While the stock markets climbed to new record highs in the first half of the year, the first central banks also initiated a turnaround in monetary policy by cutting interest rates. Will the environment remain positive?

In the Funds exclusive series, the fund managers of selected funds look back on developments in the first half of 2024 and give their assessment of what the markets could expect in 2024. (Note: Prognoses are not a reliable indicator of future performance).

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 investments in sustainable investment funds involve risks as well as opportunities.).

Note: Past performance is not a reliable indicator of future performance.

Performance since start of the fund. 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 Ramberger

How did the fund perform in the first half of 2024?

The fund put in an excellent performance in the first half of 2024. After a slight setback in April, the stock exchanges picked up speed again in May and June. The technology sector was the main performance driver.

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

 

What was the focus of the fund in the first half of the year?

The technology sector remained a strong focus, currently accounting for the largest share of the sector allocation at about 39%. The boom in semiconductor companies that design and produce chips for artificial intelligence (Nvidia) continues, and companies associated with artificial intelligence (including software companies) are heavily weighted in the fund. We have also recently stepped up the healthcare sector, with Eli Lilly and Novartis being added to the fund. Industrial and financial companies are further focal points in the portfolio, as US economic growth in 2024 has generated and will continue to generate good company earnings.

 

What does the fund management team expect for the rest of the year in terms of global economy and trends?

There is currently only a low probability of a recession in the second half of the year, and we expect to see interest rate cuts in Europe and the USA.

 

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

As long as the US economy continues to grow, Europe records at least slight growth, and the outlook for interest rate cuts by the US Federal Reserve and the ECB remains intact, we will make only little change to the current sector allocation in the fund.

ERSTE RESPONSIBLE STOCK GLOBAL

Important legal note:

Prognoses are not a reliable indicator for future performance.

Disclaimer

This document is an advertisement. Please refer to the prospectus of the UCITS or to the Information for Investors pursuant to Art 21 AIFMG of the alternative investment fund and the Key Information Document before making any final investment decisions. Unless indicated otherwise, source: Erste Asset Management GmbH. Our languages of communication are German and English.

The prospectus for UCITS (including any amendments) is published in accordance with the provisions of the InvFG 2011 in the currently amended version. Information for Investors pursuant to Art  21 AIFMG is prepared for the alternative investment funds (AIF) administered by Erste Asset Management GmbH pursuant to the provisions of the AIFMG in connection with the InvFG 2011. The fund prospectus, Information for Investors pursuant to Art  21 AIFMG, and the Key Information Document can be viewed in their latest versions at the website www.erste-am.com within the section mandatory publications  or obtained in their latest versions free of charge from the domicile of the management company and the domicile of the custodian bank. The exact date of the most recent publication of the fund prospectus, the languages in which the Key Information Document is available, and any additional locations where the documents can be obtained can be viewed on the website www.erste-am.com. A summary of investor rights is available in German and English on the website www.erste-am.com/investor-rights as well as at the domicile of the management company.

The management company can decide to revoke the arrangements it has made for the distribution of unit certificates abroad, taking into account the regulatory requirements.

Detailed information on the risks potentially associated with the investment can be found in the fund prospectus or Information for investors pursuant to Art 21 AIFMG of the respective fund. If the fund currency is a currency other than the investor's home currency, changes in the corresponding exchange rate may have a positive or negative impact on the value of his investment and the amount of the costs incurred in the fund - converted into his home currency.

Our analyses and conclusions are general in nature and do not take into account the individual needs of our investors in terms of earnings, taxation, and risk appetite. Past performance is not a reliable indicator of the future performance of a fund.