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 (24.09.2025) | 99.31 EUR |
| Redemption price (24.09.2025) | 99.31 EUR |
| Fund volume | 24.75 Mio. EUR |
| Share class volume | 1.07 Mio. EUR |
| Currency Fund / Share Class | EUR / EUR |
| Minimum investment | - |
| Asset Manager | Joh. Berenberg, Gossler & Co. KG |
| Management company | Universal-Investment-Luxembourg S.A. |
| 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
At the end of the month, 86% of the portfolio was invested. Numerous new transactions were announced in August, and more than ten M&A situations were newly added to the portfolio. The portfolio currently comprises 47 positions, of which 54% are in Europe, 38% in North America (of which 32% are in the US), and 8% in APAC. The allocation is divided into approximately one-third mid-caps and two-thirds small and micro-caps. Large caps account for less than 5%. The average holding period is four months, with closings until Q2 2026. Spreads remained stable, supported by regulatory progress in the US. Closed in the reporting month: H&T Group, Dun & Bradstreet Holdings, and Verallia. Performance contributions came from, among others, the recognition of the capital measure of Ocean Wilsons Holdings, as well as u-blox Holding AG, Just Eat Takeaway.com NV, and Foot Locker Inc. Currency risks are hedged at over 98%.
Portfolio Management
