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

  • European equities found support after the ECB cut its key-lending rate four times this year. Friedrich Merz's election victory in Germany pleased investors, as the new Chancellor is expected to pursue a more expansionary fiscal policy.
  • Classic growth shares such as Nvidia, Apple, Microsoft, Google, and Broadcom were among our largest positions. Japanese equities also performed well.
  • It is unlikely that the dollar will weaken to the same extent next year, but the trend could remain negative due to Trump's policies.
  • In summary, we remain optimistic about the start of the new year. Earnings growth in the United States should remain in the double digits, and European growth is starting from a favourable base.

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.

Fund manager Tamàs Menyhárt
(c) Samuel Kreuz

Fund & Performance

ERSTE RESPONSIBLE STOCK GLOBAL is a sustainable equity fund that primarily invests worldwide in shares of selected companies in the developed markets. The fund's investment process is based on fundamental business analysis. When selecting stocks, high-quality, high-growth companies are used. Investing in shares of companies that are pioneers in terms of ecological, social and governance aspects is at the forefront of the investment decision. A holistic ESG approach also takes ethical aspects into account.

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 Tamàs Menyhárt

Review

Despite increased turbulence, equity investors were once again able to enjoy solid gains in 2025. We look back on an eventful year that ended where it began – with a global equity market whose profit growth was mainly driven by the AI (artificial intelligence) sector. Although the AI trade suffered a setback at the beginning of the year due to Deepseek news, it quickly recovered thanks to robust growth figures and huge investments in AI by the dominant tech companies. US chip manufacturers benefited disproportionately from this. We last increased our exposure to the sector in the portfolio at the beginning of October.

Europe – a region in which we built up larger positions at the beginning of the year – started strongly into the year, followed by a prolonged period of consolidation. European equities found support after the ECB cut its key-lending rates four times this year. Friedrich Merz's election victory in Germany pleased investors, as the new Chancellor is expected to pursue a more expansionary fiscal policy. At the beginning of the year, there was also hope that a peace deal would soon be reached in Ukraine. This hope proved to be too optimistic in terms of timing, but we currently seem to be moving closer to a deal, which would be positive for European markets. By far the strongest sector in Europe was banking, which benefited from rising profit estimates, low risk costs, and high dividend yields. We were prominently positioned in this sector in our portfolio and further expanded our exposure through acquisitions (e.g. HSBC, Intesa Sanpaolo, Santander and BBVA) during the year.

Although the Fed's interest rate cuts took longer than expected, investors have benefited from three rounds of easing since September. Given the high valuations in the United States, it is important for the equity market that financing costs at least do not increase. In this regard, bond yields in the USA also proved supportive, as they fell at both the long and short ends. Classic growth shares such as Nvidia, Apple, Microsoft, Google, and Broadcom were among our largest positions.

Japanese equities also put in a strong performance, supported by interest rate normalisation, shareholder-friendly regulation and, most recently, the election victory of the new prime minister, who is perceived as business- and market-friendly. The country weighting in the portfolio was between 4-5%, and our largest Japanese holdings include Nintendo, Sony, and two banks that are benefiting from expectations of rising interest rates.

Euro investors participated significantly more in European equities due to the weak USD. It is likely that the extent of the dollar's weakening will not be repeated next year, but the direction could remain negative due to Trump's policies; this will also depend heavily on the Fed's future interest rate path. Due to the above reasons – monetary easing on both sides of the Atlantic, more expansionary fiscal policy in Europe, and robust (US) earnings growth thanks to the AI boom – the market was able to recover from the tariff-induced sell-off in April at an astonishing speed and reach new highs. However, nervousness has not completely disappeared, as evidenced by increased volatility and the price of gold, which has risen sharply this year.

 

Outlook

In summary, we remain optimistic about the start of the new year. Earnings growth in the USA should remain in the double digits, and European growth is starting from a favourable base. Lower interest rates give equities more room for manoeuvre in terms of valuations, and a weaker US dollar also allows regions outside the United States to participate in the equity rally.

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.

The Management Company can decide to suspend the provisions it has taken for the sale of unit certificates in other countries in accordance with the regulatory requirements.

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.

We are not permitted to directly or indirectly offer, sell, transfer, or deliver this financial product to natural or legal persons whose place of residence or domicile is located in a country where this is legally prohibited. In this case, we may not provide any product information, either.

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.

This document does not represent a sales activity of the Management Company and therefore may not be construed as an offer for the purchase or sale of financial or investment instruments.

Erste Asset Management GmbH is affiliated with the Erste Bank and austrian Sparkassen banks.

Please also read the “Information about us and our securities services” published by your bank.