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: 27.01.2023)
NAV: EUR 198.56 (26.01.2023)
Rolling performance (26.01.2023)
|26.01.2022 - 26.01.2023||-10.24%||-6.53%|
|26.01.2021 - 26.01.2022||13.41%||13.95%|
|24.01.2020 - 26.01.2021||21.92%||6.29%|
|25.01.2019 - 24.01.2020||26.93%||30.56%|
Annualized performance (26.01.2023)
|Since Inception p.a.||7.80%||7.84%|
Cumulative performance (26.01.2023)
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)||2.07% (30.12.2022)|
|Legal form||Luxembourg UCITS V SICAV|
|SFDR category||Article 8|
Key data (30.12.2022, base currency CHF)
|No. of positions||44|
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 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, declined 1.5% in December, after two months of rebound. This compares to -3.3% for the SPI and strengthens the outperformance of the small and mid segment observed since September. Both the Fed and ECB delivered continued hawkish messages, despite first signs of encouraging inflation datapoints. Longterm rates resumed their upward trends, with the Bund topping 2.5%, a level not seen since 2011. Economic indicators from the Eurozone were encouraging. The flash PMI rose for the second consecutive month to 48.8 in December. The less gloomy outlook was confirmed with the final PMI revised up to 49.3, indicating a much moderate GDP contraction for Q4 than initially expected. Especially Germany surprised positively thanks to a sharp improvement of the service component on the back of less concerns around energy shortages and the introduction of an energy price cap. Ifo and ZEW readings also suggested business climate improving at last, which is important for the Swiss perspective. Sector performance was patchy. Media (+5.6%), consumer products and services (+4.7%) and personal care, drug and grocery stores (+4.5%) performed best while automobiles and parts (-9.9%), technology (-7.8%) and basic resources (-4.7%) lagged the most.
Against this backdrop, the fund declined 2.0% (CHF / B shares), a 51 bps underperformance versus its benchmark. This brings ytd performance to -28.7%, 467 bps behind the benchmark.
Main detractors in the month were U-Blox (-8.9%), Bachem (-12.0%) and Skan Group (-8.4%). After being a top performer in November, the IoT specialist U-Blox consolidated in December with no particular news flow. The company aims at revenues of CHF 1 bn in 2025, implying a solid trend growth of 15% pa. Consensus is too low, which together with the current valuation of 5x EBITDA, makes up for significant share price upside. Bachem suffered from sector rotation out of the priciest parts of the market as well as sector read across following another profit warning from Polypeptide. Skan Group also fell victim of rotation out of quality/growth.
Top performers in the month were Burckhardt Compression (+7.8%), Pierer Mobility (+7.4%) and Swatch Group (+6.4%). Burckhardt Compression’s order intake passed the CHF 1 bn mark, confirming the exceptional increase in activity seen throughout all end markets of photovoltaics, LNG, and hydrogen. We continue to like the stock as one of our Top 10 ideas boasting a positive Ytd total return of 30%. Pierer Mobility increased its 2022 revenue guidance from 10%-15% to 15%-20%, as the demand for both bicycles and motorcycles remains strong. We expect consensus to continue to adjust higher. While a return to normal will only be gradual, China relaxing COVID measures was a clear positive for the luxury sector and notably Swatch.
It is an understatement to say 2022 did not pan out as expected. After the exogenous pandemic shock of 2020, another unexpected event put economic conditions upside down. But all in all, despite the war in Ukraine, Europe and of course Switzerland did prove quiet resilient. The summer post-COVID catch-up was beneficial and the labor market remained strong. On the industrial side, new orders fell amid the global slowdown, but the extraordinary levels of backlog helped sustain production activity. Also, compared to the most alarmist scenarios, the energy crisis did not prove catastrophic. Consumption was curbed and luckily mild temperatures allowed for a slow depletion of gas storage. For 2023 not everything is gloom. A cyclical disinflation phase is under way and already noticeable at the level of production/goods and energy, which have passed their peak. Also, after the volte face on COVID, we should be in for an economic rebound in China. Risks remain and are well known: higher energy bills for corporates and households, higher structural and cyclical inflation for a while still and lower growth.
After this crazy year, stock picking opportunities abound and valuation dispersion has not diminished. We continue to focus on strong balance sheets, good management and undervalued companies with attractive cashflows. On behalf of the Bellevue Entrepreneur Team, we thank you for your trust and wish you all the best for 2023!
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