Persistently high inflation and the restrictive course of the central banks continued to dominate the first half of the year. In this series, Funds exclusive, our fund managers look back on the performance of selected funds and explain their view with regard to the second half of the year.

"The fund benefited in particular from the performance of equities associated with the megatrend technology in the sectors semi-conductors and software."

Bernhard Selinger, fund manager ERSTE FUTURE INVEST

Fund & Performance

ERSTE FUTURE INVEST is an actively managed, global equity fund investing in megatrends (promising future trends). Equities associated with one or more of the following trends are preferred in the selection process: health and health provision, lifestyle, technology and innovation, environment and clean energy, and emerging markets.

The performance is calculated in accordance with the OeKB method. The management fee as well as any performance-related remuneration is already included. The issue premium which might be applicable on purchase and as well as any individual transaction specific costs or ongoing costs that reduce earnings (e.g. account- and deposit fees) have not been taken into account in this presentation. Past performance is not a reliable indicator of the future performance of a fund.

Performance since start of the fund
Note: Past performance is not a reliable indicator for future performance. Due to the very short term, this presentation of the performance is not very meaningful.

Commentary by fund manager Bernhard Selinger

  • Hopes for an end to interest rate hikes a key driver on the markets
  • ERSTE FUTURE INVEST outperformed the overall market by a significant degree
  • Companies of the megatrend technology recorded particularly significant gains

 

What are your conclusions from the first half of 2023?

In the first half of 2023, the global equity markets delivered a rather positive performance. The main drivers were declines in inflation rates in Europe and the USA and, as a result, hopes of a foreseeable end to the current cycle of interest rate increases.

ERSTE FUTURE INVEST significantly outperformed the overall market during the period under review. The fund benefited in particular from the performance of equities associated with the megatrend technology in the sectors semi-conductors and software. Recently, we reduced our positions in Nvidia and entirely sold the position in Foxconn Industrial Internet.

What do you expect for the second half in terms of the themes of the fund?

  • Megatrend: healthcare

Diseases resulting from unhealthy diet and lack of exercise are currently on the rise, especially in emerging countries. In the fund, we invest in Novo Nordisk – a Danish pharmaceutical company that is a global leader in diabetes care.

  • Megatrend: technology

The widespread use of robotics and Artificial Intelligence across all industries (e.g. IoT – "Internet of Things") requires ever smaller chips with higher computing power while at the same time consuming as little energy as possible. We hold the Taiwanese chip company TSMC, the world's technologically leading contract manufacturer of computer chips, in ERSTE FUTURE INVEST. The company benefits from the growing demand for chips in the semiconductor industry and from the massively increasing complexity in the manufacturing process.

  • Megatrend: environment

As an action plan to channel capital into environmental & sustainable activities, the EU Taxonomy decidedly promotes the transition to a circular economy. From the fund, it is worth mentioning Kurita Water, a Japanese manufacturer of water treatment equipment and chemicals. The company's products cut down on water consumption in production processes, for example in the steel industry and in pulp and paper production.

  • Megatrend: lifestyle

Global e-commerce spending has returned to normal after the Covid boom and the subsequent slump in the wake of the opening of local brick-and-mortar commerce and is showing double-digit annual growth rates. This also benefits Mastercard, the second largest global payment service provider of credit & debit cards, worldwide cashless payments and ATM cash withdrawals.

  • Megatrend: economy in transition

For the second half of 2023, we expect positive impulses from the full re-opening of the Chinese economy. We also focus on companies that benefit from plans to reduce social inequality (“Common Prosperity”) e.g. in the healthcare sector. Consequently, in the portfolio we hold e.g. Aier Eye Hospitals, the leading operator of eye care facilities in China.

 

Note: The companies listed here have been selected as examples and do not constitute investment recommendations. Any portfolio positions of funds disclosed in this document are based on market developments at the time of going to press. In the context of active management, the portfolio positions mentioned may change at any time.

ERSTE FUTURE INVEST

Important legal note:

Prognoses are not a reliable indicator for future performance.

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.