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: 24.06.2022)
NAV: CHF 263.25 (23.06.2022)
Rolling performance (23.06.2022)
|23.06.2021 - 23.06.2022||-20.92%||-11.75%|
|23.06.2020 - 23.06.2021||41.26%||20.72%|
|21.06.2019 - 23.06.2020||11.41%||5.67%|
|22.06.2018 - 21.06.2019||-8.43%||15.94%|
Annualized performance (23.06.2022)
|Since Inception p.a.||6.52%||4.92%|
Cumulative performance (23.06.2022)
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, Küsnacht|
|Custodian||RBC Investor Services Bank, Zürich|
|Fund Administrator||PMG Investment Solutions AG, Zug|
|Year end closing||31. Dec|
|Subscription Fee (max.)||5.00%|
|Total expense ratio (TER)||1.58% (31.05.2022)|
|Legal form||Swiss Fund|
Key data (31.05.2022, base currency CHF)
|No. of positions||45|
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, fell 4.4% in May, in a market still dominated by worries around inflation, China lockdowns, geopolitics and the fear of further tightening. The minutes of the recent Fed meeting hinted at 50 bps hikes at the upcoming meetings in June and July, while ECB Christine Lagarde explicitly announced 25 bps hikes in July and September, followed by a gradual normalization of rates. So far the scenario of an imminent recession is not supported by economic data. In the US, retail sales and industrial production surprised positively, while in the Eurozone consumer confidence fell while business surveys remained on healthy levels. New orders PMI fell to 53 in May from 55 in April. Sector wise, financials (+0.85%), communication services (-1.90%), and real estate (-3.2%) performed best, while information technology (-7.4%), consumer staples (-7.4%) and consumer discretionary (-6.4%) lagged the most.
Against this backdrop, the fund fell 5.5% (CHF / A shares) in the month, underperforming its benchmark by 115 bps.
Main detractors in the month were Daetwyler (-26.2%), Swissquote (-25.2%) and Lem Holding (-21.2%). Daetwyler profit warned for the current fiscal year, pointing at sharply increased input costs, ongoing shortage of electronic components in its auto segment and lockdowns in China. Swissquote was under pressure in anticipation of weaker trading commission related to equities and cryptos. We see no reason to change our stance regarding the group’s ability to generate strong levels of net new money and find the current valuation attractive. Lem released FY results above expectations and revised its guidance, but announced that H1 revenues will likely decline yoy due notably to supply chain constraints. With 2021 profitability much higher than expected, the transitory slowing down of H1 should only have a modest impact on bottom line consensus expectations. Longterm trends underpinned by the electrification of the automotive and industrial sectors remain unchanged.
Top 3 contributors in the month were Aryzta (+13.8%), U-Blox (+11%) and Clariant (+9.4%). Aryzta published a strong set of Q3 figures, with an organic growth of 23%, clearly surpassing consensus expectations of 15% and also increased its FY21/22 organic guidance to 14-16% from 12-14%. The group continues to succesfully adjust its prices, and at the same time, surprises with better volume growth. Next catalyst will be the CMD on June 8 and the update on the short-to-mid-term profitability outlook. U-Blox raised its 2022 guidance on the back of persisting strong demand, rapid conversion of its large backlog and operating leverage. We see great upside still as consensus remains skeptical. Valuation multiples are very attractive at ca. 6.5x EBIT2023. Clariant announced the expiry, after the June AGM, of the governance agreement with their main shareholder SABIC. As a result, SABIC is no longer bound not to cross the 33% threshold that would trigger a takeover offer according to Swiss market regulation. This situation undoubtedly raises M&A speculation and immediately led to a sharp increase in the share price.
Following the war on Ukraine market dislocations have been massive and very heterogeneous from sector to sector. Overall, inflation remains the topic. From being negligible, then higher but transitory, inflation has quickly reached levels not seen since the 80s. While energy prices, raw materials or shipping costs are likely to normalize at some point, we also see factors, such as reshoring or the increased need for renewables likely to impact in the longterm. If sequentially we could be close to peak inflation, there are reasons to believe the new normal is higher for longer. In this context we favor companies with strong pricing power, high margin, little Capex needs and strong balance sheet. Valuations matter. The bubble has burst in high growth stocks with corrections of up to 50%, cyclicals both industrials and consumers trade at historic depressed valuations and small and mid caps have underperformed offering selectively attractive entry levels.
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