Erste Private Bank’s chief investment office (CIO) has delivered robust performance to private banking clients in Central and Eastern Europe, anchored by proactive positioning amid shifting macroeconomic conditions.
At the end of 2023, the CIO team capitalised on a steep decline in bond yields by extending duration exposure, a move that bolstered returns in fixed income and multi-asset portfolios. This set the stage for a strong start to 2024, with active duration management – responsive to evolving inflation and growth data – continuing to generate consistent client returns.
The CIO maintained a neutral-to-overweight stance in equities throughout the review period, a decision that proved prescient. Equity strategies surged by 19%–21%, while multi-asset portfolios posted gains of 11%–16%, driven by tactical allocations and cross-asset diversification. The latter also benefited from strategic additions of investment-grade and high-yield corporate bonds, which enhanced yield capture without compromising risk parameters.
Another critical move was the introduction of gold to multi-asset portfolios, marking the first such allocation in the office’s history.
