The equity market is one of the most productive parts of an economy. Listed companies are being closely monitored by many market participants and must therefore deliver results for their shareholders.
The equity market distinguishes between companies that rely on a business model that promises new growth opportunities (growth shares), e.g. in the field of artificial intelligence, and companies that are more active in traditional sectors and industries and regularly pay dividends (value shares).
Global equities – performance in recent years:
Global equities overall vs. global growth shares and global value shares (09/2004 – 09/2023)
Note: Past performance is not a reliable indicator of the future performance of the fund. Representation of an index, no direct investment possible. The indices mentioned were used for comparison purposes only. The comparative indices have no influence on the discretionary power of the management company in selecting the assets of ERSTE FUTURE INVEST.
Growth shares have the edge
Since the 2010s, growth-oriented shares have clearly outperformed traditional companies. This has to do with the enormous technological developments that we have seen since the turn of the millennium.
We are at the beginning of far-reaching developments in people’s lifestyles, the use of new technologies (e.g. artificial intelligence), ground-breaking advances in healthcare or in the environment (e.g. clean energy). Megatrends generate growth and thus opportunities for investors who invest in the most exciting companies.
Does it make sense to invest in megatrends?
Over the past years, it would have made sense to invest in megatrends and the growth companies behind them. At the same time, the past performance of investments is no guarantee that they will continue to perform positively in the future.
What is more interesting, therefore, is the future, long-term earnings potential of investments in megatrends. Let’s ask one of the megatrends itself – artificial intelligence:
ERSTE FUTURE INVEST: a future-oriented investment in megatrends
Megatrends therefore have the potential to last for many years and to bring about significant changes in all our lives. ChatGPT is also convinced that investors can benefit from the growth opportunities that these trends offer. However, as the artificial intelligence-based chat service points out, thorough research and balanced diversification are particularly important.
The first piece of good news: with a fund, you don’t have to worry about that. You invest broadly across many companies. The research that helps identify the best and most promising companies is done for you by the fund management team.
The second piece of good news: the broadly diversified and global ERSTE FUTURE INVEST equity fund gives you the chance to invest directly in five megatrends:
- healthcare & pension,
- lifestyle,
- technology & innovation,
- environment & clean energy, and
- emerging markets.
In the selection process, shares are selected that belong to one or more of the above-mentioned trends. The individual shares are selected on a qualitative basis by a fund manager. The fund is broadly diversified and invests globally. There are currently around 60 companies in the portfolio, with a small proportion of special equity funds blended in (e.g. topics such as biotechnology, robotics, digital security).
Top 15 in ERSTE FUTURE INVEST:
| Company | Megatrend | Country |
| Microsoft | Technology, Software, Innovation | USA |
| Nvidia | Artificial Intelligence | USA |
| Novo Nordisk | Nutrition, Lifestyle | Denmark |
| Amazon | E-Commerce, Digital Services | USA |
| Alphabet | Technology, Innovation | USA |
| Biotech-Aktienfonds | Demographics, Healthcare | Global |
| ASML | Technology, Innovation | Netherlands |
| Scout 24 | Lifestyle | Germany |
| Fisery Inc. | Payment service provider | USA |
| ABB Ltd. | Energy supply, Industry, Transport | Switzerland |
| EnerSys | Leading provider of batteries, chargers etc. | USA |
| Mastercard | Global payment service provider | USA |
| Stryker Corp. | Medical engineering | USA |
| Abbot Laboratories | Pharmaceutical and medical products | USA |
| Taiwan Semiconductor | Semi-conductors | Taiwan |
Source: Erste Asset Management; the data is based on the market development as of the editorial deadline (28 September 2023). In the context of active management, the portfolio positions mentioned may change at any time. The companies listed here have been selected as examples and do not constitute an investment recommendation.
The fund employs an active investment policy and is not oriented towards a benchmark. The assets are selected on a discretionary basis and the scope of discretion of the management company is not limited.
For further information on the sustainable focus of ERSTE FUTURE INVEST as well as on the disclosures in accordance with the Disclosure Regulation (Regulation (EU) 2019/2088) and the Taxonomy Regulation (Regulation (EU) 2020/852), please refer to the current Prospectus, section 12 and the Annex “Sustainability Principles”. In deciding to invest in ERSTE FUTURE INVEST, consideration should be given to any characteristics or objectives of the ERSTE FUTURE INVEST as described in the Fund Documents.
Advantages for the investor
- Participation in global, promising future topics (“megatrends”).
- Investment in an actively managed portfolio consisting of quality and growth stocks.
- Risk diversification across multiple countries and industries.
Risks to be considered
- The securities in the portfolio may be subject to increased price fluctuations.
- Due to investments denominated in foreign currencies, the net asset value of the fund can be negatively impacted by currency fluctuations.
- Capital loss is possible.
- Risks that may be significant for the fund are in particular: credit and counterparty risk, liquidity risk, custody risk, derivative risk and operational risk. Comprehensive information on the risks of the fund can be found in the prospectus or the information for investors pursuant to § 21 AIFMG, section II, “Risk information”.
For a glossary of technical terms, please visit this link: Fund Glossary | Erste Asset Management
Legal note:
Prognoses are no reliable indicator for future performance.