Trillions of euros under one roof in Munich – our key takeaways from the German Corporate Conference
We returned to the German Corporate Conference hosted by Berenberg and Goldman Sachs in Munich on 21–23 September 2026, primarily with our DACH Value fund hats on. In this post, we share our key takeaways from an event attended by around 200 companies and more than 500 investors. Taking into account the assets managed by the investors and companies attending, the total comfortably ran into the trillions of euros. We will try to keep the discussion light and readable.
The mood among companies and investors
- Given the shocks of recent years, from tariffs and shifting geopolitical tensions and conflicts to rising inflation and interest rates, the mood among companies was surprisingly calm and positive. Businesses seem to have become accustomed to operating in a challenging environment. Many investors may underestimate how well companies and economies can adapt, as we have seen time and again in recent years. Overall, we heard virtually no complaints.
- Financial sector companies, including insurers, banks, asset managers and online brokers, appear to be doing exceptionally well. The positive momentum in investment markets is benefiting businesses across the sector.
- Many industrial companies are delivering record earnings, and their share prices have risen. Industrials now also account for a much larger share of the German stock market than the automotive sector. According to Goldman Sachs’ calculations, the weighting of the “industrial goods” sector is already almost three times that of the automotive sector.
- Medical technology has been among the laggards since the pandemic-era bubble burst, but we now saw widespread signs that the sector may be finding a floor. We recognise the positive structural drivers supporting the sector over the longer term and are therefore retaining selected healthcare-related holdings in the fund.
- By contrast, sectors facing structural challenges, such as automotive and chemicals, remain subdued. European consumers are also still hunkered down. DACH Value has very little exposure to these sectors.
- Virtually every company presentation and small-group meeting addressed how businesses are positioning themselves in the age of AI. Some sectors face a greater threat of disruption, while certain companies are seen as likely winners from adopting AI. Investors’ views vary considerably, with a significant impact on valuation multiples. Software giant SAP, for example, has seen its share price swing sharply in both directions this year, most recently moving back up.
- Many former favourites among mid-cap stocks are trading at historically low valuations following steep share price declines. One example is ticketing and live entertainment company CTS Eventim. Its business has performed much better than the share price suggests. The company is the clear market leader in Europe, and trends are working in its favour. We have added to our holding over the past year. Its forecast EV/EBIT multiple for next year is around 7.7x.
- We have met the management of car rental company Sixt numerous times over the past 15 years. This time, however, we met Alexander Sixt, a member of the founding family and the company’s Co-CEO, for the first time. He spoke candidly and with humility about the company’s long-term direction, threats and opportunities. The industry is unforgiving and highly competitive, but Sixt’s track record is outstanding. At these valuations, we are firmly holding on to our shares. There is room for growth, particularly in the vast US market, where Sixt’s market share is currently just over 3%.
- One of our most impressive meetings was with insurance giant Allianz. We have increased its weighting over the past year, and the shares have also performed well since the fund’s launch. The company is in excellent operational shape and is incorporating AI across its business. Allianz has a strong balance sheet, an excellent record of dividend growth and an ongoing share buyback programme. There is considerable room for growth: even in Germany, its market share is only around 17%. As a global business, it also has plenty of growth opportunities elsewhere. The shares remain very attractively valued, and we see substantial upside over the coming years. For example, the forecast P/E ratio for 2027 is around 12.6x. The company is generating a return on equity of approximately 19%.
- We also heard from Berenberg’s Holger Schmieding, one of Germany’s leading economists. His presentation covered, among other topics, Germany’s improving growth outlook and the political turbulence accompanying AfD’s gains in regional elections. He estimated a roughly 35% probability that Merz would have to leave office before the end of his term, while stressing that this estimate could change quickly. Germany’s next federal election takes place in 2029 and will provide a clearer indication of the country’s future direction. For now, no other party is willing to form a coalition with AfD, limiting its prospects of gaining meaningful power.
- Germany’s stock market has barely reacted to domestic politics. The impact on our DACH Value fund has likewise been negligible, as the portfolio mainly consists of strong global businesses with limited dependence on German politics or even the German economy. Germany’s economic growth has at least returned to positive territory, with the annualised growth rate currently around 1–1.5%. It is also worth remembering that funding from Germany’s enormous infrastructure and defence package is gradually starting to flow, which should lift sentiment during 2027. In the meantime, we hope domestic politics does not become completely deadlocked.
- We wrote this report on our flight home and discussed how, as things stand, we do not expect to make a single change to the fund’s holdings as a result of the conference. This is unprecedented for us, but it reflects how comfortable we are with the portfolio’s composition and sector allocation.
- We remain confident in the portfolio’s ability to deliver, both in absolute and relative terms. The fund’s forecast financial metrics provide a solid foundation for that confidence (Bloomberg, median figures for the portfolio as at 24 September 2026). For example, the forecast P/E ratio for 2027 is around 12.9x. If we dare to look ahead to 2028, it falls to close to 11x. The forecast EV/EBIT multiple for 2027 is around 11.2x, while the forecast return on equity for 2026 is approximately 17%. Historically, levels like these have provided a very strong starting point. We are also pleased that the fund’s assets are approaching €70 million.
Below are a few charts illustrating some of the topics discussed above.
With autumn greetings,
Jonas Koivula & Olli Viitikko
DACH Value Portfolio Managers
Proprius Partners Oy
P.S. Once again, we managed to avoid Oktoberfest despite the organisers’ efforts to persuade us to join.
Figure 1. Performance of Sixt (SIX3), Allianz (ALV), CTS Eventim (EVD) and DACH Value since the fund’s launch on 31 March 2023. The chart shows total returns (source: Bloomberg, 24 September 2026). CTS Eventim was added to the portfolio later, while Sixt and Allianz have been holdings since the fund’s launch.
Figure 2. Forecast financial metrics for Allianz (source: Bloomberg, 24 September 2026).
Figure 3. Forecast financial metrics for CTS Eventim (source: Bloomberg, 24 September 2026).
Figure 4. Forecast financial metrics for Sixt’s preference shares (SIX3) (source: Bloomberg, 24 September 2026).
Figure 5. DACH Value fund sector allocation.
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