Investor rights

Summary of investor rights

Investor rights pertain to rights that are directly enforceable by the investor in the sense of any claims for damages against the Management Company, the depositary bank, or sub-depositaries due to culpable violations of the obligations that apply to each of these entities.

The obligations of the Management Company towards the investors are not affected by the delegation of tasks or by subcontracting/subdelegation to third parties. The Management Company is liable for the conduct of these third parties in the same way it is liable for its own conduct.

The liability of the depositary is not affected by the delegation of tasks to a sub-depositary unless a legally permissible release of liability is in place.

 

General information on the relationship between Unit-holders and the Fund

1. Contractual relationship (investment contract between Unit-holder and Management Company)

As special assets, the fund's assets are strictly separated from those of the Management Company and are thus protected from all claims against the latter.

According to the prevailing interpretation of Austrian law, the investment agreement concluded between the Unit-holders and the Management Company qualifies as an agency agreement pursuant to §§ 1002 ff Austrian Civil Code (Allgemeines Bürgerliches Gesetzbuch; ABGB). It obligates the Management Company to manage the fund assets jointly owned by the Unit-holders and to perform the legal acts and legal transactions required to do so. In this, the Management Company must always act in the interests of the Unit-holders.

The Management Company is not required to achieve success (such as a specific performance target for the fund assets), but is required to manage the fund assets with the due diligence of a prudent manager. The Management Company acts in its own name and for the account of the Unit-holders. In general, only the Management Company may dispose of the fund assets. When doing so, it must comply with the investment limits and requirements specified by law and by the Fund Rules.

In addition, the Management Company is obligated to grant the Unit-holders the status of joint owners upon payment of the issue price price plus a front-end surcharge, if applicable; this task has been delegated to the depositary bank. In return, the Unit-holders are obligated to pay the issue price plus a front-end surcharge and the administration fee to the Management Company.

2. Court of jurisdiction/applicable law

The legal relationship between the Management Company and the investor is subject to Austrian law, expressly precluding the choice-of-law rules defined therein. The place of performance is the registered office of the Management Company. The court of jurisdiction is the competent court for the registered office of the Management Company. This does not supersede the competent court of jurisdiction for consumers. If the investor does not have a domicile or habitual residence in Austria (general place of jurisdiction), the non exclusive place of jurisdiction shall be the registered office of the Management Company.

Consumers are natural persons for whom the acquisition of units of the Fund is not part of the operation of their business, i.e. who are acting for private purposes (cf. § 1 Consumer Protection Act (KSchG)).

3. Right of joint ownership

The Unit-holders are joint owners of the assets of the Fund in accordance with the number of units they own. Therefore, every fund unit represents a right in rem, in this case the right of joint ownership, to the fund assets. Fund units are generally issued in an unlimited number.

4. Right to redeem units

In general, the Unit-holders can demand the redemption of their units at any time by submitting a redemption order to the depositary bank; the depositary bank must accept these units at the prevailing redemption price, less a redemption fee, if applicable.

5. Right to information

The Unit-holders are entitled to receive information about the investment limits of the Fund, the risk management methods, and the latest developments regarding risks and returns from the Management Company upon request.

6. Claims for damages

Along with the direct entitlements and rights of investors based on the investment agreement and their status as joint owners, investors have secondary contractual rights (such as claims for damages) vis-à-vis the Management Company in the event of the culpable violation of the obligations that apply to the Management Company. These rights are based on general civil law.

7. Enforcement of rights

Investor complaints related to the provisions of the InvFG 2011 can be filed with the Joint Conciliation Board of the Austrian Banking Industry (Austrian member of FIN-NET).

In order to enforce their rights, investors can take legal action in the competent courts.

Legal disputes connected with investments in this Fund are subject to Austrian law, expressly precluding the choice-of-law rules defined therein.

The recognition and enforcement of judgements within the territory of the Republic of Austria depends on what country the judgement was rendered in. 

Council Regulation (EC) No 1215/2012 of 12 December 2012 on jurisdiction and the recognition and enforcement of judgements in civil and commercial matters (the Brussels Regime, in the currently amended version) is applicable in Austria. Judgements rendered by competent courts pursuant to the Brussels Regime are recognised and enforced in Austria.

In addition, Regulation (EC) No 805/2004 of the European Parliament and the Council of 21 April 2004 creating a European Enforcement Order for uncontested claims (as amended) applies in Austria. Claims deemed to be enforceable in the state of origin pursuant to this regulation are enforced in Austria without further recognition or order of enforcement.

There are also other European regulations that form the basis for the recognition and enforcement of judgements in Austria.

In all other cases, the recognition and enforcement of foreign judgements in Austria must be determined in legal proceedings under national law.

 

Erste Asset Management GmbH, August 2021

Disclaimer

This document is an advertisement. 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 § 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 § 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 § 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 public sale of shares in the specified fund in Germany was registered with the Federal Financial Supervisory Authority, Bonn, pursuant to the German Kapitalanlagegesetzbuch (KAGB). The payment and information office in Germany is HSBC Trinkaus & Burkhardt AG, Königsallee 21–23, D-40212 Düsseldorf. Orders for the return of shares in the fund(s) can be submitted to the German payment and information office, and share redemption proceeds, any dividends or other payments can be paid out to Shareholders (in cash in the local currency) by the German payment office upon request. In addition, all information required by investors before and after the conclusion of an investment agreement – i.e. the fund terms and conditions, the fund prospectus, the Information for Investors pursuant to § 21 AIFMG, and the Key Information Document and the annual and semi-annual reports – is available free of charge at the German payment and information office. 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.