More flexibility for investors: the YOU INVEST line of funds is being gradually realigned starting in March 2025. With the rebranding into YOU INVEST FLEXIBLE, the funds are getting not only a new name but also a more flexible investment strategy and new opportunities: additional diversified sub-funds will be available in which the funds of the YOU INVEST line can invest starting with the realignment. Regardless of this, investors should always bear in mind that investing in securities involves risks as well as opportunities.
We have compiled the most important facts about the realignment of the funds and talked to fund manager Gerhard Beulig about the new opportunities that the portfolios of the YOU INVEST FLEXIBLE funds now offer.
Please note: The name changes and adjustments to the fund regulations listed here are subject to approval by the Austrian Financial Market Authority (FMA).
👉 What you read in this article
YOU INVEST FLEXIBLE – what will be changed?
One of the fund line’s main characteristics has always been the flexible options for our fund management team to adjust the funds’ investment strategy depending on market conditions. As a fund of funds (or umbrella fund), the YOU INVEST FLEXIBLE products continue to invest in various asset classes, such as equities or bonds, via sub-funds. This offers two advantages: first, the respective portfolio is broadly diversified; and second, the fund management team can react quickly to changes in the market. It should be noted that investing in securities also has disadvantages. Investments on capital markets are subject to market price fluctuations. Capital loss is possible.
As the new fund names suggest, the realignment will result in even more flexibility. By switching to a different sustainability standard, the fund management team has additional options at its disposal when it comes to investing the capital of investors in the YOU INVEST FLEXIBLE funds.
In addition to the realignment and the change of names of the funds, the entire fund line is also being reorganised. The YOU INVEST GREEN solid fund will be merged into the YOU INVEST GREEN balanced fund, which will in the future be called YOU INVEST FLEXIBLE balanced. The YOU INVEST GREEN advanced fund will also be merged into the YOU INVEST GREEN progressive fund and will henceforth be called YOU INVEST FLEXIBLE progressive. The YOU INVEST GREEN Portfolio 10 fund will be merged into YOU INVEST GREEN Portfolio 30, which will in the future be referred to as YOU INVEST FLEXIBLE Portfolio 30.
The following is an overview and timeline of the planned name changes and mergers. All information is subject to the approval of the changes by the Austrian Financial Market Authority:
More options
In terms of sustainability, one thing will definitely remain the same: our sustainable investment approach will continue to hold a firm place in all YOU INVEST FLEXIBLE funds, i.e. the funds will remain sustainable funds in accordance with Article 8 of the Sustainable Finance Disclosure Regulation (SFDR).
Whereas the funds have so far invested according to our responsible approach, our ESG integration standard will be applied in the future. On the one hand, this means that exclusion criteria apply to the funds that go beyond our company-wide minimum standards, and on the other hand, we take ESG aspects into account in the investment process – in other words, aspects related to the environment, social issues or corporate governance. This is to ensure that the YOU INVEST FLEXIBLE funds only invest in assets that we have categorised as sustainable based on a predefined selection process.
We rely on additional, diversified sub-funds. More investable sub-funds mean more options for the fund management and a broader diversification for investors. Of course, it should be noted that, regardless of this, an investment in securities always entails a risk of loss.
Fove questions for Fund Manager Gerhard Beulig
How is the term “FLEXIBLE” in the name of the funds reflected in the investment strategy?
There will be a wider set of options available as part of the sustainability strategy that we will be pursuing. In the equity segment, we will have greater flexibility in terms of regions, sectors, and investment styles such as growth shares.
When it comes to bond funds, additional markets can be tapped in the corporate bond, government bond, and emerging markets segments, specifically with regard to countries and regions. In addition, some segments in the commodities area will be investable.
What changes to the investment strategy will you be making as part of the realignment?
The distribution and thus the options of resorting to additional sources of return will be expanded. For example, a particular emphasis on European high-yield bonds or a more defensive orientation of the equity component with regard to the technology sector will be tactically possible. If the assessment of some precious metals remains positive, we may also allocate assets accordingly in the portfolios.
When will you be implementing the changes?
The changes will be implemented for all funds at the same time from around mid-May, subject to the approval by the Austrian Financial Market Authority, following the fund mergers and renaming of the funds.
What are your expectations for the markets in the current year? Where do you see the opportunities and risks for 2025?
In recent months, the equity markets have been strongly driven by various technology companies in the wake of the increased use of various AI applications. We assume that if the US economy continues to perform well, the situation in Europe and China will recover relative to the already negative expectations.
Positive factors could include a containment of the conflict in Ukraine, lower-than-expected tariffs, a positive trend in consumer spending in Europe or public investment. Inflation should ease again after the slight upward trend at the beginning of the year, thus offering potential for interest rate cuts again, particularly in the Eurozone.
What asset classes do you currently regard as particularly interesting for the YOU INVEST FLEXIBLE funds?
We continue to find the global equity markets interesting, although we are cautiously positioned in the technology sector, which has already come a long way performance-wise and is therefore somewhat more ambitiously valued. We continue to like corporate bonds, particularly in the high-yield segment in Europe and Asia. In general, we prefer a lower interest rate sensitivity (duration).
An overview of the most important questions
What does the realignment mean for me as an investor?
The YOU INVEST GREEN line of funds is being rebranded and renamed into YOU INVEST FLEXIBLE – so the main change is the name of the funds. As part of this, the orientation of the funds is also being adjusted. In the future, the YOU INVEST FLEXIBLE funds will invest according to our ESG Integration Standard. This means that, in contrast to the past, more sustainable sub-funds will be investable. As a result, the fund management team has additional options at its disposal for optimally aligning the portfolios of the fund line with the opportunities and risks in the market.
The name change will also be accompanied by the merger of the YOU INVEST GREEN solid fund into the YOU INVEST GREEN balanced fund, which will in the future be called YOU INVEST FLEXIBLE balanced. YOU INVEST GREEN advanced will also be merged into YOU INVEST GREEN progressive and will henceforth be called YOU INVEST FLEXIBLE progressive. YOU INVEST GREEN Portfolio 10 will be merged into YOU INVEST GREEN Portfolio 30, which will in the future be referred to as YOU INVEST FLEXIBLE Portfolio 30.
What about the sustainability orientation of the YOU INVEST FLEXIBLE funds?
We use our ESG Integration Standard to ensure that the management of the YOU INVEST FLEXIBLE funds is sustainably aligned. This means that we apply sustainable exclusion criteria in the fund that go beyond our minimum criteria. We also analyse whether a company takes financial or ethical sustainability aspects into account. This is to ensure that we only invest in companies that meet our sustainability standards.
How can I invest?
Investors can buy the YOU INVEST FLEXIBLE funds either from their own bank or other distributors, at branches of Erste Bank and Austrian savings banks, or online via George, the online banking service of Erste Bank. They can choose between a one-time investment or a fund savings plan, which is particularly interesting for savers with a long-term horizon. This is possible from as little as EUR 30 a month.
Whether you choose the first or second option, both entail risks as well as opportunities. With a fund savings plan, you can take advantage of the average cost effect and build wealth step by step over the long term. However, it should be noted that this average cost effect decreases as the savings plan progresses, since the accumulated assets increasingly behave as if you had invested the total amount in a single investment. Depending on market developments, a one-off investment can also prove to be more favourable.
What opportunities and risks does an investment entail?
Opportunities:
- A modern, active investment strategy ensures a good balance between risk and return.
- The flexible orientation and the opportunity for the fund manager to invest in various asset classes opens up additional opportunities.
- The broad investment across various asset classes diversifies the risk, which can reduce the risk of loss.
- You can sell your YOU INVEST FLEXIBLE fund at the current redemption price at any time.
Risks:
- Investments on capital markets are subject to market price fluctuations.
- Capital loss is possible.
- Exchange rate fluctuations can negatively affect the fund price.
- The following risks may be of particular relevance to the fund: credit risk, counterparty risk, liquidity risk, deposit risk, derivative risk, and operational risks. For comprehensive information on the risks of the fund, please refer to the prospectus and to the information for investors according to sec. 21, part II, chapter “Risk notices” of the Austrian Alternative Investment Fund Managers Act
Warning notices according to the Austrian Investment Fund Act of 2011
YOU INVEST GREEN active, advanced, progressive, balanced, solid, Portfolio 10, Portfolio 30 and Portfolio 50 may make significant investments in demand deposits or time deposits with a maximum maturity of 12 months pursuant to section 72 of the 2011 Austrian Investment Fund Act.
YOU INVEST GREEN active, advanced, progressive, balanced, solid, Portfolio 10, Portfolio 30 and Portfolio 50 may make significant investments in investment funds (UCITS, UCI) pursuant to section 71 of the 2011 Austrian Investment Fund Act.
YOU INVEST GREEN Portfolio 10, Portfolio 30 and Portfolio 50 may make significant investments in derivatives (including swaps and other OTC derivatives) pursuant to section 73 of the 2011 Austrian Investment Fund Act.
The funds employ an active investment policy and are 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 the funds 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 the funds, consideration should be given to any characteristics or objectives of the funds as described in the Fund Documents.
Prospectuses: