ERSTE SECURITY INVEST
Stability requires strength
Defense spending is increasingly seen as essential for securing peace and civil society. ERSTE SECURITY INVEST is an actively managed global equity fund that invests in companies that make a significant contribution to security-related issues. The portfolio is actively managed and contains around 40 stocks. Geopolitical tensions are leading countries to spend more money on defense. The fund has a broad focus. The stocks cover the defense industry, armaments, and cyber security. Please note that investments in securities involve opportunities and risks.
Arms and sustainability
The fund is a so-called Article 6 fund under the EU Disclosure Regulation and is not part of our sustainable product line. However, the Erste AM minimum standards also apply in this case. This includes the exclusion of companies that manufacture outlawed weapons.
The 3 key areas at a glance
Defense
- Strong political will on the part of countries to secure their defense capabilities.
- Defense has become a high-priority investment.
- Banned weapons are excluded from the fund.
Defense suppliers
- Higher investment and capacity expansion will help companies along the entire supply chain.
- Also includes military vehicles and ammunition.
Cyber security
- Threats are no longer just physical in nature. The importance of cyber security has increased in recent years.
- Government and private actors can cause damage if no security measures are taken.
Advantages & risks
Opportunity for value appreciation
The investment strategy ensures a balance between risk and return.
Title selection
Titles are actively selected based on fundamental criteria.
Broad diversification
You invest in a wide range of different defense and security companies.
Price fluctuations
The price of the fund may fluctuate significantly due to various influencing factors.
Exchange rate fluctuations
Due to investments in foreign currencies, the fund value may be affected by exchange rate fluctuations.
Possible capital loss
Capital loss is a possible consequence of investing in the stock market.
There are advantages and risks when investing in funds.
Company examples
Here you will find examples of stocks in the portfolio. The companies listed have been selected as examples and do not constitute investment recommendations. There is no guarantee that the securities will remain in the portfolio permanently. Please note that investing in securities involves risks as well as the opportunities described.
Rheinmetall
The company's products include parts for the Leopard tank series, anti-aircraft vehicles, artillery, and drones. Rheinmetall is one of the main suppliers to the German army.
Rheinmetall is one of the largest manufacturers of vehicles, weapon systems, and ammunition. The company has over 31,000 employees worldwide. The Electronic Solutions division produces solutions for the digitization of armed forces, infantry equipment, air defense, and simulation.
The Power Systems division focuses on the following areas:
- Air and exhaust gas management for combustion engines
- Sophisticated plain bearings for vehicles
- Aluminum castings
- Solutions for e-mobility
- Hydrogen technology
Palo Alto Networks
Palo Alto Networks is a leading global cybersecurity company headquartered in California. The company works for over 60,000 organizations in more than 150 countries.
The company offers many security solutions from a single source. This reduces the risk of security gaps. Customers have a central point of contact for all security issues.
Artificial intelligence (AI) and cloud services are changing the nature of threats. Attackers use AI to target vulnerabilities. They are becoming increasingly sophisticated. That is why more resources are needed to ensure security.
Risknotes for the fund
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.
Contact
Do you have questions or would like to get more information?
Your advisor at Erste Bank or Sparkasse is happy to help you.