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

Review:

  • Despite increased volatility, equities and bonds performed well.
  • European equities gained support from the German investment package, whereas global equities came under short-term pressure due to US tariff policy.
  • Corporate and emerging market bonds recorded a positive performance.

Allocation:

  • We revised the sustainability approach.
  • We added gold to the mix.
  • We increased the equity allocation in June, placing the focus on Europe. We added equities from Latin America, the healthcare sector, and value shares to the mix.
  • Government bonds: we preferred Europe over the USA.
  • As for corporate bonds, our focus was on high-yield and emerging markets bonds.

Outlook:

  • We still expect higher volatility on the capital markets in 2026 but are confident that the positive factors will prevail for the asset classes of YOU INVEST FLEXIBLE active.

Fund manager Gerhard Beulig
(c) Samuel Kreuz

Fund & Performance

YOU INVEST GREEN active offers investors a dynamic mix of different asset classes. Within the YOU INVEST product family for private customers, it is the fund with a medium risk appetite and suitable for long-term capital accumulation. Price fluctuations can be comparatively high. The portfolio is continuously monitored by our experts and regularly optimized in line with current market opportunities. The fund management is managed within a comprehensible and structured investment process. Investment decisions align with the ERSTE AM responsible approach, considering sustainable and ethical selection criteria.
The fund invests up to 50% in equities or equity funds and up to 100% in bonds or bond funds.

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 Gerhard Beulig

How did the fund perform in 2025?

The fund performance was positive on both the equity and the bond side. The weakness of the US dollar was also partially offset by currency hedging. While developments on the equity markets in the first quarter were driven by Europe (N.B. the investment package in Germany), global markets recovered strongly, particularly after the tariff shock. In the bond sector, Eurozone government bonds remained below expectations, while emerging markets and corporate bonds achieved positive returns.

Note: Please note that an investment in securities entails risks in addition to the opportunities described.

 

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

We revised the sustainability approach in the spring, which meant that gold could also be added to the mix during the course of the year. We stepped up the equity allocation in June, with an increased focus on Europe and additions such as Latin America, healthcare equities, and value shares. In the bond segment, we generally preferred Europe to the United States, as there were fears of weakness in US Treasury bonds due to budget concerns. We generally favoured high-yield and emerging market bonds and kept duration at a rather moderate level. We also held some money market assets.

 

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

We are optimistic due to the expected interest rate cuts, stable economic development, the infrastructure package in Germany, and further global investments in the expansion of digitalisation (keyword: AI). However, valuations have already advanced quite a bit in some equity market segments, which has increased the risk of an interim correction. In the bond sector, we expect moderate inflation, which will nevertheless remain above the Federal Reserve's targets in the United States. Interest rate cuts should still be implemented to a moderate extent, which should lead to a steeper yield curve.

 

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

For the time being, the fund is invested in the upper third of the possible range in the equity markets. The focus here is on healthcare, value shares, energy, and Latin America. A large portion remains invested in the US market. In the bond sector, we prefer high-yield and investment-grade corporate bonds to government bonds. Investments here are made globally. We expect emerging markets bonds to play a greater role due to the increasing convergence of credit quality. The addition of gold remains in place for the time being. The US dollar remains largely hedged.

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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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