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

  • Despite the largely unfavourable conditions for dividend shares, ERSTE RESPONSIBLE STOCK DIVIDEND recorded a positive performance and even outperformed the global market in 2025.
  • In view of the political uncertainties in the United States, we reduced our positions in the USA early on and significantly increased those in Europe, which benefited performance, especially in the first half of the year.
  • In the course of rebalancing at the beginning of October, we increased the weighting of US equities, but their absolute weighting remains well below that of the global equity market.
  • Economic indicators are robust, and interest rates are likely to remain low for the time being. The latter fact in particular should support dividend shares.

Fund manager Alexander Sikora-Sickl
(c) Stephan Huger

Fund & Performance

The ERSTE RESPONSIBLE STOCK DIVIDEND is a sustainability equity fund that invests worldwide primarily in shares of selected companies from developed markets. The fund's investment process is based on fundamental business analysis. When selecting stocks, the focus is on companies with high to medium market capitalization, attractive dividend yields and, in the past, relatively low price fluctuations. Investing in stocks of companies, that are pioneers in terms of ecological, social and governance aspects, are crucial for investment decisions.

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.

Performance since start of the fund (1.3.2017). 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 Alexander Sikora-Sickl

Review

Global equity markets were initially characterised by uncertainty and volatility in the first half of the year. This was triggered primarily by Donald Trump's erratic trade policy, whose tariff announcements led to massive price fluctuations at times. The unclear and erratic tariff policy fuelled economic fears, as did concerns about a rise in inflation in the United States. In this context, the US equity market and the US dollar came under pressure. Mega caps from the technology sector in particular were on the weaker side during that period.

By contrast, European equity markets performed significantly better, recording strong gains in the first half of the year. Europe benefited from the easing of the debt brake in Germany, the massive increase in defence budgets announced by the EU, and capital outflows from the USA. Overall, this created a positive environment for defensive equities, with both dividend shares and low-volatility equities showing relative strength. This trend quickly reversed, however, and in the second half of the year, investor interest once again focused on large-cap growth shares from the technology and communications sectors.

Artificial intelligence (AI) remained the dominant theme, benefiting above all tech companies that provided the necessary computing capacity (data centres, network components, chips, etc.). Share prices were supported by interest rate cuts in the USA. Defensive factors (value, high dividend, minimum volatility) lagged behind the market in this environment. Towards the end of the year, the upward trend stalled somewhat after voices warning of a bubble forming in the AI sector became more prevalent.

Despite the largely unfavourable conditions for dividend shares, ERSTE RESPONSIBLE STOCK DIVIDEND recorded a positive performance and even outperformed the global market in 2025. In view of the political uncertainties in the United States, we reduced our positions in the USA early on and significantly increased those in Europe. This way, the fund benefited both from Europe's relative strength in the first half of the year and from the strength of the euro against the US dollar.

The most important contribution to performance came from equity selection, particularly in the financial, technology and healthcare sectors. In the course of rebalancing at the beginning of October, we stepped up the weighting of US equities, but their absolute weighting has remained well below that of the global equity market. At the same time, we reduced the weighting in Europe, although it retains a significantly higher weighting in the fund than in the global equity market. During this period, the fund maintained its positive performance despite the strong upward trend in growth shares. As in the first half of the year, the positioning in the healthcare sector and the equity selection in the financial and technology sectors made a significant contribution to said positive performance.

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

 

Outlook

The general market environment remains positive. Economic indicators are robust, and interest rates are likely to remain low for the time being. The latter fact in particular should support dividend shares. At the same time, we have recently seen a factor rotation on the markets. Uncertainty surrounding growth shares has increased, and there is growing discussion of a possible bubble forming in AI. This is due, on the one hand, to the enormous investments in AI and the expansion of data centres and, on the other hand, to a flattening of the growth curve coupled with high valuation levels for technology companies. As a result, more defensive market segments have come to the fore again, including the dividend factor. If this short-term rotation were to lead to a longer-term trend, this would provide additional support for the ERSTE RESPONSIBLE

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

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