The family dimension
Family businesses are based on specific expertise and a business culture underpinned by unique family and social values. Their shareholders are interested in developing and passing on a future-oriented enterprise.
Family businesses have a responsible long-term strategy focusing on resilience rather than growth at any price. They are low-leveraged and offer attractive long-term returns with measured risk.
BL European Family Businesses Fund Manager
Head of BLI’s European equities strategy
The profile of family businesses fits perfectly with BLI's investment approach. We place paramount importance on entrepreneurial criteria – we think like entrepreneurs – and we want to avoid lasting losses. This means we invest with a long-term perspective in high quality companies.
We focus on companies that have a sustainable competitive advantage and are in a position to invest in projects generating a high return on equity. We favour companies producing a strong and predictable cash flow. They must have a solid balance sheet and create long-term value for their shareholders.
A fund which reconciles all these ideas and the convictions of family businesses:
BL European Family Businesses
Investing in family companies
Empirical study conducted by the Handelsblatt Research Institute
At BLI’s request, the Handelsblatt Research Institute conducted a study to identify the characteristics that distinguish family-run companies.
Compared to companies whose capital is not family-owned, family-run companies:
- pursue long-term corporate strategies and focus more on their core businesses.
- tend to have a far higher equity ratio, and a similar and at the same time more stable return on equity.
- family-owned companies have lower debt ratios.
On the whole, family-owned companies target a total shareholder return that is more stable and longer-term than comparable non-family-owned companies. This makes them attractive investment vehicles, particularly for long-term investors.
BLI - Banque de Luxembourg Investments has proven experience in fund management in three keys areas: Equities, bonds and multi-asset strategies.
We manage a range of over 30 investment funds, with assets under management totalling 11.88 billion euros at 31 October 2019.