Investment process

Quality and principles

Erste Asset Management currently manages assets worth EUR 61.43bn, EUR 38.65bn thereof managed for institutional investors, with a rising tendency Aug 31, 2019. We offer our institutional clients an investment approach that is based on the four pillars of team approach, flexibility, consistency in an optimal fashion, our fund managers work closely with our in-house Research department. Our expert invest according to clearly defined processes, which are based on quality-assuring principles:

Team approach




Intensive and permanent exchange between fund managers and analysts Good and direct communication between team members and the management of the Investment Department facilitates quick reaction to the market The investment approaches are clearly defined, followed with a high degree of discipline, and continuously being developed The decisions of our fund managers are transparent and can be traced at any time. This is the only way that processes can be evaluated and improved comprehensively

The right strategy for every asset class

Whether we are talking about equities, bonds, or commodities – every asset class requires tailor-made methods and models in order to seize opportunities and avoid risks.


The most important approaches of Erste Asset Management:

Investment process



Bottom-up – qualitative
  • Focus: individual securities
  • The title selection influences the portfolio composition
  • East European equities


  • Focus: economic research
  • The research influences the portfolio composition on country and sector level
  • Mixed funds

    Fundamental – quantitative

  • Focus: key ratios of the respective asset class
  • The research of asset classes on the basis of fundamental ratios in a historical context influences the portfolio composition
  • Global equity funds with a focus on country or sector allocation

    Technical models

  • Focus: model for identifying short-, medium-, or long-term trends
  • The output of these models results in buying or selling signals
  • Used as indicator for buying and selling signals


    Here you can download the list of countries where the target funds for the fund of funds may have their headquarters:

    Best execution for best quality

    Erste Asset Management complies with the specifications of Best Execution as laid down by the Markets in Financial Instruments Directive (MiFID). With our best execution approach we aim to achieve an optimum outcome for our clients when executing their orders. Best execution is an integral part of our quality standard:

    Three quality standards of Erste Asset Management:

    1. In-house trading desk, located in the Investment Department
    2. Fund managers of Erste Asset Management execute transactions directly
    3. Only selected and accredited traders are permitted to execute transactions

    Custodian and depositary for investment funds managed by Erste Asset Management GmbH is Erste Group Bank AG , Am Belvedere 1, A-1100 Vienna.
    The custodian or depositary uses sub-custodians. The list of sub-custodians can be found here:

    No conflicts of interest

    Erste Asset Management GmbH and its Austrian subsidiaries (in each case, an Austrian asset management company holding a licence for the management of investment funds in accordance with the Austrian Investment Fund Act), collectively referred to as Erste AM, are obliged to act in the best interest of their investment funds and their clients (shareholders). The area of “conflicts of interest” is therefore of significant importance to Erste AM.

    You are interested in our strategies for all asset classes?

    We offer our clients specialised expertise in a range of asset classes as well as solutions for strategic asset allocation that also fulfil individual criteria.

    Strong through cooperation

    Erste Asset Management focuses on its core competencies of ESG, global emerging markets, and fixed income, as well as on specific satellite strategies. For other niche and special strategies we rely additionally on a team of strong, internationally renowned partners of cooperation who provide our clients with their know-how in investment solutions. For example, for investments in Japanese equities or special high-yield segments we like to resort to the comprehensive expertise of specialised external asset managers and partners. We have been working very closely over many years with Daiwa Asset Management, Gave Kal, and Invesco.

    Daiwa Asset Management – the Erste Asset Management partner for Japanese equities

    Daiwa Asset Management Co. Ltd. is the asset management subsidiary of Daiwa Securities Group, one of Japan’s largest financial service providers. Managing assets worth USD 129.2bn (as of 31.03.2017), the 1959-founded company ranks second in terms of asset under management.

    At the moment Daiwa Asset Management employs more than 675 people (as of 01.04.2017). In addition to its own Tokyo-based Research department, Daiwa also has a global Research network in place. Daiwa is particularly successful in managing Asian equity funds, but manages a total of more than 600 funds across different asset classes and looks back on an extraordinary success story, especially in the management of Asian equity funds.

    GaveKal – the Erste Asset Management partner for Research

    GaveKal is one of the leading independent providers of global investment Research. It was founded in 2001 by Charles Gave, Anatole Kaletsky, and Louis-Vincent Gave. As investment advisor Gavekal is in charge of funds that manage a total of more than USD 1.7bn worth of assets. With five partners and 65 employees, the company is based in Hong Kong and has offices in the USA, Europe, and China. (All data as of 25 July 2017). 

    On the basis of its research, Gavekal offers data services and asset management. The company passes on its idea and concepts in seminars and publications.

    Invesco – the Erste Asset Management partner for quantitative equity strategies

    With assets under management of more than USD 859bn worldwide, more than 740 investment experts, and an operating network spanning more than 20 countries, Invesco is one of the biggest independent asset management companies worldwide. The company is based in Atlanta, USA. Invesco is listed at the New York Stock Exchange and is in the S&P 500 index. (All Invesco data as of 31 May 2017)

    The teams pursue clearly defined investment philosophies and are subject to the consistent management of risk and quality. Invesco’s broad range of products covers all important equity and bond markets as well as alternative asset classes both on a regional and on a global scale.

    Prudential – the Erste Asset Management partner for US high-yield bonds

    With about 48,500 employees and assets under management of more than USD 1.07 trillion (as of March 2017), Prudential Financial, Inc. is one of the biggest financial service companies worldwide. The company, based in Newark, New Jersey, has a history of more than 135 years and advises clients with asset management and insurance services in Europe, Asia, Latin America, and the USA.

    Risk management

    Crucial areas of competence in daily business

    For Erste Asset Management successful risk management is an important core competence, as it has a strong bearing on our daily business. While we focus on financial risk, we also include operating and legal risks.

    1. Financial risk: our focus is on the detailed management of risks on the capital market. Among them are market risks such as volatility as well as default and liquidity risks.
    2. Operational risk: the operational risk can be influenced by internal factors such as employees, structures, processes, and systems as well as by external events.
    3. Legal risk: changes in the regulatory framework and statutory requirements set the operating frame for asset managers

    The process – this is how risk management works

    Only if you recognise risks at an early stage can you counter them effectively. We establish a risk profile for every single fund and check every security within the fund for various risks on a daily basis, resorting to state-of-the-art software. Then our team of experts checks and assesses the results and, if necessary, takes further action. If the risk exceeds pre-defined thresholds, the experts will immediately inform management as well as all departments affected. This way we can take steps to limit potentially negative consequences within 24 hours.

    The process chain:

    • Risk identification
    • Risk assessment
    • Risk management
    • Risk monitoring
    • Communication (reporting)

    Everything under control – safety first

    In order to ensure a high level of quality for our risk management, both internal and external parties routinely audit our processes and software systems. The internal audit is executed by our Auditing and Compliance departments, while the auditor Ernst & Young handles the external audit.

    Thus our risk management meets stringent criteria: daily risk assessment, comprehensive reporting, and external and internal auditing of our own risk management system ensure the safety of the capital entrusted to us.

    You have questions?

    We provide our equity investment strategies via the institutional investment classes of our funds or as individual portfolio solutions.
    The Institutional Sales team will gladly advise you.