Luxembourg
16 Boulevard Royal – L-2449 Luxembourg
 
Monday to Friday
8 am to 5 pm


BL American Smaller Companies

Equity funds

Data as of 20/05/2020

Risk level

Low High
Recommended investment horizon : > 10 years

Performance

Average annual performance since launch 11,17 %

Performance as at 20/05/2020

FUNDS
2017 20,59 %
2018 0,87 %
2019 27,09 %
Since 01/01/2020 -4,31 %
Over the last 12 months 5,18 %
Over 3 years 35,17 %
Since launch 61,23 %
Breakdown by currency
USD 97,34 %
CAD 2,39 %
EUR 0,28 %

Strategy

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 - 1st Quarter 2020

This first quarter has not been an easy one for investors. While it was already clear that we were in the later stages of the economic cycle, nobody could have predicted at the start of this year that large parts of the global economy would be brought to an abrupt halt by the COVID-19 pandemic. 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 10,46%. In absolute terms, the fund showed a negative performance of 18,18%. The Fund's performance has been as we would have expected, hoped and predicted. The sell-off has particularly affected high beta, low quality, low growth and lowly valued companies while low beta, high quality and high growth companies have better resisted. Next to our focus on profitable, high-quality companies that can reinvest their cash flows at high rates of return, it has been the "consistent earners" category, with many consumer staples companies, that once again reduced to overall volatility of the fund. Our bias towards mid-caps also helped to be more resilient in the down turn vs the small-cap segment. During the first quarter, we initiated a position in Albany International, MSCI, Verisk Analytics and Equifax: Albany International is an emerging aerospace composite company with high growth, supported by the cash cow and industry-leading paper machine clothing business. MSCI is a leading provider of index data and licenses, financial analytics, and ESG ratings. The company enjoys competitive advantages across all three segments, but particularly across Indices and Analytics Verisk Analytics is a vertically oriented, data asset-centric, data-analytics business. The company is the most well liked monopoly described as the 'water to the Insurance industry'. Equifax is a global information solutions company that uses unique data, analytics, technology and industry expertise to help clients make better decisions. On the other hand we sold IFF (the pending DuPont's Nutrition and Biosciences transaction is creating a large cap conglomerate), Welbilt and Sally Beauty. The top 5 contributors in the quarter were MSCI, Clorox, Masimo, Verisk Analytics and Dominos Pizza. The top 5 detractors were Welbilt, LKQ, Lamb Weston, Middleby, and Advance Auto Parts.

General information

Net Asset Value 
Calculated Every business day
NAV class B capitalisation shares (20/05/2020) 161,73 USD
CODES Internal capitalisation code : 29339088
ISIN capitalisation code : LU1305478775
WKN capitalisation code : A1421A
Net assets (million) 332,75 USD
Launch date 13/11/2015