In the Fund Check series, fund managers of selected funds look back on developments over the past year and give their assessment of what we can expect in 2026. (Note: Prognoses are not a reliable indicator of future performance. Please note that investing in securities involves risks as well as opportunities.)

Summary

Market environment:

  • The first half of the year saw sharp price fluctuations on global equity markets, triggered by the US tariff policy. This was followed by a period of recovery.
  • The US dollar came under pressure, and the price of gold recorded a significant increase.

Current allocation:

  • Equities: about 50%
  • Gold: about 5%
  • Corporate bonds – preference for European high-yield and investment-grade issuers
  • Asian high-yield bonds blended in
  • Euro government bonds and emerging markets local currency government bonds were overweighted relative to the strategic allocation.

Outlook:

  • We still expect higher volatility on the capital markets in 2026 but are confident that the positive factors will prevail for the asset classes of CORE Balanced.

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

Fund manager Philip Schifferegger
(c) Daniel Hinterramskogler

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: Please note that an investment in securities entails risks in addition to the opportunities described. Past performance is not a reliable indicator of future performance.

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 Philip Schifferegger

Review 2025

Supported by a robust economy and solid corporate earnings, global equity markets performed well at the beginning of the year. The change of government in the United States, which was interpreted positively by the markets, also had a supportive effect. Bond markets, on the other hand, showed slightly divergent developments: investment-related debt expansion in Germany temporarily put euro government bonds under pressure, whereas bond markets in the USA were following a path with relatively few spikes throughout the year.

In the spring, we saw a trend reversal on the equity markets. The USA's aggressive tariff policy led to sharp price fluctuations, and global equities lost more than 10% at times. With the temporary withdrawal of tariffs and the prospect of new trade agreements, the markets recovered from mid-April onwards and recorded gains by the end of the reporting period.

This trend was also followed by corporate bonds, both investment grade and high-yield, as well as bonds from emerging markets, which also performed very positively overall. However, the big winner of the year was gold, which recorded massive gains. This contrasts with a weak US dollar, which shed significant value.

The CORE Balanced fund was slightly underweight on the equity front in the first five months of the year and then neutral. In terms of corporate bonds, we preferred European high-yield and investment-grade issuers. Asian corporate bonds with high yield ratings were tactically added to the mix until the middle of the year. Euro government bonds and emerging markets government bonds in local currency were overweighted compared to the strategic allocation. The US yield curve, on the other hand, was largely underweighted. CORE Balanced recorded a performance after fees of 5.3% for the full year 2025.

Please note: Investing in securities involves risks as well as opportunities.

 

Outlook 2026

The economy and inflation will remain the focus of investors. We expect economic momentum in the USA to slow in the coming months. However, given the current level of inflation, we believe that the US Federal Reserve has limited scope for significant interest rate cuts. We consider corporate earnings to be largely solid.

Conclusion: we expect increased volatility on the capital markets for 2026. However, we are confident that the positive factors will prevail for the asset classes of CORE Balanced.

Please note: Forecasts are no reliable indicator for future performance.

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