Banque de Luxembourg Investments (BLI) has announced the further launch of the BL-European Family Businesses fund on 7 December 2016.
The strategy will be managed by Ivan Bouillot, fund manager of the BL-Equities Europe fund since 2004.
The fund will invest in around 60 listed European family businesses regardless of market capitalisation and that will meet the manager’s criteria: a clear competitive advantage, strong profitability, a value-creating business strategy and attractive valuation.
For the manager. a company is considered a family business if at least 25% of its equity is owned by the person or family that founded the company or acquired the company’s capital, if the family has an active role in the company as a manager or a board member, and if there is a desire to preserve the company as part of the family’s wealth.
“One distinguishing characteristic of family businesses is that they are not driven by short-term financial objectives. Because of the family’s commitment to the next generation, the company naturally develops a long-term strategy with an underlying desire for continuity and resilience over time.
“Of course, growth and performance are also important, but these goals are balanced by socio-economic values that can strengthen the organisation and its position in the market,” said Bouillot.
BLI’s head of Sales Lutz Overlack specified : “Our strategy focuses mainly on manufacturers of personal and household goods, food and beverages and companies in the industrial, healthcare, chemistry and technology sectors.”
Banking and insurance, capital-intensive industries, commodities and telecommunication companies are excluded from all the funds in the BL funds range.
The BL-European Family Businesses fund will be distributed in the following countries: Luxembourg, Austria, Belgium, Denmark, Germany, Great Britain, Finland, France, Italy, Netherlands, Norway, Sweden, Switzerland, Singapore, Spain.