Three years after inception, the Berenberg European Equity Selection Fund with positive results
- Equity selection on the basis of a pure quantitative approach has proven itself to be a successful strategy.
- The fund has outperformed the EURO STOXX 50 TR Index by more than 8 per cent, with much lower volatility.
Hamburg/Frankfurt am Main. The equity fund Berenberg European Equity Selection (ISIN DE000A1C5D05) celebrated the third anniversary of its inception on 18 October. Since that time, it has achieved a total performance of 30.21 %. It even outperformed the benchmark EURO STOXX 50 TR Index by 8.08 %. This positive result was achieved by means of a stringent, absolute disciplined and highly transparent investment process. The fund’s volatility has been only 14.33 % p.a., which is much lower than the overall market volatility of 22.60 % p.a.. Furthermore, the maximum loss potential (“maximum draw-down”) was almost half of the benchmark.
“Our quantitative selection process is designed to pick fundamentally undervalued equities that historically exhibit resistance in falling markets. The country-specific and industry-specific orientation is determined by the bottom up selection process,” explained Boris Jurczyk, Portfolio Manager of the Berenberg European Equity Selection Fund and Head of Equity Selection at Berenberg. “It is a classic long-only equity fund. No derivatives are used and no supplementary income is generated from securities lending transactions. The focus is solely on the development and implementation of the equity selection strategy.”
However, the stock market does not provide any guarantee of constantly rising prices and capital appreciation. Martin Weidemann, Investment Advisor for Equity Strategies at Berenberg, knows this full well: “It is essential for investors to assess both the income potential and the corresponding risks. Although hedging strategies can also reduce volatility and downside risks, a targeted selection approach that places a particularly strong emphasis on risk mitigation is bound to be successful.”
Berenberg has employed this equity selection model in its special institutional mandates since 2004. The purely quantitative approach, which precludes the exercise of discretionary influence on the part of the portfolio manager, yields an extremely valid performance characteristic, and thus a very reliable forecast quality.
The fund is admitted for sale in Germany and Austria. It features two unit classes, one for individual investors and one for institutional investors.
Director Corporate CommunicationKarsten Wehmeier
Phone +49 40 350 60-481 firstname.lastname@example.org