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: 01.12.2023)
NAV: EUR 441.80 (30.11.2023)
Rolling performance (30.11.2023)
|30.11.2022 - 30.11.2023||5.87%||7.76%|
|30.11.2021 - 30.11.2022||-7.62%||-2.50%|
|30.11.2020 - 30.11.2021||18.14%||21.54%|
|30.11.2019 - 30.11.2020||0.93%||-2.42%|
Annualized performance (30.11.2023)
|Since Inception p.a.||9.04%||8.82%|
Cumulative performance (30.11.2023)
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||CACEIS Investor Services Bank, Luxembourg|
|Fund Administrator||CACEIS Investor Services Bank, 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)||1.49% (31.10.2023)|
|Legal form||Luxembourg UCITS V SICAV|
|SFDR category||Article 8|
Key data (31.10.2023, base currency EUR)
|No. of positions||39|
Top 10 positions
Breakdown by sector
Benefits & 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
Against this backdrop, the fund declined 4.9% (EUR / B shares), underperforming its benchmark by 133 bps.
Main detractors in the month were Worldline (-55.1%), Kion (-20.8%) and Metso (-15%). Worldline collapsed 60% after having reduced both 2023 and 2024 guidance. While disappointing, the share price reaction was completely disconnected from the financial impact of the profit warning, as 2023 and 2024 EPS should be reduced by -15% resp. -20%. This left Worldline trading on an EV/EBITDA multiple of less than 6x, a very cheap level for a company absolutely central in the European payment system while recent M&A operations in the sector have been done between 9x and 13x. At the time we write, Worldline share price has recovered ca. 40% from its trough. Kion’s Q3 orders, sales, EBIT and cash flow figures were in line with the recent pre-announcement. However higher interest and tax led to a 32% miss to Q3 net income forecast. Finnish mining equipment provider Metso reported 6% yoy organic order decline, -21% for aggregates and -1% for minerals. Medium-term outlook is positive as the order pipeline has increased substantially during 2023, however investment decision-making among its mining customers is slow due to higher rates and cost inflation.
Top 3 contributors in the month were Pernod Ricard (+6.1%), BE Semiconductor (+4.6%) and Essity (+5%). Despite the release of a lackluster set of Q1 results, Pernod shares rebounded. The market was reassured by the reiteration of the FY guidance. Also, the company commented on short term trading improvements in China and a normalization in the US. Finally the management also highlighted a strong outlook for India and Travel retail. All these comments bode well for a further rerating of the shares in the coming quarters. BESI reported better than expected Q3 results marked once again by very strong profitability underpinned by its best in class gross margin and strong costs management. Q4 revenue guidance of 15% to 25% q/q suggested that BESI has likely passed the trough of this downcycle while 2024 is shaping up to be a growth year. Future announcement of additional hybrid bonding orders and the broadening of the clients base should gradually dispel concerns over the adoption of this technology. Essity performed well following a good 13% EBIT beat at Q3, driven by a strong margin recovery at professional hygiene and health & medical. This positive surprise bodes well for a further margin recovery, driven by product mix improvements and continued restructuring. We continue to believe that the shares are attractively valued at only 7.5x EV/EBITDA 2024E, a strong discount to peers.
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