Bellevue Entrepreneur Switzerland (CH)
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 sector and style (Value, GARP, Growth).
Indexed performance (as at: 03.12.2021)
NAV: CHF 337.70 (02.12.2021)
Rolling performance (02.12.2021)
|02.12.2020 - 02.12.2021||25.96%||20.06%|
|02.12.2019 - 02.12.2020||18.84%||3.62%|
|02.12.2018 - 02.12.2019||15.24%||18.67%|
|02.12.2017 - 02.12.2018||-13.68%||-1.26%|
Annualized performance (02.12.2021)
|Since Inception p.a.||8.46%||6.06%|
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, Küsnacht|
|Custodian||RBC Investor Services Bank, Zürich|
|Fund Administrator||PMG Fonds Management AG, Zürich|
|Year end closing||31. Dec|
|Subscription Fee (max.)||5.00%|
|Total expense ratio (TER)||1.58% (30.11.2021)|
|Legal form||Swiss Fund|
Key data (30.11.2021, base currency CHF)
|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 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 equities, as measured by the SPI, dropped 5.7% in September. Equity markets around the globe experienced a strong profit taking (SXXR -3.3% in EUR, S&P500 -4.8% in USD), 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 (+0.9%), consumer discretionary (-1.8%) and consumer staples (-2.8%) performed best, while technology (-10.3%), materials (-10%) and healthcare (-7.1%) lagged the most.
Against this backdrop, the fund lost 4.5% (CHF / A shares) in September, outperforming its benchmark by 125 bps. This now brings ytd return to 20.3%, i.e. an outperformance of 660 bps vs the SPI.
Top 3 contributors in the month were Flughafen Zurich (+9.7%), Aryzta (+9.6%) and Burckhardt Compression (+4.3%). 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 benefited from the improved COVID environment, leading to the anticipation of a more positive Q4 trading (July). Burckhardt Compression benefited from the good performance of all energy-related stocks due to rising oil prices and the sector rotation in favor of value stocks. In addition broker reports highlighting the good growth prospects of the hydrogen market helped the sentiment on the name.
Main detractors in the month were Huber & Suhner (-11.9%), Logitech (-11.1%) and Sika (-10.1%). 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. Logitech was weak along the IT space (-10% in Europe) in the sector rotation away from growth. The company is expected to report its Q2-21/22 figures on October 25. The current share price, implying an EV/EBITDA for the current fiscal year of ca 15x, puts the stock nearly in value territory when considering the group’s mid-term growth profile. Sika, the super well-managed leading construction chemicals company with intact M&A track record, asset light, diversified by customers and end markets and strong ESG credentials also fell victim of the rotation.
PMIs are weakening and inflation is rising both driven by demand/supply unbalances 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-19 recedes and output is debottlenecked. We have initiated a new position in Medmix, a spin-off from Sulzer. We see Medmix as an interesting niche provider of high-precision delivery devices/applicators for the healthcare, beauty and industrial markets, with solid growth potential.
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 subfund, thus the performance of a benchmark is not a reliable indicator of future performance of the subfund 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.Show moreShow less