Erste Asset Management

Erste Asset Management integrates sustainability in funds and on corporate level

Erste Asset Management integrates sustainability in funds and on corporate level
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  • From the end of February 2020, Erste Asset Management will be managing more than 50 funds with assets under management of EUR 13.4bn on the basis of criteria of sustainability
  • This explicitly integrates environmental, social, and governance topics (ESG) with investment decisions
  • Sustainability will become part of the corporate mission statement

Erste Asset Management expands on its pioneering role in the area of ethics and environmental issues. We issued the first sustainable mutual fund as early as in 2001, and since 2006, the fund has been co-managed by WWF. Erste Asset Management is the market leader in Austria in this field with a total of 15 sustainable mutual funds and numerous special funds with assets under management of EUR 6.6bn at this point in time. Now the company is taking the next step by making sustainable criteria an integral part of a large number of its investment decisions. This will raise the assets under management that explicitly take into account ESG criteria to EUR 13.4bn (as of 31 January 2020).

“It is our task to manage the capital we have been entrusted with to the best of our abilities. We know that by taking into account sustainable criteria, we can provide our clients with a better risk-adjusted performance in the long run. Of course, this does not change the basic structuring of the funds,” as Heinz Bednar, CEO of Erste Asset Management, points out.

Erste AM has already implemented certain minimum criteria that the individual securities of its actively managed mutual funds have to fulfil. For example, Erste AM excludes investment in companies that operate in the field of banned weapons. This also applies to investments in derivatives instruments on food and to investments in companies where coal accounts for more than 30% of total sales.

As the first investment company in Austria, Erste Asset Management also decided in 2015 to sign the Montréal Carbon Pledge. This means the company agreed to measure and publish the carbon footprint of its portfolios. In addition, Erste Asset Management operates as sustainable investor by exercising the voting rights held by its investment funds to support ESG shareholder petitions.

Sustainability factors to become part of the investment process

In addition to the fundamental criteria taken into account so far (e.g. ROE, P/E ratio etc.), our fund managers will be considering environmental, social, and governance (ESG) aspects for parts of our product range. This means that in the future these criteria will not only be relevant across a few designated, sustainable funds, but they will be part of the investment process across the majority of our mutual funds.

For our clients, nothing else will change; the underlying structuring of the various funds will of course remain the same: if you have bought a European equity fund, you will continue to hold a European equity fund; if you have bought a global bond fund, you will continue to hold a global bond fund, and so on. The main difference is that sustainability criteria will be taken into account, which in turn improves the quality of the fund. There are different ways the ESG criteria will be considered. From the end of February onwards, more than 50 funds will be managed on the basis of the integrated ESG criteria.

Sustainability will become part of the corporate mission statement

On top of more stringent criteria, Erste AM will also integrate sustainability more within the company and make it part of the corporate mission statement. In doing so, we calculate the carbon footprint of Erste Asset Management and try to establish with external partners how EAM can optimise its resource input (e.g. stationary) and support its employees in improving their behaviour in terms of environmental friendliness (e.g. transport). Also, the company has invested its equity capital sustainably since 2016.

“We are not taking this step lightly. It is important to us not to engage in greenwashing and instead to inform transparently and anticipate important developments such as the EU action plan on green finance. We want to be a significant driver for the qualitative development of the market for sustainable investments,” concludes Bednar.

 

Wichtige rechtliche Hinweise:
Prognosen sind kein zuverlässiger Indikator für künftige Entwicklungen.

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Legal disclaimer

This document is an advertisement. Unless indicated otherwise, source: Erste Asset Management GmbH. The language of communication of the sales offices is German and the languages of communication of the Management Company also include English.

The prospectus for UCITS funds (including any amendments) is prepared and published in accordance with the provisions of the InvFG 2011 as amended. 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 conjunction with the InvFG 2011.

The currently valid versions of the prospectus, the Information for Investors pursuant to § 21 AIFMG, and the key information document can be found on the website www.erste-am.com under “Mandatory publications” and can be obtained free of charge by interested investors at the offices of the Management Company and at the offices of the depositary bank. The exact date of the most recent publication of the prospectus, the languages in which the key information document is available, and any other locations where the documents can be obtained are indicated on the website www.erste-am.com. A summary of the investor rights is available in German and English on the website www.erste-am.com/investor-rights and can also be obtained from the Management Company.

The Management Company can decide to suspend the provisions it has taken for the sale of unit certificates in other countries in accordance with the regulatory requirements.

Note: You are about to purchase a product that may be difficult to understand. We recommend that you read the indicated fund documents before making an investment decision. In addition to the locations listed above, you can obtain these documents free of charge at the offices of the referring Sparkassen bank and the offices of Erste Bank der oesterreichischen Sparkassen AG. You can also access these documents electronically at www.erste-am.com.

N.B.: The performance scenarios listed in the key information document are based on a calculation method that is specified in an EU regulation. The future market development cannot be accurately predicted. The depicted performance scenarios merely present potential earnings, but are based on the earnings in the recent past. The actual earnings may be lower than indicated. Our analyses and conclusions are general in nature and do not take into account the individual characteristics of our investors in terms of earnings, taxation, experience and knowledge, investment objective, financial position, capacity for loss, and risk tolerance.

Please note: Past performance is not a reliable indicator of the future performance of a fund. Investments in securities entail risks in addition to the opportunities presented here. The value of units 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 units. Persons who are interested in purchasing units 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. If the fund currency is different than the investor’s home currency, changes in the relevant exchange rate can positively or negatively influence the value of the investment and the amount of the costs associated with the fund in the home currency.

We are not permitted to directly or indirectly offer, sell, transfer, or deliver this financial product to natural or legal persons whose place of residence or domicile is located in a country where this is legally prohibited. In this case, we may not provide any product information, either.

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

It is expressly noted that this communication does not provide any investment recommendations, but only expresses our current market assessment. Thus, this communication is not a substitute for investment advice, does not take into account the legal regulations aimed at promoting the independence of financial analyses, and is not subject to a prohibition on trading following the distribution of financial analyses.

This document does not represent a sales activity of the Management Company and therefore may not be construed as an offer for the purchase or sale of financial or investment instruments.

Erste Asset Management GmbH is affiliated with the referring Sparkassen banks and Erste Bank.

Please also read the “Information about us and our securities services” published by your bank.

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