ERSTE STOCK QUALITY
Quality over quantity
ERSTE STOCK QUALITY:
Quality over quantity
When you invest in an equity fund, you are investing in many different stocks. Our fund managers select these stocks for you. ERSTE STOCK QUALITY is an equity fund that invests globally in high-quality companies. The portfolio consists of 25 stocks because each one is of high quality. A concentrated portfolio can outperform the broader stock market and be more cost-effective, but it offers less diversification. This means it may be subject to greater price fluctuations and capital loss. Please note that investing in securities involves both opportunities and risks.
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Our Three Steps in the Investment Process
Investment universe
The investment universe consists of around 5,000 stocks. From this, only the top 20% of stocks from developed countries worldwide are selected. The result is approximately 1,000 stocks.
Fundamental share analysis
Once these 1,000 stocks have been identified, stock analysis is carried out. We consider the following factors:
- Positive earnings momentum: This means the company’s earnings are likely to increase.
- Attractive valuation: The company is well-valued.
- Positive Economic Value Added: The company creates more value than it incurs in costs.
- Strong Piotroski F-Score: The company has solid financial indicators.
- Classic quality criteria: The company meets well-known quality standards.
- Positive technical chart signals: The stock’s price trend looks favorable.
- Minimum rating of A- from major rating agencies: The company has at least an A- rating.
Portfolio construction
After that, we select the 25 best stocks for the concentrated equity portfolio. The portfolio looks as follows:
Portfolio characteristics:
- Large and Mega Caps: Large companies.
- Equally weighted: All stocks have the same weighting.
- Replacement upon new entry: When a new stock is added, an existing one is replaced.
- Country and sector allocation: The selection of stocks determines the distribution by country and industry.
- Foreign currency not hedged: Exchange rate risks are not hedged.
- No derivatives: No financial instruments derived from other assets are used.
- No benchmark: There is no benchmark index.
It should be noted that key figures are based on past performance and, like past performance, are no guarantee of positive performance in the future. Past performance does not allow any reliable conclusions to be drawn about the future performance of a fund.
Examples of Companies
The companies mentioned are examples only and not a recommendation to buy. There is no guarantee that these companies will always be included in the fund.
ABB is in the top 3 worldwide in several business areas, including electrification and process automation. This strong market position enables ABB to maintain and grow significant market share. ABB invests approximately 4-5% of its revenue in research and development each year, resulting in breakthrough innovations in electrification and automation.
This continuous investment secures ABB's position as a technology leader. ABB develops visionary solutions for the future of energy, transportation and industry. These include technologies for smart cities, electromobility and advanced manufacturing systems. This innovative strength positions ABB as a key investment in areas driven by megatrends such as urbanization, digitalization and decarbonization, offering long-term growth potential.
NVIDIA controls between 70% and 95% of the market for AI accelerators used to train and deploy models such as OpenAI's GPT. This strong market position enables NVIDIA to maintain and grow significant market share, making the company an indispensable player in the global AI market.
NVIDIA has established strategic partnerships with leading technology companies such as Alphabet, Meta and Microsoft to further strengthen its market position. These alliances extend NVIDIA's influence and enable the company to explore new business opportunities and integrate its technologies into a wide range of applications.
Netflix is continuously developing innovative content and formats to increase viewer loyalty. The introduction of interactive series and the use of data analysis to personalize content are just a few examples of the company's innovative strength.
This innovative strength positions Netflix as a key investment in a market driven by megatrends such as digitalization and individualization. Netflix is the undisputed market leader in the streaming sector, with a significant lead over its competitors. They have had more top 10 titles in the last three years than all other streaming services combined.
Opportunity for value appreciation
Your money is invested in promising sectors.
Quality shares
You invest in a concentrated portfolio consisting of quality shares.
Broad diversification
Risk diversification through broad diversification across several countries and sectors.
Price fluctuations
The price of the fund can fluctuate significantly due to various influencing factors.
Exchange rate changes
Due to the investment in foreign currencies, the fund value may be adversely affected by changes in exchange rates.
Capital loss possible
Capital loss is a possible consequence of investing in the stock market.
With George to ERSTE STOCK QUALITY
Investing in securities involves risks as well as opportunities.
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Disclaimer
This document is an advertisement. Please refer to the prospectus of the UCITS or to the Information for Investors pursuant to Art 21 AIFMG of the alternative investment fund and the Key Information Document before making any final investment decisions. All data is sourced from Erste Asset Management GmbH, unless indicated otherwise. 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 Art 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 Art 21 AIFMG, and the Key Information Document can be viewed in their latest versions at the web site www.erste-am.com 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 www.erste-am.com. A summary of investor rights is available in German and English on the website www.erste-am.com/investor-rights 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 Art 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.
The issue and redemption of unit certificates and the execution of payments to unit holders has been transferred to the Fund's custodian bank/depositary, Erste Group Bank AG, Am Belvedere 1, 1100 Vienna, Austria. Redemption requests can be submitted by investors to their custodian bank, which will forward them to the Custodian Bank/Depositary of the Fund for execution via the usual banking channels. All payments to investors are also processed via the usual banking clearing channel with the investor's custodian bank. In Germany, the issue and return prices of shares are published in electronic form on the web site www.erste-am.com (and also at www.fundinfo.com). Any other information for Shareholders is published in the Bundesanzeiger, Cologne.
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