Hidden champions with above-average growth and leading products can be found especially in the German small cap segment. The focus of Berenberg Aktien Mittelstand is on established niche companies that have focused business models and strong market positions both in their home markets and globally. The strategy is based on a disciplined bottom-up stock selection, focusing on companies with excellent business models, strong entry barriers and top management – many of them owner-managed.
- Concentrated portfolio of 25-45 stocks
- Mid-cap approach; small- and micro-caps can be added
- Long-term investment horizon and low portfolio turnover
- Benchmark-agnostic selection
Further details on the opportunities and risks of this fund can be found in the sales prospectus.
Performance in 12-month periods
Monthly market comment
Verbio performed very well after the company published a positive outlook for the coming financial year. In addition, the share price benefited from the takeover of a competitor from the USA, which reawakened the takeover fantasy. Stabilus shares performed well in October, but without any relevant newsflow. The general demand on the stock market for more cyclicality had a positive effect. Uncertainty regarding the medium-term demand for IT solutions led to a negative share price development at the German IT system house Bechtle. The share of Patrizia had to record heavy price losses due to continuing uncertainties on the real estate market due to rising interest rates and falling real estate prices.
Andreas Strobl has been Portfolio Manager at Berenberg since November 2016. He began his professional career in 2002 as a Sell-Side Analyst at BayernLB in Munich. In 2006 he switched to Allianz Se (Aequitas GmbH) as Senior Investment Manager. There, he managed European equity investments within the framework of a fundamental investment approach, particularly in the areas of finance, real estate and media. Andreas Strobl joined Allianz Global Investors in Frankfurt in 2015 as a Senior Portfolio Manager, where he was responsible for the management and development of various European small/mid cap equity portfolios. He studied business administration at the LMU in Munich. In 2005, he completed the CIIA (Certified International Investment Analyst) and CEFA (Certified European Financial Analyst) training as the best in his class.
Sebastian Leigh has been Portfolio Manager at Berenberg since October 2017. Previously, he spent 3 years as an Associate in the Assurance division of EY, with a primary focus on automotive and healthcare companies. He studied Accounting and Finance at the University of Kent. He has also passed the CFA Level I exam.
Consideration of ESG Elements
Identifying companies and business models that will be successful in the long term is the basis for good investment decisions. Environmental, Social and Governance (ESG) factors are key factors in decision making and are therefore integral
components of the investment process.
The fund does not actively manage its carbon footprint, however, emissions data such as CO2 intensity are relevant parameters which can be used to assess the efficient management of a company and the extent of transition risks.
The data provider MSCI ESG uses an ESG score of 0 to 10 to assess the management of material ESG risks of portfolio holdings compared to competitors.
ESG Controversies Screen
Investments in the fund are monitored for ESG controversies and, with the help of MSCI ESG data, flagged according their severity. Thereby, potential ESG risks of investments are identified. In the case of an orange flag (severe controversy), we enter into an active exchange with the company. In the case of a red flag (very severe controversy), the company is excluded.