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: 22.03.2023)
NAV: EUR 433.99 (13.03.2023)
Rolling performance (13.03.2023)
|11.03.2022 - 13.03.2023||5.79%||5.35%|
|12.03.2021 - 11.03.2022||-3.07%||4.14%|
|13.03.2020 - 12.03.2021||54.59%||44.32%|
|13.03.2019 - 13.03.2020||-24.03%||-18.02%|
Annualized performance (13.03.2023)
|Since Inception p.a.||9.38%||8.80%|
Cumulative performance (13.03.2023)
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% (28.02.2023)|
|Legal form||Luxembourg UCITS V SICAV|
|SFDR category||Article 8|
Key data (28.02.2023, base currency EUR)
|No. of positions||43|
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.
- 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 SXXR, rose 1.9% in February, against receding US and global markets (SPX -2.5%, MXWO -2.4%, both in USD). Strong 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%. The labour market remains tight with unemployment rates at decades lows both in Europe and the US. The flash Eurozone PMI Composite Index rose for a fourth successive month, climbing to 52.3 from 50.3 in January. The improvement was led by services (53.0 from 50.8), while manufacturers returned to expansion mode for the first time since last May. Inflation in the Eurozone slowed only marginally to 8.5% and core inflation actually increased to a new record high of 5.6%. Against this backdrop, the Fed and the ECB raised interest rates by 50 basis points at their meetings in early February and confirmed further hikes. In term of sector performances, banks (+6.2%), automobile and parts (+6.2%) and energy (+5.2%) performed best while basic resources (-6.6%), real estate (-2.1%) and technology
(-0.7%) lagged the most.
Against this backdrop, the fund increased 2.4%, 9.2% ytd (EUR / B shares), outperforming its benchmark by 52 bps (49 bps ytd).
Main detractors in the month were Synlab (-16.6%), Merck (-6.1%) and Kering (-7.3%). Synlab surprisingly cut its 2023 guidance, which was only provided at 3Q. This clearly suggests to us not only a deterioration of near-term fundamentals and industry pricing pressure, but even more importantly a complete lack of visibility on the management side. We have decided to exit the position. Merck reported soft Q4 earnings with the divisions electronics and life science decelerating in the context of softer markets. 2023 guidance was also light, as COVID-related sales decelerate. The French luxury good company Kering presented weaker-than-expected FY22 results and heavier operating deleverage, mainly due to the Chinese lockdowns during Q4. The conference call was however very supportive on both Gucci’s growth and China reopening. We stick to our revaluation case in light of the big discount to LVMH.
Top 3 contributors in the month were Sopra Steria (+22.8%), Publicis (+16.2%) and Subsea 7 (+8.0%). Sopra Steria, the French IT Services company, delivered strong EPS growth of 32%, driven by both organic growth and operating margin at the upper end of expectations. For 2023 the company is guiding for a topline growth of at least 3%, while margins should also continue to improve on the back of a better monetization of the offering. This should pave the way for a valuation rerating. In the same vein, the advertising agency Publicis delivered stronger than expected 2022 organic growth of 10.1%, driven by data and digital transformation, two growth drivers likely to boost growth above 3% in 2023. Subsea 7 continued to benefit from a favourable environment with increasing activity in both traditional O&G and renewable end-markets. Pricing power has returned to the subsea sector on the back of tightening equipment and services capacity. The company reported above expectation Q4 results in terms of EBITDA, cashflow and order intake.
Europe continues to outperform being much more geared to rising interest rates and China reopening versus the US. Also, the valuation discount had hit a new high in the aftermath of the Ukraine war and the expectation of a deep energy crisis. Between July and September, European natural gas prices made new all-time highs in the preparation of a potentially cold winter combined with supply shortages. Six months on, the picture has dramatically changed with European gas prices down by 85% on the back of warmer weather and lower consumption. With this, 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 reach full capacity again during the summer 2023, the risk of another gas price spike is low and the next winter can come.
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