ERSTE STOCK QUALITY:
Quality over quantity
Studies show that a portfolio with up to 25 shares can already offer sufficient diversification and an optimal risk/return profile (source: Reilly & Brown (2011); Choi et al. (2017)). Even though the sector and country profile is based on fundamental equity analysis, the fund management ensures a balanced mix. This very concentrated selection of just 25 stocks therefore offers the diversification benefits of a balanced portfolio.
ERSTE STOCK QUALITY thus has sufficient diversification and at the same time reinforces the potential advantages of active management. Due to position sizes of around 4% per stock, the performance and risk of individual stocks has a greater influence on the overall performance. The quality of the selection process therefore has a much greater impact on the performance of ERSTE STOCK QUALITY. However, a strong concentration of the portfolio also means less risk diversification. This can lead to higher price fluctuations and capital loss.
Please note that investing in securities involves risks as well as opportunities
Global
equity funds
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consultation appointment
Proven investment process
Investment universe
- around 5.000 equities
- Filter region: Stocks global industrialized
- Quantitate filter: best 20% stocks according to various factors such as sentiment, valuation and quality
- Result: around 1.000 equities
Fundamental share analysis
- Positive earnings momentum
- Attractive valuation
- Positive economic value added
- Good Piotroski F-Score
- Classic quality criteria
- Positive technical chart requirements
- Minimum rating of the company by major rating agencies of A-
Portfolio construction
Selection of the 25 best stocks for the concentrated equity portfolio
Portfolio characteristics:
- 25 stocks
- Large and mega caps
- Equally weighted
- When a new stock is added, an existing stock is replaced
- Country and sector weightings are the result of stock picking
- Foreign currency not hedged
- No derivatives
- No benchmark
It should be noted that key figures are based on past performance and, like past performance, are no guarantee of positive performance in the future. Past performance does not allow any reliable conclusions to be drawn about the future performance of a fund.
Examples of companies
ABB is in the top 3 worldwide in several business areas, including electrification and process automation. This strong market position enables ABB to maintain and grow significant market share. ABB invests approximately 4-5% of its revenue in research and development each year, resulting in breakthrough innovations in electrification and automation.
This continuous investment secures ABB's position as a technology leader. ABB develops visionary solutions for the future of energy, transportation and industry. These include technologies for smart cities, electromobility and advanced manufacturing systems. This innovative strength positions ABB as a key investment in areas driven by megatrends such as urbanization, digitalization and decarbonization, offering long-term growth potential.
NVIDIA controls between 70% and 95% of the market for AI accelerators used to train and deploy models such as OpenAI's GPT. This strong market position enables NVIDIA to maintain and grow significant market share, making the company an indispensable player in the global AI market.
NVIDIA has established strategic partnerships with leading technology companies such as Alphabet, Meta and Microsoft to further strengthen its market position. These alliances extend NVIDIA's influence and enable the company to explore new business opportunities and integrate its technologies into a wide range of applications.
Netflix is continuously developing innovative content and formats to increase viewer loyalty. The introduction of interactive series and the use of data analysis to personalize content are just a few examples of the company's innovative strength.
This innovative strength positions Netflix as a key investment in a market driven by megatrends such as digitalization and individualization. Netflix is the undisputed market leader in the streaming sector, with a significant lead over its competitors. They have had more top 10 titles in the last three years than all other streaming services combined.
Opportunity for value appreciation
Your money is invested in promising sectors.
Quality shares
You invest in a concentrated portfolio consisting of quality shares.
Broad diversification
Risk diversification through broad diversification across several countries and sectors.
Price fluctuations
The price of the fund can fluctuate significantly due to various influencing factors.
Exchange rate changes
Due to the investment in foreign currencies, the fund value may be adversely affected by changes in exchange rates.
Capital loss possible
Capital loss is a possible consequence of investing in the stock market.
With George to ERSTE STOCK QUALITY
Investing in securities involves risks as well as opportunities.
Buy funds online
If you click on “Buy funds”, you will be redirected to George, Austria's most modern banking service.
Open a fund savings plan online
If you click on “Open online”, you have the option of opening a savings plan for this fund via George or combining it with up to 5 other funds.
Further information
Building up capital with investment funds
For many investors, a fund savings plan is a useful way to build up capital over the long term. To make sure it works, our expert Johann Griener has 5 useful tips for surviving difficult market times.
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How can I invest my money wisely?
There are many reasons to make income-oriented provisions - be it to save for larger investments or to finance your children's education. This is where actively managed investment funds come into play, as the fund management takes care of all these issues.
Disclaimer
This document is an advertisement. Please refer to the prospectus of the UCITS or to the Information for Investors pursuant to Art 21 AIFMG of the alternative investment fund and the Key Information Document before making any final investment decisions. Unless indicated otherwise, source: Erste Asset Management GmbH. Our languages of communication are German and English.
The prospectus for UCITS (including any amendments) is published in accordance with the provisions of the InvFG 2011 in the currently amended version. Information for Investors pursuant to Art 21 AIFMG is prepared for the alternative investment funds (AIF) administered by Erste Asset Management GmbH pursuant to the provisions of the AIFMG in connection with the InvFG 2011. The fund prospectus, Information for Investors pursuant to Art 21 AIFMG, and the Key Information Document can be viewed in their latest versions at the website www.erste-am.com within the section mandatory publications or obtained in their latest versions free of charge from the domicile of the management company and the domicile of the custodian bank. The exact date of the most recent publication of the fund prospectus, the languages in which the Key Information Document is available, and any additional locations where the documents can be obtained can be viewed on the website www.erste-am.com. A summary of investor rights is available in German and English on the website www.erste-am.com/investor-rights as well as at the domicile of the management company.
The management company can decide to revoke the arrangements it has made for the distribution of unit certificates abroad, taking into account the regulatory requirements.
Detailed information on the risks potentially associated with the investment can be found in the fund prospectus or Information for investors pursuant to Art 21 AIFMG of the respective fund. If the fund currency is a currency other than the investor's home currency, changes in the corresponding exchange rate may have a positive or negative impact on the value of his investment and the amount of the costs incurred in the fund - converted into his home currency.
Our analyses and conclusions are general in nature and do not take into account the individual needs of our investors in terms of earnings, taxation, and risk appetite. Past performance is not a reliable indicator of the future performance of a fund.