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 got off to a good start in the first few weeks of the year, but then suffered a correction and has been moving steadily upwards ever since."

Gerhard Beulig, fund manager YOU INVEST GREEN progressive

Fund & Performance

YOU INVEST GREEN progressive offers investors a dynamic mix of different asset classes. Within the YOU INVEST product family for private customers, it is the fund with a dynamic risk appetite and suitable for long-term capital accumulation. Price fluctuations can be rather high. The portfolio is continuously monitored by our experts and regularly optimized in line with current market opportunities. The fund management is managed within a comprehensible and structured investment process.
The fund invests up to 75% in equities or equity funds and up to 100% in bonds or bond funds.

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

  • Continued positive trend on the bond markets
  • Environment should also continue to be supportive to the equity markets

 

How did the fund perform in the first half?

The fund got off to a good start in the first few weeks of the year, but then suffered a correction and has been moving steadily upwards ever since. Almost all asset classes in the bond segment recorded gains. The equity markets were also positive. Investors expect declining inflation rates and thus a foreseeable end to the cycle of interest rate hikes.

Even if yields remain unchanged, the higher level of yields of course helps generate current income. As for bonds, high-yield corporate bonds posted the highest returns, followed by emerging markets bonds in local currency. Global equity markets topped the performance list of all asset classes. Europe, Japan, and the technology sector were the main driving factors.

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

In the bond segment, we focused on European corporate bonds with very good ratings, where moderate maturities already come with attractive yields. In addition, we invested in US corporate bonds with very good ratings, Eurozone government bonds, high-yield bonds and emerging markets bonds.

In the equity segment, we remained at about 75% of the maximum allocation for most of the time. The selection of sustainable funds constituted a cornerstone of our strategy. In general, we curtailed out investments in money market instruments in order to be able to participate in the positive trend on the fixed income markets.

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. 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 § 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 § 21 AIFMG, and the Key Information Document can be viewed in their latest versions at the web site 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 web site 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 § 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.