Bellevue Entrepreneur Europe Small (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 invests in small capitalized, listed owner-managed companies in Europe where an entrepreneur/founder family holds at least a 20% of a company’s voting rights, thereby exerting signif. influence. The team pursues a fundamental, bottom-up approach in identifying the most attractive founder-controlled companies while maintaining an investment portfolio diversified by country, sub-sector and style (Value, GARP, Growth).
Indexed performance (as at: 29.09.2022)
NAV: EUR 284.96 (28.09.2022)
Rolling performance (28.09.2022)
|28.09.2021 - 28.09.2022||-28.08%||-24.62%|
|28.09.2020 - 28.09.2021||32.38%||36.23%|
|27.09.2019 - 28.09.2020||14.10%||6.37%|
|28.09.2018 - 27.09.2019||-13.83%||-2.81%|
Annualized performance (28.09.2022)
|Since Inception p.a.||7.60%||8.73%|
Cumulative performance (28.09.2022)
Facts & Key figures
The Fund invests in small capitalized, listed owner-managed companies in Europe where an entrepreneur or a founder family holds at least a 20% of a company’s voting rights, thereby exerting significant influence. The typical qualities of these companies – a focused business model, fast decision-making processes, sustainable business policies 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 entrepreneurs throughout the sector. It pursues a fundamental, bottom-up approach in identifying the most attractive founder-controlled companies with a small market capitalization while maintaining an investment portfolio of 25 to 40 stocks diversified by country, sub-sector and style (Value, GARP, Growth).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%|
|Performance Fee||10.00% (with High Water Mark)|
|Total expense ratio (TER)||2.17% (31.08.2022)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (31.08.2022, base currency EUR)
|No. of positions||46|
Top 10 positions
Breakdown by sector
Opportunities & Risks
- Owner and family-run businesses think in generations, not in quarters.
- Focus, a sense of responsibility, strong identification with the company, and personal financial commitment have a positive impact on the share price.
- 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 invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
- 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 may engage in derivatives transactions. The increased opportunities gained come with an increased risk of losses.
Review / Outlook
European small and mid caps, as measured by the MSCI Europe Small Cap ex-UK, reverted the positive July trend falling 5.9% in the month underpinned by more hawkish statements by Fed Chair Powell. Jackson Hole definitely buried the “Pivot” scenario and pulled the rug from risk appetite as Powell reaffirmed the Fed/USD hitting a 20-year low, falling below parity. Oil was lower with WTI down 9.2%. On a more positive side, soft commodities weakened, reverting to levels seen before the outbreak of the Ukraine war. Sector performance presented a patchy picture, with energy (+5.3%), financials (-0.7%) and communication services (-4.9%) holding up best while information technology (-10.7%), Healthcare (-8.1%) and consumer staples (-7.5%) lagged the most.
Against this backdrop, the fund fell 5.7% (EUR / B shares), a 23 bps outperformance versus its benchmark.
Main detractors in the month were Sopra Steria (-14.9%), Zur Rose (-32.5%) and Bakkafrost (-13.2%). Sopra Steria corrected along with the tech sector, on no specific news, despite very encouraging Q2 results beating consensus expectations. Zur Rose fell sharply on new concerns around the introduction of the e-prescription in Germany. Local media reported that Schleswig-Holstein, scheduled to start the program on September 1, was pulling out due to concerns about patient’s data protection. With some delay, the German government reacted, signaling a speedy roll-out and confirming the safe handling of e-scripts via pharmacy apps. Finally, on September 1, Zur Rose announced the issuance of a convertible and a capital increase which was fully subscribed, addressing the potential refinancing issue of 2023. After a strong ytd share price performance, Bakkafrost suffered some profit taking amid softening salmon prices and slightly disappointing Q2 figures.
Top performers in the month were U-Blox (+22.2%), Bankinter (+6.2%) and Schoeller Bleckmann (+8.1%). U-Blox, the Swiss specialist of IoT chips and modules, continued to enjoy a positive momentum thanks to a strong H1 beat and another guidance hike. Market demand is further accelerating across all regions and application sectors, and the new products have found very good response, boding well for further design wins. Bankinter partly reverted previous month’s losses, after the Spanish banking sector initially over-reacted to the unexpected decision by the government to impose an exceptional tax on “excess” earnings. Schoeller Bleckman, the Austrian specialist of directional drilling technology for the oil and gas industry, reported positive H2 results, revealing strong dynamics driven by a boost in spending for exploration and production outside of Russia.
“Everything is driven by macro, but no one really knows what the macro is going to be”. Interest rates are fundamental to the different market style returns. Low multiple stocks (value) gain over high multiple stocks (growth) when interest rate rise. In this cycle however, timing and magnitude of the interest rate moves are very hard to predict and the relative performance of value vs growth follows the near erratic ups and downs of rates from month to month. Growth stocks multiples have come down significantly since 2021 but remain well above historical average. Value stocks on the other hand might be cheap but valuation alone is not enough, especially if it comes with weak stability in the potential scenario of a future earnings recession. At present we feel the discussion of value vs growth is less relevant for alpha generation and we want to focus on cashflow resilience in the face of overall growth and inflation headwinds. Look for companies with high FCF yields and good cash conversion in attractive market niches.
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