• Erste Asset Management (Erste AM) increased assets under management in Austria in 2021 by 16.6% to EUR 47.7bn and expanded its market leadership slightly (market share of 21.8%)
  • The volume held in sustainable funds exceeded EUR 15bn for the first time at the end of 2021; sustainable funds are the fastest growing segment
  • The Erste AM Group had assets under management of EUR 76.8bn as of 31 December 2022, up 12.7% on the previous year’s figure

Erste Asset Management, subsidiary of Erste Group Bank AG, was yet again ranked first among the Austrian investment companies last year. Assets under management in Austria had increased by 16.6% y/y to EUR 47.7bn as of 31 December 2021 (2020: EUR 40.9bn). In terms of investment categories, equity funds accounted for 31.5%, bond and money market funds for 33.4%, and mixed and other funds for 35.1%. Erste Asset Management expanded its market leadership slightly to 21.8% (source: VÖIG statistics) and thus recorded stronger growth than the overall market (EUR 218.8bn, +14%: source: VÖIG).

Sustainable funds exceeding EUR 15.5bn

Among the driving forces of our fund sales was yet again the category of funds that are managed on the basis of environmental, social, and governance criteria (ESG). Erste AM is market leader and pioneer in the area of sustainability in Austria, offering 50 sustainable mutual funds and several special funds. The company issued its first environmental equity fund as early as 2001, which has been managed in collaboration with WWF Austria since 2006. In 2009 Erste AM signed the UN Principles for Responsible Investment as the first Austrian investment company.

Erste AM’s assets under management increased by 12.7%

2021 was overall a very good year for Erste AM. Erste AM coordinates, and is responsible for, the asset management activities (investment funds and portfolio solutions) within Erste Group Bank AG. With offices in Austria, Germany, Croatia, Romania, Slovakia, the Czech Republic, and Hungary, it manages assets of EUR 76.8bn (as of 31 December 2021). The performance in Slovakia, Austria, and the Czech Republic, where Erste Asset Management recorded a significant increase, was particularly pleasing.

“In the second year of the COVID pandemic, the development of the global financial markets was similar to the one we had seen in the previous year: rising share and commodity prices dominated the markets. For example, the MSCI World index, which contains 23 countries, gained more than EUR 10,000bn or 20.1% in market capitalisation due to the indicators suggesting a recovery from the slump induced by COVID and to the ongoing stimulus measures from the central banks. Our fund managers were able to seize the opportunity provided by this environment and achieved excellent returns for our clients,” as Heinz Bednar, CEO of Erste Asset Management, sums it up.

Outlook 2022: inflation protection moves equities to centre stage yet again

The economic outlook for 2022 remains moderately positive. The recovery continues, albeit at a lower momentum. Also, it differs regionally. Inflation has increased more significantly than anticipated. We expect several central banks to react to this development with monetary measures. The consensus expects a number of interest rate increases for the USA until the end of the year. Even though the central banks are slowly exiting the very expansive monetary policy and yields have already increased a bit, the interest rate and yield level will remain low.

This environment means for investors that the search for yield will take precedence again. Investors wishing to protect their monetary assets from this rise in inflation may want to diversify out of money market assets to risky asset classes such as equities or corporate bonds.

Rising trend of sustainable funds

In the past two years, Erste AM has successfully placed two sustainable impact mutual funds with investors. The trend towards sustainability is becoming more pronounced, with asset inflows increasing at rapid speed. The segment of sustainable investment products by Erste AM offers investors a broad spectrum: in addition to environmental and social themes, corporate governance is also becoming more relevant. We are planning to expand our range of currently more than 50 ESG funds in 2022 and to integrate ESG aspects more substantially in existing funds.

The sustainable engagement of Erste AM is credible and consistent: since 2012, the investment company has refrained from investments in banned weapons, in 2013 the company ruled out food speculation from all mutual funds, and since 2016 investments in coal mining have been excluded. In June 2021, the range of applicability of the company’s carbon strategy was expanded again when Erste AM banned electricity generated by coal. Since fiscal 2019 Erste AM has offset its CO2 emissions and has thus become climate-neutral as a company.

“The pressure on companies to take into account sustainable criteria in their strategy increases every year. We have proven to our investors that we successfully live this topic and will continue to take ESG into account in our investment decisions,” as Bednar points out. “If, for example, you are looking for a sustainable, actively managed investment product, the widely diversified equity fund ERSTE RESPONSIBLE STOCK GLOBAL that invests globally in carefully selected companies may be of interest to you. Impact funds such as ERSTE FAIR INVEST are also worth looking into on account of the strategy they follow.”

For further information, please visit https://www.erste-am.at/en

Heinz Bednar

Heinz Bednar, CEO Erste AM

Download

For enquiries, please contact:
Communications & Digital Marketing

Paul Severin
Tel. +43 (0)50 100 19982
E-Mail: paul.severin@erste-am.com



Erste Asset Management GmbH

Am Belvedere 1, A-1100 Wien
www.erste-am.com
Sitz Wien, FN 102018b,
Handelsgericht Wien, DVR 0468703


 

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 Amtsblatt zur Wiener Zeitung 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 investor document/KID 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 investor 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.

This document serves as additional information for our investors and is based on the knowledge of the staff responsible for preparing it at the time of preparation. 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. Please note that investments in securities entail risks in addition to the opportunities presented here. The value of shares and their earnings can rise and fall. Changes in exchange rates can also have a positive or negative effect on the value of an investment. For this reason, you may receive less than your originally invested amount when you redeem your shares. Persons who are interested in purchasing shares in investment funds are advised to read the current fund prospectus(es) and the Information for Investors pursuant to § 21 AIFMG, especially the risk notices they contain, before making an investment decision.

Please consult the corresponding information in the fund prospectus and the Information for Investors pursuant to § 21 AIFMG for restrictions on the sale of fund shares to American citizens. Misprints and errors excepted.

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 investor 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.

Presentations:

It is expressly noted that presentations shall not be construed as providing investment advice or investment recommendations; presentations simply represent the current market opinion. The presentations are not intended as sales instruments, and shall therefore not be construed as an offer to buy or sell financial or investment instruments. The investor shall be solely responsible for any and all decisions that he makes on the basis of this presentation.