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INVESTMENT FUNDBL-EUROPEANFAMILY BUSINESSES“Family businesses are based on a specific area of expertise, and their business culture is…
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INVESTMENT FUNDBL-EUROPEANFAMILY BUSINESSES“Family businesses are based on a specific area of expertise, and their business culture is stamped with particular values. The shareholders' commitment to building and passing on an enduring business project means that family businesses are naturally managed with a long-term vision. This type of company ties in perfectly with our investment approach and may suit investors who are looking for higher returns.â€?Ivan Bouillot BL-European Family Businesses fund manager2WHY INVEST IN FAMILY BUSINESSES? Investment solutions that offer an attractive long-term outlook while limiting risk are increasingly scarce in today’s economic and financial climate. In a low interest rate environment, quality companies can offer investors a better return on their investment.3WHY INVEST IN EUROPE? Economic and financial uncertainty in Europe should not overshadow the quality and appeal of many European companies, particularly those with internationally-recognised expertise and a solid financial base. Banque de Luxembourg has more than 25 years of experience in selecting companies with these characteristics.4THE FAMILY ASPECT: DRIVING COMPETITIVENESS AND PERFORMANCE Family businesses have many intrinsic traits that make them attractive from an investor's perspective.01A LONG-TERM OUTLOOK Family businesses naturally gravitate towards a long-term strategy because of the family’s desire to pass on its legacy to future generations. As their investment decisions focus on developing the company rather than on short-term profitability, they cultivate resilience over time.02COMPETITIVENESS BASED ON QUALITY As the company’s products and services are associated with the family name, there is a strong focus on their contribution to the growth and development of the brand.03SELECTIVE USE OF CAPITAL Family businesses are sensitive to the preservation of the family’s independence, and to the risk of dilution of capital and loss of control in the event of a capital increase. As maintaining their financial autonomy is a priority, they avoid uncertain financial situations in order to protect their capital and dividends. Accordingly, they prefer self-financing and try to avoid debt, which helps to maintain a healthy balance sheet.504A FOCUSED DEVELOPMENT STRATEGY Because the primary focus is on growing and strengthening the core business, family businesses are extremely discerning when it comes to acquisitions for external expansion, applying strict rules for valuation and analysis of potential synergies.05POSITIVE MARKET PERFORMANCE The strategies deployed by family businesses to ensure long-term preservation of their wealth often result in strong performance.UBS European Family-owned index350 300Europe Small Cap250 200Europe Mid Cap150 100Europe Large Cap50 0 01 / 0501 / 0601 / 0701 / 0801 / 0901 / 1001 / 1101 / 1201 / 1301 / 1401 / 15Source : Thomson Datastream, UBS estimates. Based on 100 euros invested in January 2005.06MORE STABLE BUSINESS DEVELOPMENT Cautious in their approach but committed to growth, family businesses have low levels of debt and prioritise resilience in periods of economic slowdown over expansion at any price.6HOW IS THE BL-EUROPEAN FAMILY BUSINESSES FUND MANAGED? The family businesses selected for the fund are European companies in which at least 25% of the equity is owned by the person or family that founded the company or acquired the company’s capital. If they hold less than 25% of the equity, one or more members of the family must occupy a position that allows them to steer the company’s strategy and operational management. The fund is made up of around 60 European family businesses with market capitalisations of more than 100 million euros. The fund manager applies Banque de Luxembourg's business-like approach to investing, which involves treating every investment as though he were taking a long-term stake in the selected company. The companies selected must meet strict criteria in terms of competitive advantage, financial stability, low levels of debt, and low capital intensity. The following sectors are preferred: consumer goods, industry, health, distribution, media, chemicals and technology.7OUR INVESTMENT PHILOSOPHYDEFINITION of family businesses investment universeINVESTMENT Selective investment process and conviction-based managementVALUATION Rigorous methodology based on our own research and company valuationsRISK We manage risk by selecting highquality companies whose business models we understandHORIZON Long-term investment and limited decisionsOur investment strategy, which favours caution and a long-term horizon, is the very essence of our banking model and underpins all our decisions. In many ways, it resembles the strategies of the companies in which we invest.Guy Wagner Chief Economist at Banque de Luxembourg8BANQUE DE LUXEMBOURG AND FAMILY BUSINESSES Banque de Luxembourg has always had close links with family businesses. We started as a bank for small and medium-sized companies, and have been providing private banking services to entrepreneurs since the 1970s. Over the decades, we have developed a full understanding of the challenges that they meet at every stage of their lives. Our clients choose us because we share many of their values, particularly the solidarity, pragmatism and long-term vision that are essential in the current climate of economic crisis. We have become their preferred partners, supporting them with managing and passing on their family legacy as well as helping them to grow their business. We know that every family is unique, and has its own story. Therefore, we pay attention not just to the tangible aspects of their legacy, but also to its intangible elements –the values, expertise and networks that are often the keys to the success of the family and the business. By creating this fund, we offer clients and entrepreneurs an opportunity to invest in other businesses within a structure that matches our convictions and their daily activities.9HOW TO SUBSCRIBE We offer several subscription options to fit the investment goals of each individual investor.01DISCRETIONARY PORTFOLIO MANAGEMENT Would you prefer to delegate the management of your portfolio to Banque de Luxembourg and benefit from our investment fund expertise? The BL Funds Management mandate invests in a portfolio of funds managed by Banque de Luxembourg. By entrusting us with a discretionary mandate, you can benefit from personalised portfolio management, tailored to your investment goals and risk profile.02DIRECT INVESTMENT You may subscribe to our funds at any time. There is no charge for switching between any funds in our range. 103SAVINGS PLAN The investment fund savings plan allows you to regularly invest as much as you want, for as long as you want, without paying an entry fee. 1. Switching between funds may result in variations in the capital invested.10SUMMARY CURRENCY / EURNAV AT LAUNCH / 100 EURNET ASSET VALUE (NAV) / Calculated dailyISIN CAP B EUR / LU1305479153 ISIN DIS A EUR / LU1305479070DATE OF NAV / 07/12/2016ISIN CAP B USD / LU1305479237No redemption fee. No fee for switches to another fund. No minimum subscription.The term “fund” is used as a generic term for the SICAV’s sub-funds. The fund concerned is open-ended and offers no capital protection. BL is a Luxembourg SICAV managed by BLI - Banque de Luxembourg Investments S.A. (hereinafter “BLI”), a company governed by Luxembourg law. The information and opinions provided shall not be considered as legal or tax advice, or an encouragement or recommendation to invest. The information in this document is provided for marketing purposes. It is only valid at the time it is issued and may be updated or amended without notice. Banque de Luxembourg and BLI (hereinafter together "the Bank") shall not be held liable for this information or for any investment decisions that investors, regardless of whether or not they are a client of the Bank, may take on the basis of such information. Such persons retain full responsibility for their decisions. Potential investors are responsible for ensuring that they understand all the risks involved in their investment decisions and should refrain from investing until they have carefully considered, with their own professional advisers, the appropriateness of their investments to their specific financial situation, in particular with regard to the legal, tax and accounting aspects and any potential legal and regulatory constraints on the proposed transaction. No guarantee can be given regarding the appropriateness, accuracy, validity, fairness or completeness of the assessments and expectations based on the information provided. This is not a contractual document. Past performance is not a reliable indicator of future performance. Banque de Luxembourg cannot be held liable for the future performance of these securities. Every investment carries some risk, which may be as much as the loss of all the capital invested. Subscriptions to fund units may only be made on the basis of the latest prospectus, the latest interim and annual report and, in the case of UCITS, the “Key Investor Information Document” or “KIID” which must be read carefully before any investment decision. The prospectus and KIID mention features, costs and risks related to the fund. These documents are available in English, French, Dutch and German. They are permanently available at the Bank’s head office and all its private banking centres. The KIID can be viewed on the Bank’s public website: www.banquedeluxembourg.com No part of this document may be reproduced, transmitted, distributed or published without the Bank’s express prior agreement in writing. BANQUE DE LUXEMBOURG, SOCIÉTÉ ANONYME – RCS Luxembourg B5310 Banque de Luxembourg is authorised by Luxembourg’s Commission de Surveillance du Secteur Financier, 283 Route d’Arlon, 1150 Luxembourg.11BANQUE DE LUXEMBOURG SA 14, boulevard Royal L-2449 Luxembourg Tel. : (+352) 49 924 1 www.banquedeluxembourg.comBanque de Luxembourg, société anonyme, 14 boulevard Royal, L-2449 Luxembourg – RCS B5310 – BL/2016/035/FR/EN/DE/ES – November 2016. – Photography: Getty Images. Design:Please contact our advisers to find out more about the most suitable investment options for your personal situation.
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