UBAM - Dr. Ehrhardt German Equity AC EUR

Key points

• German stocks are cheap relative to their international competitors
• High-conviction German equity fund based on three layers of complementary analysis
• Strong outperformance of the benchmark since inception
• High-quality, on-the-ground investment team
• AAA rating from Standard & Poor’s

Investment case

The German economy is the strongest in Europe, with prudent fiscal policy, a healthy trade balance and no real estate bubble. With exports accounting for almost half of GDP, Germany benefits from any weakness in the euro as well as from growth in Asia, a major trading partner. Its stock market is generally cheaper than that of other major economies, and German companies have made considerable progress in terms of optimising cost structures and margins over the past few years.

Fund concept

UBAM - Dr. Ehrhardt German Equity invests mainly in blue chips, with an emphasis on companies with strong balance sheets and proven management teams. The fund’s composition can differ significantly from that of the benchmark and it may use cash or derivatives to preserve value in falling markets. The investment process is based on Dr. Ehrhardt’s proprietary “FMM approach”, which combines fundamental research with analysis of monetary and market sentiment indicators. This technique has delivered strong relative returns in both up and down markets since the fund’s inception.