Data as of 15/02/2019

Risk level

Low

High

Recommended investment horizon : > 10 years

Average annual performance since launch

12,89 %


Performance as at 15/02/2019

FUNDS
2016 9,51 %
2017 20,59 %
2018 0,87 %
Since 01/01/2019 11,89 %
Over the last 12 months 10,21 %
Over 3 years 61,11 %
Since launch 48,34 %
Asset breakdown
Equities 98,26 %
Cash 1,74 %
Breakdown by currency
USD 97,42 %
CAD 2,47 %
EUR 0,12 %
Main positions
Resmed Inc 3,42 %
Check Point Software Technologies Ltd 3,07 %
Cognex Corp 3,02 %
Ulta Beauty Inc 3,00 %
Tractor Supply Co 2,87 %

Investment objective and policy

BL-American Smaller Companies invests up to 80% of its assets in shares of American companies with a market capitalization below 20 billion USD. Selected companies have a well-defined business model with a clear market strategy. The fund invests in companies with a strong competitive advantage, showing a sustainable superior return profile and generating high and consistent levels of free-cash flow. In combination with a solid financial situation. Investment decisions are based on strict valuation and quality criteria.

Management report - 4th Quarter 2018

The final quarter of 2018 was not good for equity markets. Investors have had to contend with rising US central bank interest rates, a sharp slowdown in eurozone business confidence, weaker Chinese growth and rising geopolitical concerns (including Brexit, Italian politics and the ongoing trade conflict between the US and China). This all proved an indigestible cocktail for investors. In this environment the BL-American Smaller Companies Fund (retail share class capitalization net of fees in USD) outperformed its Benchmark, the MSCI US Small + Mid Cap NR USD Index, by 5,30%. In absolute terms, the fund showed a negative performance of 12,15%. During the quarter, we initiated a position in Masimo. The company is a medical device business focusing on noninvasive patient monitoring. It began by developing superior signal processing algorithms to measure blood oxygenation levels through pulse oximetry and has expanded this expertise into a wide range of measurements and applications. The recent settlement and joint venture agreement with Philips represents one of the most significant milestones in the company's history. The company has built a strong moat for itself in patient monitoring through strong intangible assets protected by patents and switching costs that have been embedded in its installed base. A strong top-down push to integrate Masimo sensor technology in Philips' leading line of patient monitors will expand Masimo's share of the installed base while upgrading customers to the company's next-generation rainbow SET. This should help to not only better protect its intangibles-based moat source, but also raise the bar for competitors looking to catch up. On the other hand, we sold Stericycle and Hain Celestial. Stericycle trimmed once more their 2018 guidance, which implies a weaker Q4 2018. We expect 2019 to be another transition year with EPS likely declining further. In our view, the company continues to face numerous challenges and visibility into forecasts remains low. Hain's lackluster near-term sales/operating outlook and uncertainty around the scope and timing of its turnaround plan, combined with the likelihood of a significant cut to FY2019 guidance from the recently hired CEO, convinced us to sell the position during the month. The company's portfolio of healthier brands, turned out to be less competitive then we though at the time we took a position. The top 5 contributors in the quarter were Church & Dwight, Lancaster Colony, Lamb Weston, McCormick and Clorox. The top 5 detractors were Align Technology, Welbilt, Cognex, Laboratory Corp and Sensient Technologies.

General information

Net Asset Value 
Calculated Every business day
NAV class B capitalisation shares (15/02/2019) 148,80 USD
CODES Internal capitalisation code : 29339088
ISIN capitalisation code : LU1305478775
WKN capitalisation code : A1421A
Net assets (million) 234,89 USD
Launch date 13/11/2015