Bellevue Entrepreneur Switzerland (CH)
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
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 sector and style (Value, GARP, Growth).
Indexed performance (as at: 22.03.2023)
NAV: CHF 195.50 (14.03.2023)
Rolling performance (14.03.2023)
|14.03.2022 - 14.03.2023||-1.79%||-5.85%|
|12.03.2021 - 14.03.2022||-1.49%||8.74%|
|13.03.2020 - 12.03.2021||66.02%||33.26%|
|14.03.2019 - 13.03.2020||-9.33%||-8.88%|
Annualized performance (14.03.2023)
|Since Inception p.a.||10.47%||8.12%|
Cumulative performance (14.03.2023)
Facts & Key figures
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. 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, mid as well as large 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 Bank, Zürich|
|Fund Administrator||PMG Investment Solutions AG, Zug|
|Year end closing||31. Dec|
|NAV Calculation||Daily "Forward Pricing"|
|Cut of time||15:00|
|Subscription Fee (max.)||5.00%|
|Total expense ratio (TER)||1.58% (28.02.2023)|
|Legal form||Investment funds under Swiss law|
|SFDR category||Article 8|
Key data (28.02.2023, base currency CHF)
|No. of positions||42|
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 equities, as measured by the SPI Index, fell 1.3% in February, in contrast with European equities, which rose 1.9%, 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, communication services (+6.9%), utilities (+4.3%) and financials (+2.1%) performed best, while consumer staples (-4.2%), real estate (-3.1%) and healthcare (-3.1%) lagged the most. The SPI 3 defensive heavyweights performed poorly with Roche -4.7%, Novartis -3.9% and Nestle -4.8%.
Against this backdrop, the fund rose 2.1%, 12.4% ytd (CHF / A shares), outperforming its benchmark by 336 bps (+823 bps ytd).
Main detractors in the month were Vontobel (-9.9%), U-Blox (-7.2%) and Roche (-4.7%). 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. Roche was under pressure due to a big placement by a member of the family pool.
Top 3 contributors in the month were Zur Rose (+45.4%), Swissquote (+9.8%) 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. Swissquote continued to be sought after, following the publication of its reassuring trading statement published in January, and also thanks to the market’s increasing understanding that the increase in interest rates provide a material tailwind to the group. 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%). The SPIEX is more geared towards industrials & financials (48%) than healthcare & staples (25%). The SPI is more of a bond proxy index with 54% in the sectors of healthcare & staples, 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.
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 subfund, thus the performance of a benchmark is not a reliable indicator of future performance of the subfund 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.Show moreShow less