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

  • ERSTE EQUITY RESEARCH achieved a performance of 6.2% in 2025. Currency losses were primarily responsible for these modest gains.
  • The focus was on artificial intelligence (AI), the media sector, and banks, which currently combine good momentum with favourable valuations.
  • For the coming year, we expect moderate growth rates with inflation remaining under control, meaning that further interest rate cuts remain a possibility.
  • The fund will continue to focus on AI. However, we will invest in sectors that have little correlation with the technology sector, such as banks, non-cyclical consumer goods, and healthcare.

Please note: Past performance is no reliable indicator of the future value development of the fund.

Fund manager Harald Egger
(c) Stephan Huger

Funds & Performance

The ERSTE EQUITY RESEARCH is an equity fund that invests worldwide in the form of a concentrated portfolio. The fund selection is based on the publicly accessible recommendation list of Erste Group Research. Primarily, companies with a "BUY" rating on the recommendation list are considered for investment.

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 Harald Egger

How did the fund perform in 2025?

ERSTE EQUITY RESEARCH achieved a performance of 6.2% in 2025. The start to the new year was positive, before the announcement of tariffs on exports to the United States in April triggered a significant correction. However, the markets recovered again over the course of the year. Currency losses were primarily responsible for the subdued gains. During the reporting period, the US dollar lost 12% of its value and the Japanese yen depreciated by 11.5%. For a fund that invests 75% of its assets in foreign exchange, currencies had a significant impact on the absolute performance of the year.

Please note: Past performance is no reliable indicator of the future value development of the fund.

 

What were the fund’s main areas of focus in 2025?

The fund combines the expertise of Erste Asset Management and the research department of Erste Group. The focus is on artificial intelligence (AI) and the media sector. Chip manufacturers account for approximately 15% of the fund, with a focus on Nvidia and Broadcom. Media companies with a focus on AI, including Google, Meta, Netflix, and Spotify, also feature prominently with a weighting of 8-12%. Another focus is on banks, which currently combine good momentum with favourable valuations. In general, the fund management team has placed an emphasis on earnings growth, quality, and valuation, and, as a matter of principle, seeks to achieve good diversification across sectors in order to reduce risk. For example, companies from the commodities sector such as Agnico Eagles Mining (gold mines) and Holcim (cement) have made positive contributions to performance.

Please note: The companies listed have been selected as examples and do not constitute investment recommendations. There is no guarantee that the securities will remain in the portfolio permanently.

 

What are the expectations of your fund management team with regard to global economic development and trends, among other things, for 2026?

We expect moderate growth rates and inflation to remain under control in the coming year, meaning that further interest rate cuts remain within the realm of possibility. Some high valuations in the AI sector may lead us to take profits in the technology sector in the coming year and reduce our weighting in this sector. The fund management team has already implemented this approach in the media sector. As an active fund, we will include attractively valued companies in the portfolio. We currently find attractive valuations in the healthcare sector, for example.

 

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

The fund will continue to focus on AI. However, we will invest in sectors that have little correlation with the technology sector. These include banks, which we continue to view as attractive. Defensive sectors are becoming interesting again. Non-cyclical consumer goods could become a focus for 2026, alongside the aforementioned healthcare sector. Energy and commodities will remain an interesting option in 2026. We will take rising aluminium, copper, and gold prices into account for our fund strategy.

Disclaimer of the management company Erste Asset Management GmbH and its sales agent Erste Bank Group

This document is an advertisement. Unless indicated otherwise, source: Erste Asset Management GmbH. The language of communication of the sales offices is German and the languages of communication of the Management Company also include English.

The prospectus for UCITS funds (including any amendments) is prepared and published in accordance with the provisions of the InvFG 2011 as amended. 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 conjunction with the InvFG 2011.

The currently valid versions of the prospectus, the Information for Investors pursuant to § 21 AIFMG, and the key information document can be found on the website www.erste-am.com under “Mandatory publications” and can be obtained free of charge by interested investors at the offices of the Management Company and at the offices of the depositary bank. The exact date of the most recent publication of the prospectus, the languages in which the fund prospectus or the Information for Investors pursuant to Art 21 AIFMG and the key information document are available, and any other locations where the documents can be obtained are indicated on the website www.erste-am.com. A summary of the investor rights is available in German and English on the website www.erste-am.com/investor-rights and can also be obtained from the Management Company.

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Note: You are about to purchase a product that may be difficult to understand. We recommend that you read the indicated fund documents before making an investment decision. In addition to the locations listed above, you can obtain these documents free of charge at the offices of the referring Sparkassen bank and the offices of Erste Bank der oesterreichischen Sparkassen AG. You can also access these documents electronically at www.erste-am.com.

Our analyses and conclusions are general in nature and do not take into account the individual characteristics of our investors in terms of earnings, taxation, experience and knowledge, investment objective, financial position, capacity for loss, and risk tolerance. Past performance is not a reliable indicator of the future performance of a fund.

Please note: Investments in securities entail risks in addition to the opportunities presented here. The value of units and their earnings can rise and fall. Changes in exchange rates can also have a positive or negative effect on the value of an investment. For this reason, you may receive less than your originally invested amount when you redeem your units. Persons who are interested in purchasing units in investment funds are advised to read the current fund prospectus(es) and the Information for Investors pursuant to § 21 AIFMG, especially the risk notices they contain, before making an investment decision. If the fund currency is different than the investor’s home currency, changes in the relevant exchange rate can positively or negatively influence the value of the investment and the amount of the costs associated with the fund in the home currency.

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Please consult the corresponding information in the fund prospectus and the Information for Investors pursuant to § 21 AIFMG for restrictions on the sale of the fund to American or Russian citizens.

It is expressly noted that this communication does not provide any investment recommendations, but only expresses our current market assessment. Thus, this communication is not a substitute for investment advice.

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