Investment Strategy
The Berenberg Merger Arbitrage is an equity-based absolute return fund that pursues a specialised merger arbitrage strategy. The fund aims to achieve absolute returns while protecting investors' capital by exploiting price differences arising from publicly announced mergers, acquisitions, corporate restructurings or similar transactions. The fund aims to achieve long-term capital growth and outperform the money market (as measured by the €STR).
The fund's investment strategy aims to generate attractive absolute returns, regardless of general stock market performance. Due to its historically low correlation with traditional market indices, the fund offers investors diversification within the overall portfolio. Through broadly diversified investments in various M&A transactions, sectors and regions, the fund aims to achieve a stable risk/return profile with low volatility. The investment strategy aims to exploit inefficiencies in the pricing of company acquisitions and mergers and is based on the difference between the market price of a target company and the announced acquisition price.
Fund data
| ISIN | LU2986719214 |
|---|---|
| WKN | A410S2 |
| Inception date | 13.05.2025 |
| Issue price (18.07.2025) | 100.10 EUR |
| Redemption price (18.07.2025) | 100.10 EUR |
| Fund volume | 22.84 Mio. EUR |
| Share class volume | 1.12 Mio. EUR |
| Currency Fund / Share Class | EUR / EUR |
| Minimum investment | - |
| Asset Manager | Joh. Berenberg, Gossler & Co. KG |
| Management company | Universal-Investment-Gesellschaft mbH |
| Custodian | BNP Paribas S.A. Niederlassung Deutschland |
| Use of income | Accumulating |
| End of financial year | 31.12. |
| Registration and Distribution | DE, AT, FR, CH, IT, LU |
Costs
| Issue surcharge | Up to 5.00% |
|---|---|
| Flat-rate fee p.a. | 2.00% |
| Total Expense Ratio (TER) p.a. | 2.15% |
| Performance fee | 15% of the outperformance compared to the volume-weighted trimmed mean price of €STR |
Chances and risks
| Chances | Risks |
|---|---|
| Attractive potential returns on stocks in takeover situations | A stocks may fall below the purchase price at which it has been acquired |
| Stocks involved in takeovers generally demonstrate greater stability compared to broader market trends | Equities are highly volatile and subject to price losses |
| Potential additional returns through analysis of individual stocks and situations and active management | Equities may temporarily underperform in takeover situations |
| Consistent hedging of currency risks | The success of individual stock analysis and active management is not guaranteed |
| The use of derivatives to facilitate certain investment management techniques, including building both ‘long’ and ‘synthetic short’ positions and creating market leverage to increase a fund's economic exposure beyond the value of its net assets, may cause the funds' overall risk profile to increase | |
| A positive return is not guaranteed. The performance of a merger arbitrage strategy may diverge from broader equity market trends, as both upward and downward stock price movements can affect its overall value |
Further details on the opportunities and risks of this fund can be found in the sales prospectus.
Monthly market comment
After a good six weeks of build-up, around 68% of the portfolio is invested, with further allocations being made selectively. The M&A market remains active: almost a dozen deals were concluded at the end of the month - including Fortnox, SpringWorks and Juniper Networks. The smooth Juniper deal by HPE sends a positive signal - comparable US deals have been trading tighter since then. We continue to monitor Mars-Kellanova; spread widening after cautious tones from Brussels. As at the reporting date, the portfolio comprises exactly 30 positions - 49% Europe, 51% North America. The average holding period is around 4 months. New spreads continue to remunerate the risk attractively, particularly in Europe (median spread approx. 8% p.a.). Key positions: Takeaway.com, Covestro, Footlocker, Verallia, Grupo Catalana Occidente. The market is showing structural strength: antitrust proceedings are becoming more predictable, financing is available and buyers are acting with more confidence. Merger arbitrage remains well positioned, both tactically and strategically.
Portfolio Management
