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

  • Positive performance since the beginning of the year, roughly in line with the global market for ESG bonds: the positive performance driver was the overweighting of corporate bonds relative to government bonds and quasi-sovereign issuers.
  • Current investment structure: financial service providers command the highest weighting at 38%, while government bonds and quasi-sovereign and supranational issuers account for about 32% of the fund's assets.
  • In terms of currencies, the euro is the core investment at 82%, with the US dollar weighted at 10% and the British pound at 3%.
  • Positioning in 2026: the plan is to maintain the overweighting of financial service providers and industrial sectors.

Fund manager Martin Cech
(c) Stephan Huger

Fund & Performance

ERSTE RESPONSIBLE BOND GLOBAL IMPACT is a global bond fund that invests in green bonds, climate awareness bonds and certified social bonds. Securities are acquired that are classified as sustainable by the management company based on a predefined selection process. The fund invests in government bonds, in issues from government-related and supranational issuers, in corporate bonds, in bonds from financial service providers, in "Pfandbriefe" and in special sustainable bond issues. Foreign currency risks are actively taken and can amount to up to 50% of the fund's assets. A measurable positive impact on the environment and society is at the forefront of the investment decision.

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 Martin Cech

Review

ERSTE RESPONSIBLE BOND GLOBAL IMPACT gained 0.4% in 2025, thus closely mirroring the performance of the global market for ESG bonds. Positive performance drivers included the overweighting of corporate bonds relative to government bonds and quasi-sovereign issuers, as spreads of the former were narrowing over much of the year. The duration was kept between 5.0 and 5.7 years, which was somewhat more cautious than the overall market.

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

In 2025, we participated in numerous attractively priced new issues. This gradually increased the duration of the fund. The US dollar allocation, which was unhedged throughout the year alongside the other currencies, was gradually reduced from 17% at the beginning of the year. The US dollar, which was losing significant value against the euro over the year, had a negative impact on the performance. 

The global market for ESG bonds was at a high level in 2025, albeit slightly down on the strong growth rates of previous years. We expect a similarly high issue level for 2026, with the category of transition bonds, which support companies or organisations in financing their transition to more sustainable business models, likely to gain in importance. Unlike traditional green bonds, which are used exclusively for clearly defined environmentally friendly projects, transition bonds serve to finance gradual changes in industries with high CO₂ emissions – for example, energy, steel, chemicals, and transport.

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

 

Current positioning of the fund

The fund's positioning is as follows: of the individual sectors, financial service providers command the highest weighting at 38%. Utilities account for just under 11%, followed by industrial companies and telecommunications companies, each at around 5%. Government bonds and quasi-sovereign and supranational issuers account for about 32% of the fund's assets under management.

Green bonds account for 70% of ESG bonds, followed by sustainability bonds, which finance both environmental and social projects, at 14%, and social bonds at 10%. In terms of currencies, the euro is the core investment at 82%, alongside the US dollar at 10%, the British pound at 3%, and other currencies of developed nations.

From today's perspective, the fund management team intends to maintain the fund’s overweighting in the financial services and industrial sectors in 2026, as this will facilitate a higher current return. We will continue to pursue active fund management with active participation in new issues.

The fund is classified in accordance with SFDR Article 9. Erste Asset Management regularly publishes on its website the positive impact of the projects financed based on the SDGs (Sustainable Development Goals), the use of funds, and regional distribution.

 

Current market environment

We expect average growth in the global economic environment in 2026. In Europe, inflation rates should be close to the ECB's 2% target; in this scenario, we do not expect any significant change in the ECB's interest rate policy. In the USA, political pressure to cut interest rates has increased, and further steps are expected in the coming quarters. Corporate earnings have recently been very robust, and the capitalisation of banks is also supporting the market environment. However, geopolitical risks are a factor that needs to be taken into account, even though the capital markets have paid relatively little attention to this issue in the recent past. Overall, the capital market environment for 2026 appears to be quite favourable for ERSTE RESPONSIBLE BOND GLOBAL IMPACT.

Please note: Forecasts are no reliable indicator of future performance. Investments in securities entail risks in addition to the opportunities described.

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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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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