breakdown
Breakdown by sector
Opportunities & Risks
Opportunities
- 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.
Risks
- 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.
Documents
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. Show moreShow less