Bellevue Entrepreneur Swiss Small & Mid

Swiss SMid Caps as measured by the SPIEX Index increased by 0.3% in the month (SMI -0.4%, MSCI World +2.5%). Softer US labour data initially supported bonds in August, before persistent inflation and renewed US–Iran tensions pushed energy prices and yields higher toward month-end. Policy rates were unchanged, but euro area inflation at 3.3% and Fed Chair Warsh’s hawkish Jackson Hole speech raised expectations of ECB and Fed hikes in September. In Europe, the economic data flow was more encouraging. German GDP was revised up to 0.3% q/q, led by exports, while factory orders rose 3.1%. The Eurozone Composite PMI increased to 52.1, it’s highest since November, as manufacturing reached a four-year high of 52.7 and services remained in expansion at 51.7. In Switzerland the procure.ch manufacturing PMI rebounded to 57.1 in August from 53.2 in July, its highest level since May, driven by stronger production, order books, purchasing volumes and employment. From a sector perspective Information Technology (+6.4%), Communication Services (+5.5%), and Materials (+3.0%) performed best while Utilities (-6.0%), Consumer Staples (-4.9%) and Real Estate (-3.4%) lagged the most.

Against this backdrop, the Fund (B-share, CHF) increased 0.1%, underperforming the benchmark by 21 bp. Ytd the Fund is up 6.1%, 272 bp below its benchmark.

Main detractors in the month were Aryzta (-22.4%), Compagnie Financiere Tradition (-8.5%) and Flughafen Zurich (-11.9%). Aryzta reported weaker-than-expected H1-26 results, driven by underperformance in Germany where soft end-market demand weighed on volumes. The company has revised its full-year guidance towards the lower end of the range, which still implies an acceleration in H2-26. At current prices, the shares trade on a c.10% FCF yield, which is unusual for a resilient F&B manufacturer. After reaching an all-time high, Tradition’s shares declined in August as underlying growth slowed sequentially, a moderation largely expected after an exceptional Q1 and a more demanding comparison base. Flughafen Zurich delivered H1 results globally in line with expectations including a good performance from its Swiss operations but a mixed results from its International business as the ramp up of the Noida airport in India is surprisingly uneven.

Top 3 contributors were Gurit (+75.2%), VZ Holding (+15.8%) and Kardex (+8.6%). Gurit impressed in H1, with adjusted operating EBIT margin jumping 5.3ppt to 11%, reassuring after the recent CEO change and confirming solid profitability under the new perimeter. The upgraded 2026 outlook points to earnings upside, while valuation remains attractive despite the recent share-price rebound. VZ Holding strength was supported by a better-than-expected H1 2026, with strong net new money and AUM driving management fees and total revenue growth of 14%. Cost control lifted the EBIT margin to 48.4% and net profit by 18%, while the upgraded FY margin outlook reinforced confidence in continued earnings momentum. Kardex performed strongly as H1 results showed robust order momentum, led by a 26% rise in total orders and a 118% surge for AutoStore solutions. The record backlog, sustained Q3 demand and confidence in stronger H2 revenue and margin delivery supported expectations for continued growth.

With the Q2 reporting season now largely complete, the stronger than expected delivery discussed last month has been confirmed. Earnings growth, beat rates and corporate commentary remained supportive, while European SMID companies continued to demonstrate greater resilience than macro headlines suggested. The economic backdrop remains favorable, although stickier inflation, higher energy costs and elevated long-term interest rates have increased the risk of tighter monetary policy. In this context, our structural focus on companies with strong balance sheets, pricing power, visible order books and exposure to secular trends is particularly well suited.