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.
Investment Focus
ISIN-No. LU1477743469
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: 22.03.2023)
NAV: CHF 178.81 (13.03.2023)
Rolling performance (13.03.2023)
I-CHF | Benchmark | |
11.03.2022 - 13.03.2023 | -7.49% | -6.22% |
12.03.2021 - 11.03.2022 | -4.79% | -1.97% |
13.03.2020 - 12.03.2021 | 67.90% | 49.32% |
13.03.2019 - 13.03.2020 | -9.67% | -11.06% |
Annualized performance (13.03.2023)
I-CHF | Benchmark | |
1 year | -7.49% | -6.22% |
3 years | 13.93% | 11.14% |
5 years | 2.89% | 2.85% |
Since Inception p.a. | 5.86% | 5.86% |
Cumulative performance (13.03.2023)
I-CHF | Benchmark | |
1M | -3.14% | -3.37% |
YTD | 7.41% | 5.13% |
1 year | -7.49% | -6.22% |
3 years | 47.87% | 37.28% |
5 years | 15.30% | 15.09% |
Since Inception | 43.05% | 43.06% |
Annual performance
I-CHF | Benchmark | |
2022 | -28.69% | -24.02% |
2021 | 25.23% | 22.19% |
2020 | 20.36% | 8.07% |
2019 | 26.80% | 30.42% |
Facts & Key figures
Investment Focus
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 procShow 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 | PriceWaterhouseCoopers |
Launch date | 30.11.2016 |
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% |
ISIN number | LU1477743469 |
Valor number | 33635329 |
Bloomberg | BVBESIC LX |
WKN | A2ASDE |
Total expense ratio (TER) | 2.07% (28.02.2023) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Redemption period | Daily |
Key data (28.02.2023, base currency CHF)
Beta | 0.97 |
Volatility | 19.30 |
Tracking error | 5.56 |
Active share | 50.80 |
Correlation | 0.96 |
Sharpe ratio | 0.57 |
Information ratio | 0.45 |
Jensen's alpha | 2.97 |
No. of positions | 45 |
Portfolio
Market capitalization
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 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
Swiss small and mid caps, as measured by the SPIEX, rose 1.5% in February, along positive European equities (SXXP +1.9%, MSCI Europe Small +2.75%), helped by China reopening and easing energy concerns. US and global markets receded (SPX -2.5%, MXWO -2.4% both in USD) as stronger economic data reignited fears of tighter monetary policies for longer and ultimately recession angst. Longterm rates resumed their upward trend, with the German Bund back to 2.65% and treasuries up 41 bps to 3.92%. In Switzerland the 10Y bonds finished at 1.47%, up +18 bps. The labour market remains tight with unemployment rates at decades lows. The flash Eurozone PMI Composite Index rose for a fourth successive month, climbing to 52.3 (50.3 in January). The improvement was led by services (53.0, 50.8 in Janaury), while manufacturers returned to expansion mode for the first time since last May. In Switzerland the PMI for the manufacturing industry just entered contraction territory in January and stayed below 50, while services remained firmly in expansion mode (55.3) Q4 Swiss GDP flatlined but remains larger than pre-COVID levels, outperforming European peers thanks to stronger domestic demand.
Sector wise, utilities (+4.3%), industrials (+3.1%) and financials (+3%) performed best, while communication services (-3.6%), real estate (-3.1%) and healthcare (-0.8%) lagged the most.
Against this backdrop, the fund rose 2.0%, 11.8% ytd (CHF / B shares), outperforming its benchmark by 56 bps (+267 bps ytd).
Main detractors in the month were Roche (-4.7%), Vontobel (-9.9%) and U-Blox (-7.2%). Roche was under pressure during the month, due to a large placement by a member of the family pool. Vontobel reported FY22 figures slightly below expectations. Guidance was cautious in to 2023, in view of the negative impact of lower AuM on management fees in H1. After a very strong 2022, U-Blox, designer of IoT chips and modules, has been a laggard for the 2nd month in a row, but we have learned to be patient with the stock. Backed by a strong order book, the company confirmed 2023 will be another year of growth sustained by positive trends in auto and industrials, two sectors representing 90% of the group sales. This suggests significant upside potential to an overly skeptical consensus.
Top 3 contributors in the month were Zur Rose (+45.4%), Kuehne & Nagel (+10.8%) and Bossard (+11.8%). Zur Rose benefited from the announcement of its divestment of the Swiss business to the Migros/Medbase group. This significantly strengthens its capital structure, making the company net debt-free, and removing any refinancing risks. Kuehne & Nagel reported Q4 slightly below consensus, but provided a very bullish mid-term (2026) guidance pointing to EBIT CAGR of 17-19% vs the 2019 base, suggesting more than 50% upside to the mid-term consensus estimates. Bossard performed strongly in correlation with improving European PMIs. The company also reported strong H2 figures, with a 16.5% EBIT beat and margin at 12.3%, well ahead the 11.4% estimated by consensus.
Europe equities continue to outperform being much more geared to rising interest rates and China reopening than the US. This also explains the strong outperformance of the SPIEX (+9.3% ytd) vs. the SPI (+4.1%). In the SPIEX, industrials/financials represent 48%, while healthcare/staples is 25%. This is the opposite in the SPI (28%, resp. 54%), which is why it underperforms in an environment of rising rates. There are some good news from the European energy front. In the aftermath of the Ukraine war European natural gas prices hit all-time highs in the preparation of a potentially cold winter combined with supply shortages. Six months on, the picture has dramatically changed with gas prices down by 85% on the back of warmer weather and lower consumption. Gas stocks remain high and the January stockpile is at the top end of the seasonal range of the past 10 years. This means Europe can reaching full capacity again during the summer 2023, the risk of another gas price spike is low and the next winter can be managed.
Documents
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. Show moreShow less