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: 16.05.2022)
NAV: EUR 374.15 (13.05.2022)
Rolling performance (13.05.2022)
|12.05.2021 - 13.05.2022||-6.74%||1.45%|
|13.05.2020 - 12.05.2021||43.97%||34.02%|
|13.05.2019 - 13.05.2020||-14.92%||-8.14%|
|11.05.2018 - 13.05.2019||-12.87%||-2.32%|
Annualized performance (13.05.2022)
|Since Inception p.a.||8.77%||9.08%|
Cumulative performance (13.05.2022)
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.)||0.05%|
|Total expense ratio (TER)||2.19% (29.04.2022)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (29.04.2022, base currency EUR)
|No. of positions||45|
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, declined 0.7% in April, a more robust performance compared to very weak global and US markets (SPX -8.8% in USD). 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 EZ 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 terms of sector performance, defensives fared better with food, beverage and tobacco (+5.8%), personal care, drug and grocery stores (+4.1%) and utilities (+2.8%) performing best, while technology (-7.1%), financial services (-6.4%) and real estate (-5.9%) lagged the most.
Against this backdrop, the fund declined 1.1% (EUR / B shares), underperforming its benchmark by 38 bps.
High growth and tech companies suffered the most. Bottom 3 performers in the month were BESI (-24.5%), Carl Zeiss (-18.1%) and ASM International (-12.7%). BESI, the Dutch semi equipment manufacturer, reported Q1 revenues and profitability in line with forecasts, but the order intake disappointed due to both China lockdowns and a seemingly weak innovation cycle with Telco clients. Both are likely to normalize through 2022/23, while the announced sector Capex roadmap confirms good growth ahead. With net cash at hands, EBIT margin of 45% and hybrid bonding technology ramping up, we see significant upside potential at valuation <12x EBIT. Carl Zeiss, the German medtech company, was weak on supply chain and profitability concerns. ASM Int. also suffered from market rotation away from tech and high growth names while it delivered solid Q1 results marked notably by record orders confirming increasing production volumes and higher adoption of ALD from foundries.
Top 3 contributors in the month were Essity (+17.8%), Mowi (+10.9%) and Homeserve (+17.3%). Essity provided some relief following concerns about margins, with a Q1 EBIT 21% above consensus and organic sales growth of 14.6%, beating forecasts by 4 pp. This clearly demonstrated the group’s pricing power and ability to protect margins. The Norwegian salmon producer Mowi delivered Q1 results marked by the doubling of its EBIT with salmon prices reaching new highs. After having risen 25% in March on a possible PE takeover, Homeserve continued its upward trend after the Board officially entered into discussions with Brookfield Asset Management. The probability of a takeover has now increased considerably, and we would expect interest from other PE bidders.
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 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