Bellevue Entrepreneur Swiss Small & Mid (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 listed owner-managed companies in Switzerland where an entrepreneur or a founder family holds at least a 20% of a company’s voting rights, thereby exerting significant influence. The Management Team pursues a fundamental, bottom-up approach in identifying the most attractive founder-controlled companies while maintaining an investment portfolio diversified by sub-sector and style (Value, GARP, Growth).
Indexed performance (as at: 02.10.2023)
NAV: CHF 170.63 (28.09.2023)
Rolling performance (30.09.2023)
|30.09.2022 - 30.09.2023||10.59%||11.26%|
|30.09.2021 - 30.09.2022||-30.62%||-26.38%|
|30.09.2020 - 30.09.2021||34.11%||27.92%|
|30.09.2019 - 30.09.2020||19.50%||6.83%|
Annualized performance (30.09.2023)
|Since Inception p.a.||4.80%||5.16%|
Cumulative performance (30.09.2023)
Facts & Key figures
The fund’s aim is to achieve capital growth in the long term and invests in listed owner-managed companies in Switzerland 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 executives throughout the sector. It pursues a fundamental, bottom-up approach in identifying the most attractive founder-controlled companies with a small and mid market capitalization while maintaining an investment portfolio of 35 to 45 stocks diversified by 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)||1.37% (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 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.
- 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
Against this backdrop, the fund increased 0.3% in the month (+10.5% ytd, CHF / B shares), underperforming its benchmark by 114 bps (-108 bps ytd).
Main detractors in the month were SFS (-12.2%), LEM Holding (-4.0%) and Montana Aerospace (-5.1%). SFS slightly trimmed its 2023 guidance on the back of softer H1 numbers. Margins were impacted by a negative mix and weakness of the electronic business. We do not see this as structural and expect cyclical improvements as the destocking in electronics and industrial markets come to an end. LEM Holding published very strong quarterly results, with revenue and EBIT growth of 24% and 34% respectively. Order intake was lower with supply chains finally normalizing. This should not come as a surprise and was well flagged by management, nevertheless the market reacted negatively to it. We seized the occasion to increase our position. LEM is a clear beneficiary of rising electrification demand and valuation multiples fall rapidly below the LT average as growth kicks in. While the number of new orders at the Paris Air Show might have disappointed some investors, demand for new aircraft shows no sign of abating while the health of the supply chain is gradually improving. This should benefit Montana Aerospace, a vertically integrated manufacturer of lightweight metallic parts and structures for aerospace and e-mobility.
Top 3 contributors in the month were Sulzer (+11.2%), Gurit (+12.1%), and Kardex (+8.5%).
Sulzer’s Q2 results beat consensus and FY guidance was raised for order intake, sales and profitability. Sulzer benefits from positive demand trends in all its end markets and we await the result of the upcoming CMD and the strategic review of the new management. After a disappointing performance in 2023, Gurit rebounded ahead of its H1 results due in August. Its high margins tooling business, usually a leading indicator for demand, did show significant growth in Q1 (+24.1% org.), which might finally suggest a nearing of the cycle trough. Kardex reported strong H1 results. Against robust demand for intralogistics products, order backlog increased 17%, sales 30% and EBIT 81% on the back of a 150 bps increase in GM and tight costs control. This led to a sharp increase in consensus estimates, offsetting 18 months of negative revision trend. With 2023 EPS back to historical highs, we note Kardex' share price is still lagging 25% behind its peak level despite excellent operating performance.
Past performance is not a reliable indicator of future results and can be misleading. As the subfund 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