Berenberg to launch new Mittelstand fund

German private bank Berenberg has announced the launch of a new Mittelstand fund, in cooperation with Universal Investment.

Jointly managed by Ingo Koczwara (pictured) and Tobias Bänsch, the fund aims to offer investors access to the performance of small- and mid-caps in Germany, Austria and Switzerland.

“Small and medium sized businesses have significantly outperformed the major DAX businesses over the past years” explains portfolio manager Ingo Koczwara.

The group aims to capitalise from the fact that while the export-reliant sectors of the German economy are struggling, many Mittelstand businesses which depend on domestic consumption have benefited from a growth in domestic demand.

Moreover, according to the fund managers, a beneficial feature of Mittelstand businesses is the fact that they are often family owned. “Active owners tend to pursue long-term strategic targets and tend to share a common interest with shareholders” Koczwara stresses.

The fund will invest in a portfolio featuring an average of 25 businesses with a maximum market capitalisation of €5bn. While it uses the MDAX as a benchmark, the investment universe is open to stocks which are not included in the index.

It is open to both retail and institutional investors, at a minimum investment of €100 or €750.000 respectively and a management fee of 1.50% or 0.75% respectively.

Mona Dohle
Mona Dohle speaks German and Dutch, she is DACH & Benelux Correspondent for InvestmentEurope. Prior to that, she worked as a journalist in Egypt and Palestine. She started her career as a journalist working for a local German newspaper. Mona graduated with an MSc in Development Studies from SOAS and has completed the CISI Certificate in International Wealth and Investment Management.

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