Hands remain shaky – Update from the Investment Division

Hands remain shaky – Update from the Investment Division
Hands remain shaky – Update from the Investment Division
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What has occurred since yesterday?

The hands of many market participants remained shaky and the daily news flow continued to influence the markets. In yesterday’s trading session the US equity index S&P 500 remained slightly positive the whole day. In the last hours of trading the index turned and closed in negative territory with -1,1%. The reason was a report of the health website Stat questioning the data quality of the clinical study of Moderna in regards to a Covid-19 vaccine.

Also the European markets remained in negative territory. The yields of investment grade government bonds remained almost unchanged. Gold could see further gains.

What did we do over the last months in our funds?

We have reported already several times about divergences in the equity markets. E.g. about the winners and losers of the current crisis. The winners are especially above average growth companies. The lead of these companies shows if you look at a global index with growth titles and a global index with value titles:

While global growth titles are only negative year-to-date with 3,8%, the year-to-date loss is – 23% with value titles. The reason is that many growth titles can profit from the current crisis. An example is Microsoft with their video conferencing application, PayPal with the online payment service or Amazon.

On a sector basis there are clear differences. Companies in IT and the health sector show only small losses year-to-date. On the other hand there are titles from the energy sector (oil price drop) and airlines.

In our Multi Asset funds and Discretionary Portfolios we had and have in the equity segment an active positioning in the IT sector and in the health sector, which had a positive performance impact. Also in our equity funds growth and quality titles take a significant part of the portfolios and therefore could gain from the above mentioned developments.


Legal note:
Prognoses are no reliable indicator for future performance.



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This document is an advertisement. 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 Amtsblatt zur Wiener Zeitung in accordance with the provisions of the InvFG 2011 in the currently amended version. Information for Investors pursuant to § 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 § 21 AIFMG, and the key investor document/KID can be viewed in their latest versions at the web site www.erste-am.com 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 investor document is available, and any additional locations where the documents can be obtained can be viewed on the web site www.erste-am.com.

This document serves as additional information for our investors and is based on the knowledge of the staff responsible for preparing it at the time of preparation. 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.