Erste Asset Management

Low Return on Assets – where can savers still find decent interest rates?

Low Return on Assets – where can savers still find decent interest rates?
Low Return on Assets – where can savers still find decent interest rates?
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Many savers are fed up investing their saved-up capital at low interest rates. Those who want to finally achieve a good yield have various options: one of them is to invest in fixed-income securities – and the process should be flexible and straightforward, if possible.

This is the question investors are asking themselves today: how to earn a good yield on one’s hard-earned capital in times of low interest rates like nowadays?
The answer: investment funds. For example, funds with fixed-income securities; they come with different maturities and fixed coupon payments accordingly. Even though inflation might fall slightly in the coming year, if you do not invest in funds, you will suffer losses in purchase power. And indeed, you have been doing so for years.

But it does not have to be like that. There are bond segments, both domestically and internationally, that do still pay attractive yields.

US high-yield bonds
• Emerging markets bonds in hard currency (USD or EUR)
• Emerging markets bonds in local currency
• Hybrid bonds (corporate bonds with very long maturities or with no end of maturity at all)

Where do you invest, and how do you allocate your assets? Experienced fund managers dedicate themselves to this question for a new investment fund: ERSTE FIXED INCOME PLUS.

Flexible investments, ongoing adjustment to changes in the market

Our experts are on a constant lookout for the most attractive bonds for this fund. The investment regime is very flexible, as a result of which we can easily seize opportunities on the global markets. The global interest and currency markets are in constant flux. An individual investor can of course not keep track of all these changes and the resulting need for daily professional reassessment.

This is where ERSTE FIXED INCOME PLUS comes in. The managers of this fund react to changes on the markets on a daily basis, by buying individual bonds as well as modular, themed funds. These may for example invest in floating-rate bank bonds, corporate bonds, high-yield bonds, emerging markets issues, and also euro government bonds.

The right mix and deliberate caps/thresholds

The right mix is crucial. There are also caps: unhedged foreign exchange cannot make up more than 25% of assets under management.

In the following, a summary of the performance of the various bond categories throughout the year:

The fund is available as distributing fund, where the returns are distributed annually to the investor, and as accumulating fund, which ploughs back and reinvests the returns.

No fear of price fluctuations anymore

ERSTE FIXED INCOME PLUS is highly suitable for a savings plan with monthly deposits. The ongoing adjustment often yields short-term effect for investors who regularly pay in fixed amounts, seize yield opportunities on the bond market on an ongoing basis, and thus earn a solid yield in the long run and build capital.
Of course, ERSTE FIXED INCOME PLUS is no fund for “a quick buck”. Fund managers recommend a holding period of at least six years.

For further information, please visit: 

Please also have a look at the fund video:

Warnhinweis Erste Fixed Income Plus

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


Legal disclaimer

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 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 Information Document can be viewed in their latest versions at the web site 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 web site A summary of investor rights is available in German and English on the website 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 § 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.