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: 16.05.2022)
NAV: CHF 177.00 (13.05.2022)
Rolling performance (13.05.2022)
|12.05.2021 - 13.05.2022||-10.92%||-5.63%|
|13.05.2020 - 12.05.2021||43.10%||34.66%|
|13.05.2019 - 13.05.2020||5.21%||-1.62%|
|11.05.2018 - 13.05.2019||-16.45%||-8.70%|
Annualized performance (13.05.2022)
|Since Inception p.a.||6.59%||7.57%|
Cumulative performance (13.05.2022)
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)||2.07% (29.04.2022)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (29.04.2022, base currency CHF)
|No. of positions||47|
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 3.9% in April. Geopolitical tensions, growth and inflation scare dominated, with China’s lock downs further weakening the top down picture. Inflation data reached new records in the US and Eurozone and government bond yields kept rising while central banks become more hawkish. In the Eurozone Q1 GDP increased 0.4% qoq in line with expectations but surprisingly declined 1.4% on an annualized pace in the US. Flash Eurozone PMI rose to a 7-month high of 55.8 in April from 54.9 in March, led by services (57.7 vs 55.6) which benefited from loosen COVID restrictions, and helped offset the waning manufacturing output (50.4 vs 53.1), impacted by production curbs and ongoing supply constraints. In Switzerland, real estate (+1.6%), utilities (+1.4%), and consumer staples (+1%) performed best, while healthcare (-12.1%), communication services (-5.5%) and materials (-3.9%) lagged the most.
Against this backdrop, the fund dropped 4.1% (CHF / B shares) in the month, under-performing its benchmark by 26 bps.
Main detractors were Straumann (-21.2%), Bachem (-15.4%) and VZ Holding (-15.3%). Straumann suffered from fears of demand slowdown, given that dental is the most consumer exposed segment in the medtech space. The group reported a strong Q1 organic growth of 27.2%, driven by healthy patient flow and market share gains. The unchanged guidance of organic growth in the low DD range nevertheless failed to impress. Bachem experienced profit taking. Mid term targets for 2022/26 point to an average 15% sales growth p.a. and an improvement in EBIT margins. In 2022 the company is allegedly facing some product portfolio fluctuations, which should lead to a slightly lower ytd growth vs. the MT target. As a result, market expectations were reset. The investment case remains solid however, with an excellent visibility. VZ Holding was weak during the month on no news. We continue to appreciate the strong fundamentals.
Top 3 contributors in the month were Polypeptide (+17.4%), Kuehne & Nagel (+4.6%), and Helvetia Holding (+4.4%). Polypeptide regained the attention of investors, thanks to its defensive growth characteristics. With one of the broadest portfolio among the peptide CDMO players, an attractive late stage pipeline, as well as the rising outsourcing trend, Polypeptide is very well placed to outperform the underlying peptide drug market, itself growing at ca. 7% p.a. Kuehne & Nagel reported Q1 results significantly ahead of expectations as yields further increased in the sea freight division. The current war in Ukraine and the new lockdowns in China, result in supply chains disruptions and port congestions, both beneficial to Kuehne & Nagel. We believe that the current situation will continue to provide tailwinds for the freight forwarding industry for at least a couple of quarters. Helvetia Holding reported robust results in line with expectations at the end of March, but surprised positively with a more generous dividend than expected, representing a yield close to 5%.
After a rebound in March, equity markets are finally catching up with reality. Supply driven issues like availability of goods, commodity price inflation etc. slowly shift to demand side worries around consumer demand and risk to growth. Market sentiment is poor and better than feared Q1 earnings delivery did nothing to change this. The growth category has taken a serious beat with many names down 50% to 60% since the highs of 2021. On the aggregate, sentiment and positioning seem not bearish enough yet for markets to stage a reversal. We remain well diversified across all styles and sectors, favoring quality companies inherent to our Entrepreneur universe squaring strong balance sheets, high margins and capital returns. These times ask for experienced stock picking along the main themes of rising inflation, slowing growth, post COVID reopening, energy dependence and ESG.
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