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

YOU INVEST GREEN progressive offers investors a dynamic mix of different asset classes. Within the YOU INVEST product family for private customers, it is the fund with a dynamic risk appetite and suitable for long-term capital accumulation. Price fluctuations can be rather 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.
The fund invests up to 75% in equities or equity funds and up to 100% in bonds or bond funds.

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

Performance since start of the fund (1.12.2015). 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 the first half of the year?

The fund performed in line with the long-term return estimates in the first half of the year and delivered a noticeably positive result. Equity markets, corporate bonds, and emerging markets bonds all made a positive contribution to performance, whereas developed market government bonds incurred losses.

 

What was the focus of the fund in the first half of 2024?

The equity markets were one of the main drivers of the positive fund performance, with the main positive contribution coming from the USA. The Eurozone bond markets also contributed positively, with a focus on corporate bonds from all rating categories. We invested globally in the high-yield segment. The portfolio was complemented by bonds from emerging markets. We maintained our sustainable investment policy.

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

 

What does the fund management team expect for the second half of 2024 in terms of global economy and trends?

The second half of the year will likely be characterised by a soft-landing scenario for the global economy. Inflation is expected to continue to fall slightly but should remain above central bank targets. That being said, we do expect cautious interest rate cuts. The ECB already executed its first key-lending rate cut in June 2024 of 0.25% to 4.25%.

 

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

With the economy weakening but not in recession, equity markets will continue to have a decisive influence on performance. In the fixed income sector, corporate bonds will retain their large relevance (and allocation). We will also continue to allocate assets to emerging markets, where the interest rate cycle is already further advanced. Government bonds with a long duration will only have a stronger impact on the portfolio structure in the event of surprisingly poor economic development.

YOU INVEST GREEN progressive

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.