Income funds with quarterly distributions
The two mixed funds, Raiffeisen Global Income and Raiffeisen Global Income II, follow essentially the same investment strategies but differ in the level of distributions, risk profile, and return expectations. Both funds rely on proven strengths, particularly:
broadly diversified portfolios of the highest possible yielding assets,
countercyclical and flexible investment strategies,
independence from market indices or benchmarks,
selection of investments with consideration of sustainability issues.
They offer a high net distribution of
around 5 euros per quarter* for Raiffeisen Global Income or
around €9 per quarter for Raiffeisen Global Income II.
In order to generate higher distributions and stronger returns, Raiffeisen Global Income II invests with a higher risk profile, primarily with a higher equity allocation. This is expected to range between 25% and 55%, compared with approximately 8% to 38% for Raiffeisen Global Income.
However, these ranges do not represent hard limits, but rather long-term expectations, and the upper and lower values are likely to be reached in only very few cases. In terms of volume, however, bonds issued mostly by governments and companies always (Raiffeisen Global Income) or almost always (Raiffeisen Global Income II) account for the largest share in both funds.
One investment strategy – two approaches
Raiffeisen Global Income and Raiffeisen Global Income II follow the same basic investment strategies. The fundamental investment decisions, such as increasing or reducing the equity allocation, are therefore the same for both funds, but are implemented in different ways.
Due to its higher equity allocation, Raiffeisen Global Income II also has a higher expected volatility range than Raiffeisen Global Income. Based on past market fluctuations of the individual assets in the funds, value fluctuations are expected to be around 7% p.a. (Raiffeisen Global Income) and around 10% p.a. (Raiffeisen Global Income II) **.
*Please note that distributions may be made from both the fund's income and its capital (i.e., a repayment of the invested capital). In addition, the amount of distributions may be adjusted to reflect expected long-term future income.
**In reality, however, actual fluctuations in value over the course of the year may be either higher or lower than this.
Name change of income funds as of 16 September 2025
In May 2024, the European Securities and Markets Authority (ESMA) published guidelines on the use of names with ESG or sustainability references for investment funds. For the first time, these guidelines now establish Europe-wide rules on the conditions under which a fund name may include sustainability-related terms such as “environment,” “social,” and “governance.” These rules apply to all EU-regulated funds, including institutional mandates (alternative investment funds – AIFs). The aim is to ensure greater clarity and transparency for investors. Since the fund name gives a first impression of the investment strategy and objectives and can therefore influence investment decisions, it is crucial that product names are not misleading for investors.
PAB (Paris-aligned benchmarks)
Where the fund name refers to the environment, the guidelines regulate in particular the negative criteria in accordance with the EU Regulation on Paris-aligned benchmarks (PAB), which, among other things, prohibits investments in companies that generate a certain proportion of their turnover from fossil fuels. Fossil fuels are thus severely restricted by the EU naming directive, but not completely excluded.
This applies not only to direct securities holdings but also to securities invested via sub-funds and derivatives not used for hedging purposes.
Sub-funds and derivatives are an important part of the investment strategy of the Raiffeisen-ESG-Income and Raiffeisen-ESG-Income II funds. Restricting this strategy to instruments that comply exclusively with the PAB negative criteria would have significantly restricted the available investment universe.
Name change
After careful consideration, we have therefore decided to change the names of the two funds so that we can continue to implement the successful investment process unchanged. At the same time, we would like to take this opportunity to give these products, which will continue to be managed as Art. 8 funds, more catchy names.
In future, the funds' individual securities investments will take into account the negative criteria in accordance with the EU regulation on Paris-aligned benchmarks (PAB).
The new fund names will be as follows from September 16, 2025:
Raiffeisen ESG Income becomes Raiffeisen Global Income
Raiffeisen ESG Income becomes Raiffeisen Global Income II
Fund details
Countercyclical investing
Both income funds pursue a long-term, fundamental and countercyclical investment approach. This allows the fund management to react very flexibly to changing market conditions. On the other hand, it follows the business principle that has proven itself over thousands of years: "The profit lies in the purchase!" When valuations are favourable, the fund management buys or increases existing positions; when valuations are higher or prices rise, positions are reduced or completely liquidated. The most important factors here are valuations and earnings expectations. Purchases are therefore not made every time bonds, equities or other assets fall, but only when they reach attractive valuations and earnings levels as a result.
Proven concept, but of course no guarantee of success
This countercyclical approach naturally also has risks and disadvantages. For example, even with its countercyclical approach, fund management may buy too early. Cheap or attractively valued assets can, in principle, always become cheaper or more attractive. Waiting for favourable entry points therefore does not offer complete protection against price losses, but it does reduce these risks and their probability to some extent. However, it is also possible that prices will not fall to the level targeted by the fund management. This would not result in any loss of value for the fund, but could lead to lower returns due to missed opportunities in the market.
Income funds: investment strategy for uncertain times
Current market conditions still offer good return opportunities for both equities and bonds, but market conditions can change quickly. Mixed funds such as the two income funds skilfully combine equities and bonds.
Stocks: Dividends support earnings
Dividend yields are still attractive (in both funds), although not as high as they were a few years ago.
Focus on high-dividend stocks from stable companies with solid business models
Countercyclical investment style allows flexible adjustment of equity allocation depending on market conditions
Bonds: stable foundation through interest income
Relatively attractive yields at present after years of zero or low interest rate policy
Broad diversification of the bond portfolio across various bond asset classes for an optimal balance
As with any financial investment, it is important to carefully weigh up all aspects of Raiffeisen Income Funds. A clear view of the opportunities and risks will help you make an informed decision.
Combination of dividends and interest income
Professional management by the experienced investment specialists at Raiffeisen KAG
Flexible, countercyclical investment approach
Broad diversification of fund assets to reduce individual risks (diversification)
Rising capital market interest rates can have a significant negative impact on bond prices
Stock markets are often subject to unpredictable fluctuations.
Positive performance cannot be guaranteed, and capital losses are also possible.
Attractive long-term investments for forward-thinking investors
Income funds offer a balanced mix of return opportunities and risk management. They are particularly suitable for investors who are looking for higher distributions and are prepared to take on the corresponding capital market risks. Would you like to learn more about the investment strategy and how our income mixed funds work? Contact us now.
The fund rules for Raiffeisen ESG Income and Raiffeisen ESG Income II have been approved by the FMA. Raiffeisen-ESG-Income and Raiffeisen-ESG-Income II may invest more than 35% of their fund assets in securities/money market instruments issued by the following issuers: Canada, United States of America, Japan, Australia, Germany, Finland, Belgium, Spain, Switzerland, Sweden, United Kingdom, Italy, Austria, Netherlands, France.