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Erste Asset Management currently manages assets worth EUR 57.2bn, EUR 29.3bn thereof managed for institutional investors, with a rising tendency (as of 31 December 2016). We offer our institutional clients an investment approach that is based on the four pillars of team approach, flexibility, consistency in an optimal fashion and tracebility. Our fund managers work closely with our in-house Research department. Our expert invest according to clearly defined processes, which are based on quality-assuring principles:

Team approach

Flexibility

Consistency

Traceability

Intensive and permanent exchange between fund managers and analysts

 

Good and direct communication between team members and the management of the Investment Department facilitates quick reaction to the market

The investment approaches are clearly defined, followed with a high degree of discipline, and continuously being developed

The decisions of our fund managers are transparent and can be traced at any time. This is the only way that processes can be evaluated and improved comprehensively

 

Whether we are talking about equities, bonds, or commodities – every asset class requires tailor-made methods and models in order to seize opportunities and avoid risks.

The most important approaches of Erste Asset Management:

Investment process

Description

Example

Bottom-up – qualitative

  • Focus: individual securities
  • The title selection influences the portfolio composition

East European equities

Top-down

  • Focus: economic research
  • The research influences the portfolio composition on country and sector level

Mixed funds

Fundamental – quantitative

  • Focus: key ratios of the respective asset class
  • The research of asset classes on the basis of fundamental ratios in a historical context influences the portfolio composition

Global equity funds with a focus on country or sector allocation

Technical models

  • Focus: model for identifying short-, medium-, or long-term trends
  • The output of these models results in buying or selling signals

Used as indicator for buying and selling signals

 

Here you can download the list of countries where the target funds for the fund of funds may have their headquarters:

Erste Asset Management complies with the specifications of Best Execution as laid down by the Markets in Financial Instruments Directive (MiFID). With our best execution approach we aim to achieve an optimum outcome for our clients when executing their orders. Best execution is an integral part of our quality standard:

Three quality standards of Erste Asset Management:

  1. In-house trading desk, located in the Investment Department
  2. Fund managers of Erste Asset Management execute transactions directly
  3. Only selected and accredited traders are permitted to execute transactions

Custodian and depositary for investment funds managed by Erste Asset Management GmbH and ERSTE-SPARINVEST Kapitalanlagegesellschaft mbH 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:

Erste Asset Management GmbH and its Austrian subsidiaries (in each case, an Austrian asset management company holding a licence for the management of investment funds in accordance with the Austrian Investment Fund Act) and ERSTE-SPARINVEST Kapitalanlagegesellschaft m.b.H. (jointly referred to as “EAM") are obliged to act in the best interest of their investment funds and their clients (shareholders). The area of “conflicts of interest” is therefore of significant importance to EAM.

You are interested in our strategies for all asset classes?

We offer our clients specialised expertise in a range of asset classes as well as solutions for strategic asset allocation that also fulfil individual criteria.

Erste Asset Management focuses on its core competencies of ESG, global emerging markets, and fixed income, as well as on specific satellite strategies. For other niche and special strategies we rely additionally on a team of strong, internationally renowned partners of cooperation who provide our clients with their know-how in investment solutions. For example, for investments in Japanese equities or special high-yield segments we like to resort to the comprehensive expertise of specialised external asset managers and partners. We have been working very closely over many years with Daiwa Asset Management, Gave Kal, and Invesco.

Daiwa Asset Management – our partner for Japanese equities

• Founded in 1959 as subsidiary of Daiwa Securities Group, one of the biggest financial service provider in Japan
• Daiwa is particularly successful in managing Asian equity funds, but manages a total of more than 460 funds across different asset classes
• With assets under management of USD 118bn the company ranks second in terms of this key figure
• In addition Daiwa has an in-house research department and a global research network (as of 31 March 2016)

GaveKal – our partner in research

• Founded in 2001 by Charles Gave, Anatole Kaletsky, and Louis-Vincent Gave
• GaveKal is one of the world’s leading, independent providers of global investment research
• Along with the data service, GaveKal manages assets of more than USD 1.5bn, which are invested in numerous funds
• The eight partners and 45 employees of the company are located in Hong Kong, the USA, Europe, and China (all data as of 30 June 2015)

Invesco – our partner for quantitative equity strategies

• Founded 1935 in the United States
• Invesco is one of the largest independent investment companies worldwide
• Its range of products covers all important equity and fixed income markets as well as alternative asset classes on a regional and global level
• The teams pursue a clearly defined investment philosophy and are subject to consistent risk and quality management
• Invesco manages a total of more than USD 784.5bn worth of assets and has an extensive network of 750 investment experts across more than 20 countries at its disposal (as of 30 June 2016)

Prudential – our partner for US high-yield bonds

• Founded 1875 in the United States
• Prudential is one of the world’s biggest financial service providers
• The company provides asset management and insurance services in Europe, Asia, Latin America, and the USA
• Prudential has assets under management of USD 1.218 trillion
• Prudential has a headcount of 49,000 (as of March 2016)

For Erste Asset Management successful risk management is an important core competence, as it has a strong bearing on our daily business. While we focus on financial risk, we also include operating and legal risks.

  1. Financial risk: our focus is on the detailed management of risks on the capital market. Among them are market risks such as volatility as well as default and liquidity risks.
  2. Operational risk: the operational risk can be influenced by internal factors such as employees, structures, processes, and systems as well as by external events.
  3. Legal risk: changes in the regulatory framework and statutory requirements set the operating frame for asset managers

Only if you recognise risks at an early stage can you counter them effectively. We establish a risk profile for every single fund and check every security within the fund for various risks on a daily basis, resorting to state-of-the-art software. Then our team of experts checks and assesses the results and, if necessary, takes further action. If the risk exceeds pre-defined thresholds, the experts will immediately inform management as well as all departments affected. This way we can take steps to limit potentially negative consequences within 24 hours.

The process chain:

  • Risk identification
  • Risk assessment
  • Risk management
  • Risk monitoring
  • Communication (reporting)

In order to ensure a high level of quality for our risk management, both internal and external parties routinely audit our processes and software systems. The internal audit is executed by our Auditing and Compliance departments, while the auditor Ernst & Young handles the external audit.

Thus our risk management meets stringent criteria: daily risk assessment, comprehensive reporting, and external and internal auditing of our own risk management system ensure the safety of the capital entrusted to us.

You have questions?

We provide our equity investment strategies via the institutional investment classes of our funds or as individual portfolio solutions.
The Institutional Sales team will gladly advise you.