Invest alongside entrepreneurs
Companies run by families and entrepreneurs are the backbone of the European economy and an incubator for innovative business models. Entrepreneurs tend to run their businesses prudently. They keep debt levels low and reinvest profits. They are flexible enough to capitalize on new trends and to innovate. They make decisions focused on growing their companies consistently and sustainably.
European family businesses in numbers
To identify the right ETF for you, visit the Our funds page for access to all of our ETFs, as well as our index mutual funds (see ETFs vs Index mutual funds for more information on the differences between these fund types).
If you decide to buy an ETF through an online platform, the easiest way to find it will be to search for the fund using its ISIN – International Securities Identification Number, a 12-digit code that is universally recognized for trading purposes. See the below example with the ISIN highlighted:
An entrepreneur’s commitment to a company ties their reputation to the success of the business. Entrepreneurs therefore tend to be more attentive to satisfying the interests of customers, employees, and business partners. Over time, they build up trust as a distinctive, invaluable asset. And trust is the key to the success of their brands, products, and services.
As a result, family-owned companies as a group tend to outperform broader equity markets.
Watch the video to learn what makes European entrepreneur-run companies an attractive investment opportunity
Companies managed by families and entrepreneurs possess characteristics that foster long-term value creation. Committed ownership, high profit margins, and long-term-oriented investment decisions are among the key drivers of their strong corporate performance.
Some of the world’s oldest established family-run companies are European. They have repeatedly demonstrated a remarkable ability to withstand the fierce social, economic, and political crises that have shaped the continent. The combination of innovative growth potential and resistance to crisis adds up to an attractive mix for equity investors.
The Credit Suisse (Lux) European Entrepreneur Equity Fund invests in publicly traded European companies in which a family or an entrepreneur holds a substantial percentage of the voting rights. In addition to applying exclusions as defined by the Credit Suisse Sustainable Investment Framework, the fund incorporates material ESG1 considerations into its investment process in order to make better-informed and more sustainable investment decisions. Special attention is also paid to active ownership criteria, including board independence, management composition, and other corporate governance aspects.
Family businesses as a percentage of all companies included in the MSCI EMU index
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