How did the fund perform in 2025?

ERSTE GREEN INVEST MIX performed well in 2025. However, this performance was accompanied by very high volatility, which was mainly driven by political factors, particularly in the United States. Here, it was Trump's budget bill and flagship project, the One Big Beautiful Bill (OBBB) – which, with various drafts and amendments, led to significant fluctuations in our segment. Ultimately though, the final bill was better than the market had expected, and our fund has since outperformed the broader market. Although the tone and rhetoric from the White House will remain negative, the legal situation continues to be supportive for renewable energies such as wind and solar. The equity portion thus provided a positive contribution, while the bond portion also performed satisfactorily.

Please note: Investing in securities involves risks as well as opportunities. Past performance is no reliable indicator of the future value development of the fund.

We have also published a blog article on this topic: US climate policy: clear conditions for renewable energies.

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

Roughly speaking, the allocation was 50% equities and 50% bonds. As in previous years, the focus remained on the energy sector, which in our case includes renewable energy such as wind and solar, but also batteries and geothermal energy. After years of stagnation, we can see a sharp rise in electricity demand for the first time in 25 years, particularly in the United States. This is mainly due to data centres and AI (artificial intelligence), which are driving investment in infrastructure. Hyperscalers and the Magnificent 7 in particular are investing enormous sums in the expansion of these data centres – and in addition to the race for chips, the energy bottleneck is increasingly being cited as an important factor for further expansion. Accordingly, strenuous efforts are being made to bring as much electricity as possible onto the grid. Wind and solar are currently not only the cheapest sources of energy but can also be brought onto the grid the fastest. It is precisely this speed that is a strong argument for tech companies to rely on solar and wind energy – the price is often secondary. In the bond segment, we implemented a medium level of duration predominantly through high-quality issuers in the green-bond segment.

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

The themes of ERSTE GREEN INVEST MIX will remain unchanged. The biggest risk for the fund, as for the market as a whole, is a setback of the AI theme. In the fund, we are focusing on infrastructure providers, both in the energy sector (HASI, First Solar, Nextracker, etc.) and in the energy efficiency sector (Schneider Electric, ABB, Legrand, etc.). We are therefore investing more in the “shovel” part of the gold rush and are less dependent on which model or company ultimately prevails.

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.

Mark Zuckerberg recently said in a podcast, “If we end up misspending a couple of hundred billion dollars, I think that that is going to be very unfortunate, obviously. But what I'd say is I actually think the risk is higher on the other side.” This illustrates very well that no company wants to fall behind in the race for AI – and accordingly, we also see infrastructure investments as a longer-term driver. In the bond segment, we expect a steeper yield curve and possibly an interest rate cut by the ECB.

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

We continue to place a high emphasis on energy, and the USA remains an important market segment. Most AI innovation is currently taking place in the United States, which is also where the largest investments in data centres are being made. In addition, the legal situation has been clarified and is very supportive of renewables. Meeting energy needs is more important than ideological views.

China is still not represented in either fund – most companies operating in our segment in China tend to work with very thin margins and are exposed to fierce (local and international) competition. In the bond segment, we are pursuing the strategy of medium duration and high credit quality through predominantly green bonds until further notice.