Erste Asset Management - Blog

Artikel zu Schlagwort: equities
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Gerold Permoser am 04th July 2017

Germany: is the economy about to face a hot summer?

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The IFO business climate index calculated by the Munich-based IFO Institute is regarded as the most important German economic indicator. At 115.1, the value released for June last week was the highest since the launch in January 1991. It was also clearly above the value that had been expected by the financial analysts on average. The signs for substantial economic growth in Germany seem favourable.

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Gerhard Winzer am 06th June 2017

The global economy based on the Goldilocks principle

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The global economy is growing moderately, inflation is low, and the monetary policy is loose. This environment supports many asset classes from bonds to equities. The political uncertainty has been absorbed rather well so far too. Will this situation last?

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Gast-AutorIn / Guest Author am 31st May 2017

The “rediscovery” of the Vienna stock exchange

(c) Akos Stiller, Quelle: Wiener Börse

Author: Dieter Kerschbaum, Communications Specialist Austria

On 31 May the Vienna Stock Exchange Award will be celebrated and awarded to the winner. The day is dedicated to the financial centre of Austria, and the award is accompanied by numerous other events that are geared towards drawing investors’ attention to the domestic stock exchange. Erste Asset Management is one of the biggest investors at the Vienna stock exchange. In the past five years, the Vienna stock exchange has seen a clear upward trend. We spoke about the reasons for the steep upswing, possible risks, and the future perspective with Bernhard Ruttenstorfer, manager of the equity fund ESPA STOCK VIENNA:

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Gast-AutorIn / Guest Author am 17th May 2017

Afterthoughts on the Turkish referendum

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Author: Sevda Sarp
Research Analyst

After the ballots were counted on 16 April 2017, the state-run Anadolu news agency reported that “Yes” had won by securing 51.4% of the votes, which was later also confirmed by the Electoral Commission. Serious concerns were raised by the OSCE. It is also important to note that the referendum took place during a “state of emergency”. That is to say, in a highly repressive climate in which the President and the government controlled the media, jailed critical journalists and leaders of pro-Kurdish parliamentary opposition, and arbitrarily detained and prosecuted the President’s opponents. The result of the referendum has paved the way for the most controversial changes that Turkey has faced in its history.

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Paul Severin am 12th May 2017

What investors can learn from Maria Theresia and the Vienna stock exchange

(c) akg-images / picturedesk.com

Austria celebrates the 300th birthday of Maria Theresa. She was born on 13 May 1717 in Vienna. It was her who founded the Vienna stock exchange in 1771 on the basis of an imperial patent (see image), after an earlier, failed attempt in 1761. Even though a lot has changed politically, economically, and technically since then, the eventful history of the Vienna stock exchange is still very instructive for every investor.

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Gast-AutorIn / Guest Author am 28th March 2017

Megatrends in the IT sector

Author: Bernhard Ruttenstorfer
Senior Fundmanager Equities

 
At this year’s IT trade fair CEBIT, the focus was on robots that support humans in their daily routine; on drones that can be used for difficult jobs in the field such as oil rigs; driverless electro busses that are steered by sensors and accelerate and stop autonomously; and various other technological innovations that are no fiction but have in fact already entered our daily lives. Of what relevance are they for the economy, for companies, for consumers – and for investors?

Technologies that support mankind

The information technology (IT) sector has transformed dramatically over the past 20 years. While back in the days “IT” primarily meant personal computers and the first internet applications, the meaning of these technologies has changed comprehensively since then. IT-specific products and solutions are employed across many sectors: communications, traffic, healthcare, manufacturing, retail, safety, consumer goods etc. How do the aforementioned megatrends manifest themselves? Critics will quickly point out that this is all about replacing man with machinery. But haven’t we been hearing this sort of scepticism for years? Should we not approach this situation from the other end? Is this not all about machinery and technologies that support mankind?

Data: the big business

In most cases the benefits of technological progress are of relevance when two or more developments meet and cross-fertilise each other. Cloud computing and social networks are a good example: cloud computing allows the user to access their applications from various interfaces (smartphone, tablet, PC) and to process data there. Facebook, with more than 1.8bn users, offers exactly those options: the users can upload photos, videos, or other information to their account at all times. Data and not stored on the device, but on a server operated by facebook (private cloud). There they can be accessed 24/7. With other kinds of clouds, the data are not processed on servers of the software provider, but via the infrastructure/server of external server providers (public cloud). The US online video library Netflix uses this technology. Netflix film material is also stored on servers of the (also) listed US online mail order company Amazon. Users access it via streaming. The advantage is that companies and users can employ their resources more efficiently: Netflix rents the capacity that its users actually require on a continuous basis. The users can watch films whenever and especially wherever they want: on the TV set at home, on the laptop, or on the mobile phone.

Big step from automatic parking to autonomous driving?

The topic of robotics has also become more prominent. Industrie 4.0, “Internet of Things”, Autonomous Driving – all these applications rely on data processing via cloud services. The ongoing improvement of sensor capacity has fostered their increasing popularity. In combination with specific software, new fields of application emerge. Autonomous driving is currently a media buzzword. The investments by leading companies are promising. Google, NVidia, or Tesla, to name but a few, are constantly making progress. While the step to the commercial use of autonomous driving may still be a sizeable one, the functions supporting the driver are already in use today. Lane departure warning system, automatic parking, and automatic braking are no uncharted territory for drivers anymore.

Significant earnings increase of listed technology companies

The developments of the past years are also reflected in the financial results of the listed technology companies despite the slight decrease in growth in 2016 due to intermittently reduced IT investments. The consensus estimates of analysts forecast earnings growth of more than 10% p.a. for 2017 to 2019. Share prices have also risen impressively in the IT sector. The robust earnings increase keeps valuations stable and below the long-term average.

Source: Bloomberg, EAM, 16.03.2017
Since the burst of the technology bubble at the beginning of 2000 and the frictions during the financial crisis in 2008/09, technology shares have experienced years of rising prices. But in contrast to (the period leading up to) 2000, valuations have remained low and shares are not overvalued.

Conclusion

It is the combination of megatrends and economically successful companies from the IT sector that confirms our positive attitude towards the technology sector. The megatrends in this sector ensure continuous growth in the coming years. The applications are integrated into the process of companies and the economy on an ongoing basis. The possibilities for consumers to use these technologies are being expanded.
 

Investing in technology stocks

The ESPA STOCK TECHNO* offers the chance to invest in the high-growth technology sector. This equity fund of ERSTE-SPARINVEST contains the most important technology companies worldwide. ESPA STOCK TECHNO works also as additional fund in an already existing equity portfolio mix and is suitable for investors with adequate willingness to assume risk and with a long-term horizon.

 

The author:
Bernhard Ruttenstorfer is Senior Fund Manager in the equity fund management team of ERSTE-SPARINVEST and has been responsible for ESPA STOCK TECHNO since July 2010. He holds a Master in Business Administration from the Vienna University of Economics and Business Administration and the degree of Certified Portfolio Manager (CPM).

 

*Risk notes according to 2011 Austrian Investment Fund Act
ESPA STOCK TECHNO may exhibit increased volatility due to the composition of its portfolio: i.e. the unit value can be subject to significant fluctuations both upwards and downwards within short periods of time.

 

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Gabriela Tinti am 03rd March 2017

Equity performance: focus on emerging markets

The stock exchanges in the emerging economies and their performances have fallen short of expectations in recent years. Speculations about the weakening economy of China, the decline of commodity prices, and an appreciating US dollar have had a detrimental effect on emerging markets. However, the trust of investors in these markets has been making a comeback since 2016. In spite of Donald Trump’s election victory and the fear of a US policy of protectionism, the emerging economies are currently outperforming the developed ones.

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Harald Egger am 16th February 2017

5 facts that favour dividends

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Many investors focus on capital gains while disregarding the significance of dividends. And are wrong in doing so, from my point of view. The total return of a share is after all the sum of capital gains (i.e. rising prices) and dividend income. Income from dividends is of particular relevance for investors with a long-term investment horizon.

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Peter Szopo am 07th February 2017

Equities: Threats and opportunities of rising interest rates

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US interest rates are on the rise. It took the Federal Reserve Bank (“Fed”) twelve months, after the initial lift-off in December 2015, to make the second move, but for two reasons the odds of more frequent rate hikes over the next twelve months have increased. First, the Fed has turned more hawkish and second, inflation expectations have started ticking higher. Only recently, Chairwoman Yellen warned that “waiting too long to begin moving toward the neutral rate could risk a nasty surprise down the road–either too much inflation, financial instability, or both.

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Peter Szopo am 20th January 2017

Equity investors: Are they ignoring risks?

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The year 2016 was full of surprises. It was, for example, the year, when an outsider overcame odds of 5000 to 1 to win the Premier League. It was also the year, when the lyrics of three-minute pop songs were acknowledged to be an art form worth the Literature Nobel. Most importantly, however, politics in the Western hemisphere surprised big time with the vote for Brexit and the election of Donald Trump as the next US president.

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