First stock league is conquered by the second row.
In the dynamic world of investments, several German funds have been making waves, outperforming their benchmarks and setting new standards. Here's a look at some of the standout performers and the strategies they employ.
First, let's talk about the Lupus alpha Smaller German Champions fund, which has been a consistent performer over the past 20 years. Launched in August 2001, this fund has achieved a staggering performance of 1086%, or 13% per year, over this period. The fund, which is relatively diversified, includes top-10 holdings such as aircraft manufacturer Airbus and Jost Works. It has outperformed its benchmark of 50% M-DAX and 50% S-DAX by an average of three percentage points per year.
Another fund that has caught the attention of investors is the Salutaris Multiwert - Superfund. This year, it has been named the most profitable Germany fund, with a gain of around 38 percent since the beginning of the year. The fund, managed by the fund company Axxion, focuses on family-owned companies that are largely unknown to the general public and have an attractive valuation based on 70 different financial key figures. Some of its positions include HanseYachts, Wolftank-Adisa Holding AG, and Ulrich Weitz, CEO of Ibutec Advanced Materials AG.
The Salutaris Multiwert - Superfund's investment strategy emphasizes getting to know the management of the companies personally and ensuring a good chemistry between managers and company leaders. This approach seems to be paying off, as the fund has outperformed the first league of the stock market, including the Dax.
The Dax, Germany's blue-chip index, has almost tripled in value over the past 20 years. Despite this, several rising stars have emerged within the Dax. Companies like sports equipment manufacturer Puma, fashion retailer Zalando, food delivery service HelloFresh, and VW's largest shareholder Porsche are making their mark.
Interestingly, the Dax family is undergoing its largest reform to date, increasing the number of corporations in the first German stock league from 30 to 40. The first German stock league will be weighted by market capitalization. Ten companies will leave the mid-cap segment, the MDax, reducing it from 60 to 50 values.
One fund that has consistently performed well over the past five years is the DWB - Alpha Star Aktien fund. With a return of around 178 percent, it has outperformed all other funds on the market. This sister fund to the Alpha Star Dividenden focuses on dividend-rich hidden champions with consistently high payouts and convincing business models.
In conclusion, while these funds may come with higher fund costs compared to a cheap ETF on the expanded DAX 40, their performance suggests they could be a better choice for investors seeking long-term growth and stability.
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