While the stock markets climbed to new record highs in the first half of the year, the first central banks also initiated a turnaround in monetary policy by cutting interest rates. Will the environment remain positive?

In the Funds exclusive series, the fund managers of selected funds look back on developments in the first half of 2024 and give their assessment of what the markets could expect in 2024. (Note: Prognoses are not a reliable indicator of future performance).

"We do not expect any significant changes to the market drivers that we saw in the first half."

Markus Jandrisevits, fund manager CORE Balanced

Fund & Performance

CORE Balanced is a mixed fund of funds and invests between 20% and 30% in equities and up to 80% in bonds. In addition, up to 10% of the portfolio is invested in alternative asset classes. The fund is suitable for long-term capital appreciation.

Note: Past performance is not a reliable indicator of future performance.

Performance since start of the fund. 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.

Commentary by fund manager Markus Jandrisevits

How did the fund perform in the first half of the year and what were the priorities in the fund?

The fund gained 3.8% in the first half of 2024. We slightly reduced the equity allocation and stepped up cash at the beginning of the year. In March, we increased the gold ETC weighting at the expense of cash. At the beginning of May, we increased the position of Asian high-yield bonds and sold the position in corporate bonds from growth markets in its entirety. The equity/bond ratio remained constant during that time.

 

What expectations do you have for the second half of the year?

For the second half of the year, the fund management team does not expect any significant changes to the market drivers that we saw in the first half, i.e. the inflation trend and the associated global monetary policy, geopolitical tensions, elections in the USA, and the megatrend of artificial intelligence.

Note: Prognoses are not a reliable indicator of future performance.

CORE Balanced

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.