Erste Asset Management

Short-term opportunities or long-term trends – why not both?

Short-term opportunities or long-term trends – why not both?
Short-term opportunities or long-term trends – why not both?
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With the new mixed fund ERSTE OPPORTUNITIES MIX, investors can not only invest in long-term trends such as environmental protection or digitalisation, but also take advantage of short-term opportunities on the market. In this interview, Alexander Lechner, Head of Multi-Asset Management, reveals how this works and what is special about the fund’s investment strategy.

Please note that investing in securities involves risks as well as opportunities.

Can you explain the concept of ERSTE OPPORTUNITIES MIX in a few sentences?

It actually only takes one sentence to describe the fund: ERSTE OPPORTUNITIES MIX invests in promising themes and trends without being confined to one single asset class. In other words, we are launching a thematic multi-asset fund that firstly invests in long-term megatrends and secondly also makes use of short and medium-term themes and opportunities on the market. (Please note that investing in securities entails risks as well as opportunities).

Why does it make sense to invest in several asset classes for this and not just confine yourself to equities, for example?

Some themes and opportunities cannot be covered by a single asset class such as equities. In addition to equities, we also have bonds, commodities, currencies, and (listed) private market investments at our disposal. This clearly distinguishes ERSTE OPPORTUNITIES MIX from traditional megatrend funds, which can generally only invest in equities and therefore only cover themes that can benefit from rising equity markets. (Please note that investing in securities involves risks as well as opportunities).

On what long-term trends do you bet in the fund?

In terms of long-term trends, we are thinking primarily of four super-themes that we have identified:

  • Measures to combat climate change and environmental protection
  • Demographics
  • Digitalisation
  • global transformation.

We believe that companies (or their shares and bonds), countries, and commodities associated with these super-trends should perform well in the long term. We have also identified more than 50 sub-trends within these four super-trends. In our new fund, we will select those themes that we believe come with an attractive risk/return profile.

At the outset, you also talked about short and medium-term issues and opportunities. What do you mean by this?

The super-trends discussed so far have determined the long-term growth path of the global economy. In the following chart, this is symbolised by the pink line. Around this path is the medium-term economic cycle (blue line), which consists of recovery, boom, downturn, and recession.

Long-term growth and medium-term economic cycle. Source: Erste Asset Management

In addition to long-term themes, we will also invest in short and medium-term opportunities that emerge from the economic cycle. For example, promising investments generally command favourable valuations during a recession, while the opposite is the case during a boom. It may make sense to add cyclical equities from the financial or energy sector during the recovery phase. (Please note that investing in securities involves risks as well as opportunities).

What could investments in such short and medium-term topics look like in practice?

In the bond segment, Mexican government bonds could currently be interesting from a medium-term perspective. This is due to the fact that the interest rate cycle in the emerging markets is in a different phase than in the developed economies.

The so-called “fallen angels” also offer opportunities time and again. These are bonds issued by companies that have been downgraded from investment grade to high-yield. Although this means that the credit quality has deteriorated somewhat, it does not usually mean that the company is on the verge of bankruptcy.

In the event of a downgrade, many investors are forced to sell these bonds, for example fund managers of investment grade bond funds, but also banks and insurance companies. This leads to considerable selling pressure, which in turn pushes bond prices down. This creates attractive investment opportunities whose risk can be very attractive in relation to the financial outlay.

Companies that we would hold in the fund include Marks & Spencer and Royal Caribbean Cruises, an operator of cruise ships which has launched the largest of its kind this year.

Please note: the companies listed here have been selected as examples and do not constitute an investment recommendation.

You also mentioned private markets. What did you mean by that?

Private markets in their original form represent investments in assets that are not listed on a stock exchange. Given that financing via private markets has increased significantly in recent years, we can also consider this a megatrend. We also want to benefit from this in our new fund. It includes investments in established companies (private equity) or young, disruptive companies (venture capital). Another example are infrastructure investments, bridges, toll roads, but also network infrastructure for the internet or renewable energies.

For regulatory reasons, we are not allowed to invest in traditional private equity funds, but there are now a large number of exchange-traded investments that come in two forms:

  • Closed-end funds that effect the investments as just described
  • Shares in the asset managers who manage such funds and where you can participate in their success

What would the portfolio look like now? Where would you invest?

We currently hold around 70% in long-term investments and 30% in short and medium-term investments. The following chart provides an overview of the themes we hold in the fund:

Current portfolio of ERSTE OPPORTUNITIES MIX by theme and maturity. Source: Erste Asset Management

In addition, we have also “folded out” some of the topics and listed sample investments that would cover them:

Please note: where the portfolio positioning of funds is disclosed in this document, it is based on the status of the market development at the time the document was being prepared (14 May 2024). In the context of active management, the positionings in the portfolio mentioned may change at any time. The companies listed here have been selected as examples and do not constitute an investment recommendation. There is no guarantee that the respective security will be permanently included in the portfolio.

What about sustainability criteria in the fund?

We do take sustainability criteria into account for the fund. This is important to us, because in order to assess an investment holistically, it is also necessary to comprehensively assess the sustainability risks. The fund will be categorised as Article 8 pursuant to the Sustainable Finance Disclosure Regulation (SFDR) and will follow our in-house integration standard.

At the pulse of opportunity

ERSTE OPPORTUNITIES MIX gives you the chance to participate continuously in the opportunities provided by the market. The fund combines long-term focus themes with latest market developments.
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Warning notice according to the Austrian Investment Fund Act of 2011

ERSTE OPPORTUNITIES MIX may invest a significant portion of its assets under management in shares of investment funds (UCITS, UCI) as defined by sec 71 of the Austrian Investment Fund Act of 2011.

The fund pursues an active investment policy and does not follow a benchmark. The assets are selected at our discretion, without any constraints to the latitude of judgement on the investment company’s part. Please note that investing in securities also harbours risks in addition to the opportunities described above.

For further details on the sustainable strategy of ERSTE OPPORTUNITIES MIX and on the Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector and the Taxonomy Regulation (Regulation (EU) 2020/852) please refer to the current prospectus, section 12 and the appendix, “Sustainability principles”. When deciding to invest in ERSTE OPPORTUNITIES MIX, please take into account all features and goals of ERSTE OPPORTUNITIES MIX as described in the fund documents.


Legal disclaimer

This document is an advertisement. Unless indicated otherwise, source: Erste Asset Management GmbH. The language of communication of the sales offices is German and the languages of communication of the Management Company also include English.

The prospectus for UCITS funds (including any amendments) is prepared and published in accordance with the provisions of the InvFG 2011 as amended. 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 conjunction with the InvFG 2011.

The currently valid versions of the prospectus, the Information for Investors pursuant to § 21 AIFMG, and the key information document can be found on the website under “Mandatory publications” and can be obtained free of charge by interested investors at the offices of the Management Company and at the offices of the depositary bank. The exact date of the most recent publication of the prospectus, the languages in which the key information document is available, and any other locations where the documents can be obtained are indicated on the website A summary of the investor rights is available in German and English on the website and can also be obtained from the Management Company.

The Management Company can decide to suspend the provisions it has taken for the sale of unit certificates in other countries in accordance with the regulatory requirements.

Note: You are about to purchase a product that may be difficult to understand. We recommend that you read the indicated fund documents before making an investment decision. In addition to the locations listed above, you can obtain these documents free of charge at the offices of the referring Sparkassen bank and the offices of Erste Bank der oesterreichischen Sparkassen AG. You can also access these documents electronically at

N.B.: The performance scenarios listed in the key information document are based on a calculation method that is specified in an EU regulation. The future market development cannot be accurately predicted. The depicted performance scenarios merely present potential earnings, but are based on the earnings in the recent past. The actual earnings may be lower than indicated. Our analyses and conclusions are general in nature and do not take into account the individual characteristics of our investors in terms of earnings, taxation, experience and knowledge, investment objective, financial position, capacity for loss, and risk tolerance.

Please note: Past performance is not a reliable indicator of the future performance of a fund. Investments in securities entail risks in addition to the opportunities presented here. The value of units and their earnings can rise and fall. Changes in exchange rates can also have a positive or negative effect on the value of an investment. For this reason, you may receive less than your originally invested amount when you redeem your units. Persons who are interested in purchasing units in investment funds are advised to read the current fund prospectus(es) and the Information for Investors pursuant to § 21 AIFMG, especially the risk notices they contain, before making an investment decision. If the fund currency is different than the investor’s home currency, changes in the relevant exchange rate can positively or negatively influence the value of the investment and the amount of the costs associated with the fund in the home currency.

We are not permitted to directly or indirectly offer, sell, transfer, or deliver this financial product to natural or legal persons whose place of residence or domicile is located in a country where this is legally prohibited. In this case, we may not provide any product information, either.

Please consult the corresponding information in the fund prospectus and the Information for Investors pursuant to § 21 AIFMG for restrictions on the sale of the fund to American or Russian citizens.

It is expressly noted that this communication does not provide any investment recommendations, but only expresses our current market assessment. Thus, this communication is not a substitute for investment advice, does not take into account the legal regulations aimed at promoting the independence of financial analyses, and is not subject to a prohibition on trading following the distribution of financial analyses.

This document does not represent a sales activity of the Management Company and therefore may not be construed as an offer for the purchase or sale of financial or investment instruments.

Erste Asset Management GmbH is affiliated with the referring Sparkassen banks and Erste Bank.

Please also read the “Information about us and our securities services” published by your bank.

Subject to misprints and errors.

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