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.

"Equities accounted for about half of the fund’s assets under management and provided a distinctly positive contribution to the overall performance."

Gerhard Beulig, fund manager ERSTE GREEN INVEST MIX

Fund & Performance

ERSTE GREEN INVEST MIX offers investors a balanced mix of stocks and bonds. Assets, which are classified as sustainable by the management company based on a predefined selection process, are acquired directly as well as indirectly. In the equities section, the fund invests worldwide primarily in companies that make a positive contribution to ecological megatrends. In the bond section, so-called green bonds are acquired, which are issued to finance sustainable projects.

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 Gerhard Beulig

  • Global equity markets best asset class in the fund, equity share positively influenced performance
  • High yield corporate bonds delivered the highest returns in fixed income
  • Continued friendly environment expected for equity markets

 

How did the fund perform in the first half?

The fund got off to a good start in the very first weeks of the year which was followed by a weaker phase, and has been on the rise again towards year-highs for a few weeks now. Global equity markets topped the performance list. On the equity markets, Europe and the large-cap US technology sector in particular were the driving factors.

As for bonds, almost all asset classes in this segment delivered positive returns. Investors expect declining inflation rates and thus a foreseeable end to the interest rate hike cycle. Even if yields remain stable, the higher yield level helps to generate current income. High-yield corporate bonds generated the highest returns, followed by emerging markets bonds in local currency.

What was the focus of the fund in the first half?

Equities accounted for about half of the fund’s assets under management and provided a distinctly positive contribution to the overall performance. We invest exclusively in equities that meet the strict sustainability criteria applied, especially in the environmental sector. They have performed well in this year's environment.

In the bond segment, the focus was on European corporate bonds with good credit ratings, which delivered solid returns on moderate maturities. The portfolio was supplemented by high-yield and emerging markets corporate bonds. We were hardly holding any money market instruments in order to benefit from the positive market trend.

What do you expect for the second half in terms of global economy and trends?

We expect a continued positive trend on the bond markets in an environment of further falling inflation (perhaps at a slower rate) and no more surprising interest rate hikes. The yields, having picked up again, will facilitate a clearly positive current yield.

Default rates on corporate bonds should remain at a manageable level, as we do not expect a sharp and prolonged recession. This environment should also continue to be supportive to the equity markets.

What are your priorities in the fund, based on the aforementioned expectations?

We therefore remain almost fully invested and generally prefer corporate bonds, especially in the high-yield segment, and emerging markets bonds. Equity markets will continue to be weighted towards the upper end of the available bandwidths.

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.