AI Shares

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

Explained in 90 seconds

Please find a more detailed description of share classes here.

Investment Focus

ISIN-No. LU2811956387

The Fund invests in small capitalized, listed owner-managed companies in Europe where an entrepreneur/founder family holds at least a 20% of a company’s voting rights, thereby exerting signif. influence. The team pursues a fundamental, bottom-up approach in identifying the most attractive founder-controlled companies while maintaining an investment portfolio diversified by country, sub-sector and style (Value, GARP, Growth).

Indexed performance (as at: 16.07.2024)

NAV: EUR 122.57 (15.07.2024)

01 Jan 2010 - 01 Jan 2010

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AI-EUR

Benchmark

Cumulative performance (11.07.2024)

	AI-EUR	Benchmark
1M	-1.15%	0.52%
YTD	n.a.	n.a.
1 year	n.a.	n.a.
Since Inception	-2.07%	-1.18%

Facts & Key figures

Investment Focus

The fund’s aim is to achieve capital growth in the long term and actively invests in small capitalized, listed owner-managed companies in Europe where an entrepreneur or a founder family holds at least a 20% of a company’s voting rights. The qualities of these companies – a focused business model, fast decision-making processes 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 entrepreneurs throughout the sector. It pursues a fundamental, bottom-up approach in identifying the most attractive foundercontrolled companies with a small market capitalization while maintaining an investment portfolio of 35 to 45 stocks diversified by country, sub-sector and style (Value, GARP, Growth). The fund takes ESG factors into consideration while implementing the aforementioned investment objectives.Show moreShow less

Investment suitability & Risk

SRRI

Low risk

High risk

The Fund’s investment objective is to generate attractive and competitive capital growth in the long term. It is therefore particularly suited to investors with an investment horizon of at least 5 years who want to enhance their portfolio diversification with investments in European small capitalized founder-controlled companies. The Fund displays the typical risks associated with equity investments in European small caps.

General Information

Investment Manager	Bellevue Asset Management AG
Custodian	CACEIS BANK, LUXEMBOURG BRANCH
Fund Administrator	CACEIS BANK, LUXEMBOURG BRANCH
Auditor	PWC, Luxembourg
Launch date	30.06.2011
Year end closing	30. Jun
NAV Calculation	Daily "Forward Pricing"
Cut of time	15:00 CET
Management Fee	0.90%
Subscription Fee (max.)	5.00%
Performance Fee	10.00% (with High Water Mark)
ISIN number	LU2811956387
Valor number	135041307
Bloomberg	BFLESAI LX
WKN	A40D27
Total expense ratio (TER)	2.19% (31.05.2024)

Legal Information

Legal form	Luxembourg UCITS V SICAV
SFDR category	Article 8

Portfolio

Top 10 positions

Subsea 7

Wartsila

Laboratorios Rovi

Swissquote

Burckhardt Compression

Do+Co Restaurant + Catering

Bankinter

Flughafen Zürich

Fuchs

Husqvarna

3.9%

3.4%

3.3%

3.2%

3.1%

3.0%

2.9%

2.8%

Market capitalization

0 - 1 bn

1 - 2 bn

2 - 5 bn

5 - 15 bn

Others

16.7%

16.8%

47.7%

13.8%

5.0%

Geographic breakdown

Spain

Switzerland

France

Sweden

Finland

Germany

Italy

Norway

Austria

Netherlands

Ireland

Portugal

Others

Cash

15.2%

15.1%

13.3%

10.1%

8.4%

7.7%

6.2%

6.0%

5.3%

2.7%

1.5%

0.9%

5.0%

Breakdown by sector

Industrials

Financials

Materials

Consumer Staples

Healthcare

Consumer Discretion.

Energy

Communication Services

Real Estate

Utilities

Others

Cash

26.8%

14.0%

13.3%

9.4%

6.6%

6.5%

5.3%

5.0%

3.4%

2.7%

1.2%

0.9%

5.0%

Benefits & Risks

Benefits

Above-average top line growth driven by high innovation and strong pricing power.
Higher operating margins on the back of high market share ("Champion in the niche") combined with good cost discipline.
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.

Risks

The fund actively 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 invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
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 may engage in derivatives transactions. The increased opportunities gained come with an increased risk of losses.

Review / Outlook

European small and mid caps, as measured by the MSCI Europe Small Cap ex-UK, fell 3.7% in June (SXXR -1.2%) following the surprised announcement of snap legislative elections in France. French equities sold off (CAC 40 -6.2%) and the 10Y Franco-German spread rose 30bps, its largest widening since the Euro sovereign crisis. As expected the ECB lowered its deposit rate by 25bps to 3.75%, bringing the score to four G10 central banks having cut rates this year. The US May CPI reading displayed the slowest monthly core rate since 2021, cementing the expectations of a rate cut in the FED by the end of the year. After 7th consecutive increase, the Eurozone flash PMI dropped to 50.8 in June from 52.2 in May, with both Services (52.6 vs 53.2) and Manufacturing PMIs (46.0 vs 49.3) declining sequentially. In term of sectors, defensives outperformed cyclicals with Health Care (-0.8%), Insurance (-1.0%) and Food, Beverage and Tobacco (-1.7%) performing best while Media (-9.4%), Consumer Products and Services (-8.7%), Automobiles and Parts (-8.2%) lagging the most.

Against this backdrop, the Fund declined by 4.0% (EUR / B shares), underperforming its benchmark by 31 bps. This bring the performance to 11.4% for H1 2024, a 702 bps beat vs. the benchmark.

Top detractors in the month were Nordex (-20.7%), Sopra Steria (-16.7%) and TF1 (-19.3%). After a strong run and encouraging Q1 results consolidating further the group’s 8% EBITDA mid-term margin scenario, Nordex suffered from profit taking in a risk off market. French names were generally under pressure. In absence of visibility regarding the outcome of the vote, we reduced our exposure to France, taking profits of Neoen and French TVs. If elected, the far right party RN announced its intention to privatize the French state TV. This operation looks highly unlikely given both the ca. EUR 2.6bn operating losses the State TV would generate in absence of subventions and the size of the national TV market (EUR 3bn). Still, this news impacted severely TF1 now trading on 3.8x 24 EBIT with a dividend yield of 8%. Sopra Steria also suffered indirectly from the profit warning of its No1 client Airbus impacted by recurring supply chain issues.

Top performers in the month were Do & Co (+18.7%), Besi (+15.7%) and Subsea 7 (+3.5%). Do&Co, the Austrian catering business, delivered strong results underpinned by both its Airline and Event businesses. The company now expects 2024/25 revenues to exceed EUR 2bn, implying a minimum growth rate of 10%. BESI held a capital market day where the company slightly increased its longterm Hybrid Bonding targets, underpinned notably by the growing demand for AI accelerators, a major driver for advanced packaging and HBM technologies. Subsea 7 benefited from further big awards, pointing to a record Q2 order intake probably above USD 3.5 bn (btb 1.5x) and a backlog > USD 12 bn leading to hopes of a potential increase in top line guidance. The Q2 results are also anticipated to show good earnings dynamic, both YOY and sequentially as well as robust FCF. This long and profitable cycle for both conventional and renewables provide backlog visibility for many years ahead. Valuation is still below longterm average at 4x EV/EBITDA 2025.

After a total return of 190% over the last 24 months we have divested our Cargotec position. Casimir Lindholm was appointed CEO in April 2023 after the unsuccessful merger plan with Konecranes and successfully saw through the demerger of Cargotec’s port business Kalmar, releasing the conglomerate discount burdening the historic share valuation. While we like Cargotec’s Hiab’s business and excellent track record, we take a breather to reconsider after this extraordinary outperformance phase.

As we write the veil on the “deuxieme tour” has been lifted and France is in for a coalition government of some shape or form. Extreme scenarios – right or left with a majority – have been avoided and markets should experience a mild relief.

Dokumente

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

ESG

Awards

Co-Lead Portfolio Manager
Birgitte Olsen
Birgitte Olsen, CFA, Senior Portfolio Manager Equities Europe, joined Bellevue Asset Management in 2008. Prior to that, she was Deputy Head of Portfolio Management Equities Europe at Generali Investments in Cologne for more than nine years. She worked as a Fund Manager (DE and Scandinavia) at Vontobel Asset Management in Zurich in 1997 and 1998. Birgitte Olsen started her career in the financial industry in 1994 as a sell-side analyst at Bank am Bellevue covering the insurance and pharmaceutical sectors. She holds a degree in Finance and Accounting from the University of St. Gallen.
Co-Lead Portfolio Manager
Laurent Picard
Laurent Picard joined Bellevue Asset Management in 2018. Prior to that, he was an Financial consultant for start-ups in the internet/tech sector. From 2009 to 2016 he was a senior equity research analyst for media at Société Générale, having joined from UBS Warburg, where he was an equity analyst for IT Services and Software and a strategist specialized on the French markets. Laurent Picard graduated from Paris X University and ESSEC business school and holds a Master of Financial Techniques.
Senior Product Specialist
Loreno Ferrari
Loreno Ferrari joined Bellevue Asset Management in 2018 and is a Senior Product Specialist. Previously, he spent 3 years as an Investment Specialist at UBS Asset Management and 8 years at Zürcher Kantonalbank, most recently as an Investment Advisor. Loreno holds a Bachelor of Science (BSc) in Business Administration (UAS) Zurich with a Specialization in Banking and Finance. He is a Certified International Investment Analyst (CIIA) and holds the Certificate in ESG Investing from CFA Institute.