Bellevue Entrepreneur Swiss Small & Mid (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 listed owner-managed companies in Switzerland where an entrepreneur or a founder family holds at least a 20% of a company’s voting rights, thereby exerting significant influence. The Management Team pursues a fundamental, bottom-up approach in identifying the most attractive founder-controlled companies while maintaining an investment portfolio diversified by sub-sector and style (Value, GARP, Growth).
Indexed performance (as at: 03.12.2021)
NAV: CHF 215.82 (02.12.2021)
Rolling performance (02.12.2021)
|02.12.2020 - 02.12.2021||23.77%||20.05%|
|02.12.2019 - 02.12.2020||20.15%||7.93%|
|02.12.2018 - 02.12.2019||13.43%||18.20%|
|02.12.2017 - 02.12.2018||-16.29%||-9.98%|
Annualized performance (02.12.2021)
|Since Inception p.a.||11.52%||11.26%|
Cumulative performance (02.12.2021)
Facts & Key figures
The Fund invests in listed owner-managed companies in Switzerland where an entrepreneur or a founder family holds at least a 20% of a company’s voting rights, thereby exerting significant control and 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 executives throughout the sector. It pursues a fundamental, bottom-up approach in identifying the most attractive founder-controlled companies with a small, mid as well as large market capitalization while maintaining an investment portfolio of 25 to 40 stocks diversified by 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%|
|Total expense ratio (TER)||2.09% (30.11.2021)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (30.11.2021, base currency CHF)
|No. of positions||49|
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 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.
- 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
Swiss small and mid caps, as measured by the SPIEX, fell 5% in September. Equity markets around the globe experienced some profit taking (SXXR -3.3%, S&P500 -4.8%, SPI -5.7% in CHF), driven by the risk of contagion from the potential default of the Chinese real estate giant Evergrande as well as inflation risks and a more hawkish Fed. Interest rates rose quickly and oil prices hit a new high at USD 79 pba (+8% in the month). Macro figures were uninspiring on the back of supply chain tightness, with the EU composite PMI index in September falling 3 points on the previous month (to 56.1 points vs. 58.5 expected), the lowest in 5 months, whereas the US PMI dropped by 0.9 points to 54.5. Against this backdrop, cyclicals and value outperformed defensives/growth, which typically have longer duration and higher negative sensitivity to LT rates. Communication services (+14.4%), financials (-2.2%) and healthcare (-3.1%) performed best, while information technology (-11%), materials (-9.8%) and real estate (-5.4%) lagged the most.
Against this backdrop, the fund lost 4.7% (CHF / B shares) in September, outperforming its benchmark by 35 bps. This brings ytd return to 19.8%, i.e. an outperformance of 193 bps vs the SPIEX.
Top 3 contributors in the month were Flughafen Zurich (+9.7%), Aryzta (+9.6%) and VZ Holding (+6.8%). 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 announcement help the sector. Aryzta also benefitted from the improved COVID environment, leading to the anticipation of a more positive Q4 trading (July end). VZ Holding caught up somewhat with the sector after recording strong H1 results in August. New clients increased 30%, with net new money up 52% beating consensus by CHF 1 bn. This bodes well for future earnings even though the pace of asset increase should slow in H2 on the back of less strong market performances.
Main detractors in the month were Schindler (-15.1%), Kuehne & Nagel (-4.7%) and Huber & Suhner (-11.9%). Schindler was heavily under pressure following both the Evergrande crisis, which could impact negatively the Chinese business, and rising interest rates. Kuehne & Nagel, which continues to benefit from an ongoing strength in freight rates, experienced profit taking in the rotation out of growth stocks. Our recent meeting with the management suggested the strength in rates should not abate short term and is likely to be sustained throughout 2022, suggesting some further upside to consensus estimates. Huber & Suhner suffered from the placement of 10% stake of its long time shareholder Metrohm. We continue to like the investment case, based on the company’s potential into 5G and electro-mobility and it’s attractive valuation in the Swiss industrial space.
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 level of demand. JIT supply chains are not build to cope with this 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 initiated a new position in LastMinute.com. The online group should benefit from the return of leisure and tourism. We expect top line to be back to 2019 levels by 2022 with a better profitability thanks to lower costs. The sector should also further consolidate. In view of its high growth profile, strong profitability and good cash generation, we see the current valuation as undemanding.
Past performance is not a reliable indicator of future results and can be misleading. As the subfund 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