Dr. Jens Ehrhardt (l.), founder and CEO of DJE, and Richard Schmidt manage the FMM fund.
The FMM-Fonds (in the following: FMM fund) occupies a special place in German fund history: it is regarded as Germany's first independent asset manager fund and has stood for active, anti-cyclical and conviction-driven investing since its launch. The offensive mixed fund is aimed at investors who value long-term, flexible investments.
When the FMM fund was launched in August 1987, it marked a turning point: for the first time, an independent asset manager in Germany was given permission to launch an investment fund outside of banks and corporations. The fund became a symbol of active and conviction-driven investing with its own standards - and has remained so to this day.
Exceptional continuity in fund management
The fund was initiated by Dr. Jens Ehrhardt, one of the best-known and most influential players in the German fund and asset management industry. Born in Hamburg, he developed the theoretical foundations of his analysis methodology back in the 1970s, founded DJE in 1974 and has managed the FMM Fund without interruption since its launch - an extraordinary continuity that stands for experience, consistency and clear responsibility. At the same time, the FMM fund is the first fund that Dr. Ehrhardt launched himself. For him, the fund was intended to be "a contribution to broad equity diversification in Germany". Since the beginning of 2026, he has been supported by Richard Schmidt, an experienced investment expert, as co-fund manager.
From the outset, the FMM fund has pursued a different approach compared to many of its competitors: no dependence on indices, no rigid quotas for equities or bonds, for example, but active asset management based on convictions. Investments are primarily made in equities, supplemented by bonds or precious metals such as gold or silver if the market environment makes this appear sensible.
Flexible, independent investment strategy thanks to the in-house FMM method
These decisions are based on the FMM method, which Dr. Ehrhardt developed back in 1973 during his doctorate. It is based on the insight that capital markets are not determined by company profits alone. Rather, three forces work together: fundamental economic development, monetary conditions and the mood and psychology of market participants.
While the fundamental analysis identifies long-term economic trends, the monetary analysis provides an indication of how much liquidity and therefore willingness to invest is available on the market. The technical market analysis in turn helps to identify exaggerations and turning points for anti-cyclical investing based on sentiment indicators.
This three-dimensional view of the market is combined with an intensive bottom-up analysis of individual stocks. Only companies that are convincing from a macroeconomic perspective and at company level are considered. The aim is to incorporate both the overarching framework conditions and the quality of individual companies into the portfolio construction in order to participate in long-term growth opportunities and consciously manage risks in challenging market phases.
Responsive action
The market behavior of the FMM fund can be very reactive, especially in times of crisis. For example, in the first half of 2025, Dr Ehrhardt recognized that US tariff policy and the parallel fiscal and monetary stimulus in the EU spoke in favour of European equities with a high domestic market share. He also interpreted the pronounced pessimism in the market as a buy signal. As a result, the fund performed very robustly. The situation was similar in the current year: due to the ongoing geopolitical tensions in the Middle East, the fund management focused the fund on less energy-intensive sectors and mainly added to energy and utility stocks in the wake of the US-Israeli attack on Iran. The adjustments had a very supportive effect compared to the global equity market. Of course, past performance is not indicative of future returns. In retrospect, however, it can be said that the FMM fund has shown great resilience in many difficult market phases.
The focus is on long-term asset preservation
Dr. Ehrhardt himself describes his approach as follows: "I have never aspired to always be at the forefront in bull market phases. At the end of the day, what counts with an asset management fund is whether you have protected investors' money through crises, crashes and structural disruptions." Not least the numerous market upheavals, of which there have been several since 1987, have shaped this defensive basic idea of the mixed fund, which is actually designed to be offensive. Co-fund manager Richard Schmidt adds: "We don't simply sit out fluctuations on the capital markets, but see them as potential opportunities in our long-term approach."
The FMM fund therefore stands less for short-term success than for continuity, discipline and long-term asset management across different capital market cycles. These characteristics have made it an integral part of the German fund landscape. The FMM fund is primarily aimed at private investors with a longer investment horizon who are looking for an actively managed, flexible investment with a focus on equities and are prepared to accept market-related fluctuations.
Legal information:
This is a marketing advertisement. Please read the sales prospectus of the fund in question and the PRIIPs KID before making a final investment decision. This also contains detailed information on opportunities and risks. These documents are available free of charge in German at www.dje.de/en under the fund in question. A summary of investor rights is available free of charge in German in electronic form on the website at dje_summary-of-investor-rights-clean_11_2025.pdf. All information published here is for your information only, is subject to change at any time and does not constitute investment advice or any other recommendation. The statements contained in this video reflect the current assessment of DJE Kapital AG. The opinions expressed are subject to change at any time without notice. All statements made have been made with care in accordance with the state of knowledge at the time of preparation. However, no guarantee and no liability can be assumed for the accuracy and completeness.