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
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: 03.12.2021)
NAV: EUR 395.55 (02.12.2021)
Rolling performance (02.12.2021)
|02.12.2020 - 02.12.2021||22.92%||26.13%|
|02.12.2019 - 02.12.2020||13.27%||10.89%|
|02.12.2018 - 02.12.2019||12.05%||15.11%|
|02.12.2017 - 02.12.2018||-18.80%||-8.29%|
Annualized performance (02.12.2021)
|Since Inception p.a.||11.67%||12.65%|
Cumulative performance (02.12.2021)
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)||2.22% (30.11.2021)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (30.11.2021, base currency EUR)
|No. of positions||52|
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 declined -4.2% in August, underperforming the broader indexes (SXXR -3.3%). After concerns about the potential collapse of the Chinese real estate giant Evergrande, investor’s attention shifted to inflation risks and a more hawkish Fed with yields rising quickly. Commodities were also on the rise witness oil peaking at USD 79 pba, ahead of pre-crisis levels. In term of macro surveys, the Eurozone PMI Composite declined to 56.1 in September from 59.0 in August, with both services (56.3) and manufacturing (55.6) sequentially decelerating but remaining well in expansion territory. In terms of sectors, cyclicals and value outperformed defensives/growth, which typically display higher negative sensitivity to rising LT rates. Energy (+9.5%), communication services (+1.4%) and financials (+0.6%) performed best while real estate (-9.2%), information technology (-7.9%) and materials (-6.2%) lagged the most.
Against this backdrop, the fund declined 4.3% (EUR / B shares), 8 bp below its benchmark.
Main detractors in the month were Wartsila (-13.0%), Duerr (-10.7%) and Alten (-8.9%). Wartsila, Finish manufacturer of boat engines and power generators, suffered some profit taking following a strong share price performance. Despite strength in service orders, demand for new equipment is slow to recover and the new CEO offered little visibility. We expect some more information in the upcoming November CMD. Duerr suffered sentiment wise from the ongoing difficulties of the auto sector as well as supply chain bottlenecks and input cost inflation. Alten, the French R&D outsourcing specialist, published H1 results marked by a faster than expected rebound of profitability, driven by a high utilization rate. Our recent company contact confirmed that the level of activity remains very healthy, with no indirect impacts from supply chain issues. Alten’s main challenges remain recruitment and the control of wage costs, although rising salary inflation is mostly passed through to customers. After a very strong performance the shares consolidated.
Top performers in the month were Subsea 7 (+16.7%), Unicaja (+15.3%) and Flughafen Zürich (+9.8%). Subsea 7, the Norwegian energy services company benefited from a more positive sentiment around higher oil prices inducing a good level of commercial activity as shown by the USD 750 mn EPCI contract announced at the end of the month. In a more favorable interest rates environment the Spanish bank Unicaja, has been gradually catching up with peers as the merger process with Liberbank is progressing. This should underpin a positive earning outlook, supported by EUR 150 mn costs synergies. Flughafen Zürich, like most travel and leisure stocks, traded firmer. Short-term air traffic volumes indications have been positive and we expect this trend to continue until year end in to the autumn school holidays and the Christmas season. Starting November, airlines will have to operate at least 50% of their 2019 capacity, in order not to lose airport slots. Also, higher vaccine rates and Merck’s new Covid treatment.
PMIs are weakening and inflation is rising both driven by demand/supply in-balances and supply chain disruptions. Society has been more or less switched off during 18 months and the system needs to adjust to a new and higher level of demand but JIT supply chains are not able to cope with such a kick-start. Spot inflation will normalize over time, although the absolute level should be above pre-pandemia. We do not adhere to a stagflation scenario and expect growth to return driven by large pent-up demand as COVID recedes and output is debottlenecked. During the month, we have initiated a new position in BE Semiconductor, a Dutch wafer fab equipment maker, specialized in die attach and packaging. With H1 21 EBIT margin of 41%, BESI is highly profitable and has cash on its balance sheet. Currently trading on 13.5x 2022 EV/EBIT, a 3 year low, the stock is attractively valued in the semi space.
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