Bellevue Sustainable Entrepreneur Europe (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’s aim is to achieve capital growth in the long term. The Fund invests in listed owner-controlled companies in Europe where an entrepreneur or a founding family holds at least a stake of 20% of the company’s voting rights. Long-term perspectives, a strong sense of responsibility, ethical behavior, keen environmental awareness and low debt are among the key success factors of sustainable owner-managed companies.
Indexed performance (as at: 09.12.2022)
NAV: EUR 414.32 (08.12.2022)
Rolling performance (08.12.2022)
|08.12.2021 - 08.12.2022||-11.09%||-6.42%|
|08.12.2020 - 08.12.2021||21.41%||23.96%|
|06.12.2019 - 08.12.2020||1.59%||-1.32%|
|07.12.2018 - 06.12.2019||13.41%||21.46%|
Annualized performance (08.12.2022)
|Since Inception p.a.||9.20%||8.81%|
Cumulative performance (08.12.2022)
Facts & Key figures
The fund’s aim is to achieve capital growth in the long term. The Fund invests in listed owner-controlled companies in Europe where an entrepreneur or a founding family holds at least a stake of 20% of the company’s voting rights. Long-term perspectives, a strong sense of responsibility, ethical behavior, keen environmental awareness and low debt are among the key success factors of sustainable owner-managed companies. The experienced management team, which is well connected in entrepreneurial circles, uses a fundamental bottom-up approach to identify the most attractive owner-managed companies with medium and large market capitalizations and constructs a portfolio of 35 to 45 stocks diversified across countries, sectors and style (Value, GARP, Growth). Awarded the FNG label, the fund takes ESG factors into account while implementing its 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)||2.18% (30.11.2022)|
|Legal form||Luxembourg UCITS V SICAV|
|SFDR category||Article 8|
Key data (30.11.2022, base currency EUR)
|No. of positions||44|
Top 10 positions
Breakdown by sector
Opportunities & Risks
- Owner and family-run businesses think in generations, not in quarters.
- Economic sustainability: Low debt, high degree of innovation, stable growth and strong margins.
- Social responsibility, ethical behavior and keen environmental awareness are characteristic entrepreneurial values.
- 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.
- 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.
- The fund invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
- 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
European equities, as measured by the Stoxx 600, rose 6.9% in November, further building on its October strength, as inflation finally began to show signs of moderation. Inflation in the Eurozone fell for the first time in 17 months, from 10.6% in October to 10% ie faster than expected (10.4%), mostly due to a sharp reduction of energy prices. This follows encouraging October CPI data in the US, which led Jerome Powell to announce the Fed could slow down the pace of its rate hikes as early as December. In term of economic indicator, the Eurozone flash PMI Index rose from 47.3 in October to 47.8. Manufacturing continues to be weak. Factory output fell for a sixth successive month, but increased sequentially to 47.3 form 46.4 in October. The service output contracted at an unchanged rate compared to October. In term of sector performance, cyclicals outperformed defensives, with basic resources (16.2%), consumer products and services (15.2%) and technology (13.9%) performing best while telecom (+0.8%), healthcare (+3.2%) and real estate (+3.5%) lagged the most.
Against this backdrop, the fund rose 7.5% (EUR / B shares), a 60 bps outperformance versus its benchmark.
Top performers in the month were Richemont (+27.6%), Metso Outotec (+16.5%) and M6 (+31.1%). The Swiss luxury group Richemont reported far better-than-expected H1 results with 16% local currency top line growth versus a consensus of 12%. Profitability surprised strongly on the upside, driven by the rebound in the Asia-Pacific region. Metso Outotec’s Q3 confirmed the demand strength and margins made better-than-expected progress towards the 15%+ target. The long-term drivers for the mining equipment and service company remain compelling, offering exposure to structural growth in demand for metals critical to the electrical transition, particularly copper and battery metals. After the disappointment of the failed merger with TF1, M6 rebounded sharply together with all private consumption led sectors negatively correlated to inflation. We continue to rate M6 much better quality than perceived by the market. The stock is currently trading on an EV/EBIT’22 of 4x and boasts a dividend yield of 9% secured by record high earnings and a EUR 300 mn net cash position.
Main detractors in the month were Roche (-6.8%), Homeserve (-0.3%) and Zalando (-0.8%). Roche fell as the company announced the failure of is long-awaited Alzheimer’s treatment gantenerumab in the Phase III trial. Homeserve, which will be delisted by the beginning of next year following the offer by Brookfield Asset Management, was flat during the month around its takeover price. The online retailer Zalando, a position initiated towards November end, initially weakened after a strong rebound earlier in the month.
With further falling interest rates we have added to our growth exposure but also topping up on stocks badly hit by the sanguine inflation uplift. We have met with a great number of managements to close the year and prepare for 2023. Visibility is very different from sector to sector and even from company to company. As long as interest rates stay volatile we stick to our 50% GARP, 25% Value and 25% Growth architecture within the fund and still find very good opportunities within each category. We diminished our Prysmian position in light of the strong build up in capacities between all three cable players in Europe. We exited Kering after a disappointing management meeting, replacing it with the more expensive but high quality LVMH. We increased our Vestas position following renewed pricing discipline throughout the sector and added to discretionary consumption by switching out of Carrefour into ABI and Zalando.
Past performance is not a reliable indicator of future results and can be misleading. As the sub-fund 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