Quality and principles
Erste Asset Management currently manages assets worth EUR 82.88bn, out of which EUR 39.92bn for institutional investors (August 2024). We offer our institutional clients an investment process that is based on the four pillars: "team approach", "flexibility", "consistency", and "traceability".
In order to be able to invest our clients’ money in an optimal fashion, our fund managers cooperate closely with our in-house Research Department. Our experts invest in accordance with clearly defined processes that are based on te following quality-assuring principles:
The right strategy for every asset class
Whether equities, bonds, or alternative investments – every asset class requires tailormade methods and models in order to successfully seize opportunities and avoid risks.
The most important approaches of Erste Asset Management:
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 follows the EU Directive on markets in financial instruments (MiFID) with regard to best execution practices. Our goal in doing so is to achieve the optimum result for our clients when executing their orders. Best execution is an integral part of our quality standards.
Three quality standards of Erste Asset Management:
- In-house trading desk in the Investment Department
- Erste Asset Management fund managers directly execute transactions
- Only selected, licensed traders are authorised to execute transactions
Sub-Depositaries
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:
Indication of the investment funds managed by Erste Asset Management GmbH
A complete list of the investment funds currently managed by Erste Asset Management GmbH (including investment funds under Czech law) can be found here:
Conflicts of Interest
Erste Asset Management GmbH is an Austrian investment company with a licence both to manage investment funds according to the Investmentfondsgesetz (investment fund act) and to provide investment consulting and individual portfolio management services (extended licence). Erste Asset Management GmbH and its Austrian subsidiaries (an Austrian investment company licensed to manage investment funds under the investment fund act in each case), collectively referred to as "Erste AM", shall be obliged to act in the best interest of their investment funds and their customers (shareholders). For Erste AM, the issue of "conflicts of interest" is of great importance.
Remuneration policy
Erste Asset Management GmbH established compensation principles in order to avoid possible conflicts of interest and ensure compliance with the rules of conduct in the remuneration of relevant persons. The details of the current remuneration policy can be found here:
Risikomanagement
Important asset in the daily business
To Erste Asset Management, successful risk management is an important asset and a core competence, as it also crucially affects our daily business. In it, we focus on financial risk but also take into account operating and legal risks.
- Financial risk: our focus is on the precise management of risks on the capital market. Among them are market risks such as volatility as well as credit and liquidity risks.
- Operating risk: the operating risk can be influenced by internal factors such as employees, structures, processes, and systems as well as by external ones.
- Legal risk: changes in the regulatory framework and legal requirement set the scope of action for asset managers.
The process – this is how risk management works
In order to take effective measures against risks, you have to identify them first. We create a risk profile for every single fund and check every security in the fund for risks on a daily basis. To this end, we apply state-of-the-art software. Our risk management team then checks and evaluates the results and takes further steps, if necessary. If the risk exceeds defined boundaries, the experts will immediately inform both Management and the affected departments. This way, we can take measures to contain possible negative consequences within a turnaround time of 24 hours.
Process overview:
- Risk identification
- Risk assessment
- Risk management
- Risk controlling
- Communication (reporting)
Everything under control – safety first
In order to ensure the high quality of risk management we have our system tested regularly, both internally and externally. Internal auditing is handled by our Auditing Department, while Ernst & Young are our external auditors.
Thus, our comprehensive risk management fulfills strict standards: daily risk assessments, an extensive reporting system, and internal as well as external auditing of our risk management ensure the safety of the capital entrusted to us.
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.