German private bank Berenberg has launched the Mittelstand fund, in cooperation with Universal Investment.
The fund’s portfolio will be comprised of around 25 small and medium sized businesses in Germany, Austria and Switzerland, with a maximum market capitalisation of €5 billion. The fund is open to both retail and institutional investors.
The firm moved to create the fund due to the outperformance of smaller firms dependent on domestic consumption over many export-reliant Dax stocks in recent years.
Moreover, the fund’s manager, Ingo Koczwara, finds small- and mid-cap businesses attractive as they tend to be family owned, he said. Familial ownership increases the likelihood that firms will pursue long-term strategic targets and share common interest with shareholders.
Berenberg has over €40 billion in assets under management.
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