Bellevue Sustainable Entrepreneur Europe (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’s aim is to achieve capital growth in the long term. The Fund invests in listed owner-controlled companies in Europe where an entrepreneur or a founding family holds at least a stake of 20% of the company’s voting rights. Long-term perspectives, a strong sense of responsibility, ethical behavior, keen environmental awareness and low debt are among the key success factors of sustainable owner-managed companies.
Indexed performance (as at: 20.01.2022)
NAV: CHF 290.40 (19.01.2022)
Rolling performance (19.01.2022)
|19.01.2021 - 19.01.2022||9.66%||16.11%|
|19.01.2020 - 19.01.2021||1.71%||-1.50%|
|19.01.2019 - 19.01.2020||10.66%||18.23%|
|19.01.2018 - 19.01.2019||-16.55%||-11.23%|
Annualized performance (19.01.2022)
|Since Inception p.a.||6.85%||6.90%|
Cumulative performance (19.01.2022)
Facts & Key figures
The fund’s aim is to achieve capital growth in the long term. The Fund invests in listed owner-controlled companies in Europe where an entrepreneur or a founding family holds at least a stake of 20% of the company’s voting rights. Long-term perspectives, a strong sense of responsibility, ethical behavior, keen environmental awareness and low debt are among the key success factors of sustainable owner-managed companies. The experienced management team, which is well connected in entrepreneurial circles, uses a fundamental bottom-up approach to identify the most attractive owner-managed companies with medium and large market capitalizations and constructs a portfolio of 35 to 45 stocks diversified across countries, sectors and style (Value, GARP, Growth). The Fund takes ESG factors into consideration while implementing the aforementioned investment objectives.Show moreShow less
Investment suitability & Risk
|Investment Manager||Bellevue Asset ManagementAG|
|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)||2.20% (31.12.2021)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Top 10 positions
Breakdown by sector
Opportunities & Risks
- Owner and family-run businesses think in generations, not in quarters.
- Economic sustainability: Low debt, high degree of innovation, stable growth and strong margins.
- Social responsibility, ethical behavior and keen environmental awareness are characteristic entrepreneurial values.
- 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.
- 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 invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
- 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
European equities as measured by the SXXR increased 5.6% in December. Shrugging off the new COVID restrictions, equities recovered from the Omicron-led market correction of November, with European markets outperforming the US and Asia. Despite this new COVID wave, business surveys remained high in December though declining sequentially. Flash Eurozone PMI Composite reached 53.4. With central banks normalizing their policy and rising inflation, bond yields climbed in most regions. Oil prices also rebounded – but remain below the peak of USD 83.5/barrel of late October. At sector level, Travel and Leisure (+13.5%), Basic Resources (+7.9%) and Food, Beverage and Tobacco (+7.9%) performed best, while Real Estate (+1.4%), Personal Care, Drug & Grocery Stores (+2.0%) and Technology (+2.9%) lagged the most. Against this backdrop, the fund increased 4.6%, 110 bps below its benchmark.
Main detractors in the month were Ipsen (-6.6%), ASM International (-2.0%) and Fineco Bank (-2.3%). Ipsen was subject to profit taking after having announced a licensing agreement with Genfit for elafibranor, a relatively expensive deal in a competitive segment but strongly reinforcing Ipsen’s pipeline in rare diseases. Following a strong share price performance in 2021 (+121%), ASM Int. share price eroded slightly. Newsflow from the industry remains however very supportive as shown by feedbacks coming from the recent Semicon West fair, pointing out that strong demand for wafers is extending into 2024, while supply will continue to lag, a favorable configuration for equipment manufacturers notably.
Top contributors in the month were Husqvarna (+12.9%), Duerr (+14.2%) and Ferrovial (+12.2%). Husqvarna published new targets during its CMD. Revenue growth was raised to 5% p.a., from 4-4.5% previously, with the ambition to double robotic mowers and to increase the share of electrified products from 38% to 67% within five years. The margin target was also increased to 13% from 10%. Following a convincing CMD earlier in November, Duerr benefited from a favorable combination of strong ST business momentum and positive LT perspectives, with products and service contributing to lowering the overall CO2 footprint. Ferrovial, which owns a 25% stake in Heathrow, benefited from the UK airport having updated its 2021 EBITDA guidance materially above its previous indication and the consensus expectations.
Looking into 2022, European equities have a real chance of outperformance. The domestic economy is performing well and recent macro surprise indexes are trending upwards. With 4% consensus GDP growth for 2022, Europe should outgrow the US, also accommodating a much more benign inflation expectation. This should translate into solid earnings growth and above average equity returns. We are less worried about margins coming under pressure owing to rising costs as companies do manage to pass these on without much pushback when inflation is pro-cyclical i.e. based on rising demand.
We continue to see big alpha opportunities in the value category as valuation dispersion is still near all-time highs. Our value bias did not reward us in the second half of the year, but 2021 marks a first move by investors away from rich consensus EPS growth towards value. Sustainability is taking an increasingly important role in the assessment of investment risk/rewards and you should expect more communication around this vast topic in the coming year as we look into corporate sustainability targets and their integration in our stock picking analysis.
In 2022 we want to continue to focus on affordable growth, value and quality, the latest being the namesake of our entrepreneur universe. Our stockpicking universe also boasts very strong balance sheets, giving these companies great means to deliver more shareholder value via growth, capex, R&D, M&A, dividends and not least favorable ESG dynamics. Many thanks to all our investors and all the best to you for 2022!
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