The turbulences on the financial markets have unsettled many people in recent years, and the financial world has – understandably – lost a certain degree of favour and trust. Therefore YOU INVEST puts price stability and return first. However, a success cannot be guaranteed. The investment experts of ERSTE-SPARINVEST monitor the financial markets on a daily basis and actively manage your invested capital. The modern investment strategy and a broad diversification ensure the optimal balance of return and risk, according to your ideas. Thus, your assets are optimally invested at all times.
Variable asset allocation
The flexible use of a diverse range of asset classes is a crucial element of success for any long-term investment. Every asset class comes with different chances of return as well as with different risks of loss. In order to produce an optimal risk/return profile, we diversify the investments over a broad range of asset classes such as money market instruments, equities, bonds, or alternative investments. We also invest in different regions and currencies. The weighting of the individual asset classes is based on the risk specifications of the respective YOU INVEST fund in connection with the mutual correlation of the prices of the various asset classes. In the overall portfolio, the risk/return profile is the better the lower the mutual correlation of the various asset classes is. The negative performance of one asset class can be offset by the positive development of other classes in a portfolio context.
The long-term goal of the YOU INVEST range of products is to generate returns while sticking to the respective risk specifications. To this end, the fund managers actively regroup portfolios in order to minimise losses and seize opportunities. The basic idea of this strategy is to avoid excessive fluctuations in the value of YOU INVEST.
YOU INVEST is based on a systematic and time-tested investment process. This results in disciplined investment decisions aimed at an optimal portfolio structure. The investment process consist of three steps:
Step 1: base portfolio
This is where a neutral base portfolio is established in line with the respective risk specifications within the admissible bandwidths of the various asset classes and possible investment restrictions.
Step 2: tactical asset allocation
Within the framework of the bandwidths established in the base portfolio, we make short-term adjustments in terms of weightings of the individual asset classes to the specific market environment. The equity portion of the portfolio also undergoes an active country allocation. We assume foreign exchange risk on a temporary basis if our experts expect a positive development of the currency in question.
Step 3: sub-fund selection
Here we select the best sub-funds for the various asset classes on the basis of extensive research. Both funds from the ERSTE-SPARINVEST range and external funds may enter the picture.