Responsible Investment.

Investments for a better world

Responsible investments have a long tradition at Erste Asset Management: back in 2001 we launched our first responsibility fund, i.e. ERSTE WWF STOCK ENVIRONMENT (former ESPA STOCK UMWELT). Nowadays we manage assets worth about EUR 5.22bn in this segment – in a vast array of strategies and with excellent track record (12/31/2018). Our responsible investment team addresses current topics together with leading partners and drives the development in the field of responsible investment in a targeted fashion. We as company assume responsibility beyond our responsible range of funds: for example, we exclude companies that do business in banned weapons from all our investment strategies.

Our responsibility

Zeitstrahl Responsible Fonds

Our approach

The principle of responsibility is deeply rooted within our investment process. We bundle the most important responsible investment styles to one unique proprietary approach, with our in-house-developed Erste AM-ESG rating at its core. We work closely with leading rating agencies and thus offer strategies that adapt to the individual needs of our clients.

Principle of responsibility

The EAM-ESG-Rating

At the core of our responsibility approach is the Erste AM-ESG rating. It consists of all investable companies and countries. By combining our internal research with the expertise of external partners we compile an individual ranking for Environmental, Social, and Corporate Governance criteria (ESG). The weighted integration of the three categories generates the final Erste AM-ESG rating.

Exclusion Criteria for the Responsible Funds

       

Minimum Requirements

(affects all mutual funds of Erste AM)

ERSTE RESPONSIBLE RESERVE

ERSTE RESPONSIBLE BOND

ERSTE RESPONSIBLE BOND EURO CORPORATE

ERSTE RESPONSIBLE BOND GLOBAL IMPACT

ERSTE RESPONSIBLE STOCK AMERICA

ERSTE RESPONSIBLE STOCK EUROPE

ERSTE RESPONSIBLE STOCK GLOBAL

ERSTE RESPONSIBLE STOCK DIVIDEND

ERSTE RESPONSIBLE BOND EMERGING CORPORATE

ERSTE WWF STOCK ENVIRONMENT
   

NUCLEAR ENERGY

Producers and feeding into the grid

 

zero tolerance

max. 5% of sales

zero tolerance

Producers of nuclear reactor core components

 

 

max. 5% of sales

zero tolerance

zero tolerance

Distributors of nuclear reactor core components

 

 

max. 5% of sales

zero tolerance

max. 5% of sales

  BANKS AND FINANCIAL SERVICES

 

Systematic violations of accepted business practices

 

zero tolerance

 

zero tolerance

  FRAUD AND CORRUPTION

 

Disregard of legal regulations

 

zero tolerance

zero tolerance

zero tolerance

 

EMBRYONIC RESEARCH

Specialized companies

 

zero tolerance

zero tolerance

zero tolerance

 

GAMBLING

Operators and specialized manufacturers

 

max. 5% of sales

max. 5% of sales

zero tolerance

 

GMO

Producers of manipulated seeds

 

zero tolerance

zero tolerance

zero tolerance

Use of manipulated seed

 

 

zero tolerance

zero tolerance

 

CHILD LABOUR

Conscious use of child labor

 

zero tolerance

zero tolerance

zero tolerance

 

COAL MINING

Coal mining and liquefaction to fuels

max. 30% of sales

max. 5% of sales

max. 5% of sales

zero tolerance

Share of energy production from coal

 

max. 20% of production

max. 20% of production

zero tolerance

 

PORNOGRAPHY

Producers of pornography

 

zero tolerance

zero tolerance

zero tolerance

Merchant of pronography

 

max. 10% of sales

max. 10% of sales

zero tolerance

  PREGNANCY TERMINATION Commercial abortion clinics and pharmaceuticals   zero tolerance zero tolerance zero tolerance
 

ARMS/WEAPONS

Producers and distributors of weapons systems, outlaw weapons, ABC weapons

exclusion

Outlaw weapons

zero tolerance

zero tolerance

zero tolerance

Producers of other armaments

 

max. 5% of sales

max. 5% of sales

zero tolerance

 

TOBACCO

Producers of end products

 

zero tolerance

max. 5% of sales

zero tolerance

 

ANIMAL TESTING

Unless required by law

 

zero tolerance

 

zero tolerance

 

UNCONVENTIONAL OIL/GAS

High proportion of fracking, tar and oil sands reserves

 

max. 20%-share of unconventional reserves

 

zero tolerance

 

Violation of HUMAN RIGHTS

Violation of internationally recognized principles

 

zero tolerance

zero tolerance

zero tolerance

 

Violation of LABOUR RIGHTS

Massive violation of the ILO

 

zero tolerance

zero tolerance

zero tolerance

C

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U

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T

R

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  LABOUR RIGHTS

 

Countries with particularly low standards

 

zero tolerance*

no relevance

no relevance

 

NUCLEAR ENERGY

Share of primary energy production
(3-year average)

 

from 40 % *

no relevance

no relevance

 

AUTHORITARIAN REGIME

Classification by. „Freedom House“ not freei

 

zero tolerance*

no relevance

no relevance

 

CHILD LABOUR

Countries with widespread use of child labor

 

zero tolerance*

no relevance

no relevance

  CLIMATE PROTECTION

 

Non-ratification of the kyoto protocol

 

zero tolerance*

no relevance

no relevance

Non-ratification of the paris convention

 

HUMAN RIGHTS

Countries with massive restrictions

 

zero tolerance*

no relevance

no relevance

 

MILITARY EXPENSES

Military expenditure/BIP

 

from 3% *

no relevance

no relevance

 

DEATH PENALTY

Death penalty not completely abolished

 

zero tolerance*

no relevance

no relevance

 

FREEDOM OF ASSOCIATION

Countries with massive restrictions

 

zero tolerance*

no relevance

no relevance

          *Only relevant for investments in government bonds    

D

I

V

  Since 2013, ERSTE ASSET MANAGEMENT pledges to refrain from investing in derivatives on food in all of its managed funds and customer portfolios:

Please note the warnings at the bottom of the page.

Our strengths

  • Years of experience and mature selection and investment process
  • Numerous international awards
  • Quality verified by external certificates

"Responsible investment will continue to gain importance in the future. We are already leaving a mark today.”

Gerold Permoser, Chief Investment Officer (CIO) and Chief Sustainable Investment Officer (CSIO)

 

ERSTE RESPONSIBLE RETURN - The ESG Letter

Our responsibility magazine ERSTE RESPONSIBLE RETURN - The ESG Letter discusses topics that are both controversial and up-to-date and informs about our responsible funds.

 

Our products

Erste Asset Management offers responsible equity and bond funds and is pioneer in this category in Austria. Our solutions are available both for individual asset classes and for multi-asset client mandates. We develop individual responsibility filters in order to fulfil our clients’ requirements to the best of our abilities.

ERSTE RESPONSIBLE BOND EMERGING CORPORATE

Emerging markets such as China, India and Brazil are beginning to focus increasingly on sustainability for ensuring future growth of their national economies. Consequently, ESG criteria are gaining importance for companies in these countries. The ERSTE RESPONSIBLE BOND EMERGING CORPORATE invests primarily in corporate bonds of companies in emerging markets and uses our comprehensive sustainability approach.

Please see the legal risk notes at the end of this page.

"Environmental risks and risks of corruption can be reduced dramatically by responsibility criteria in particular for emerging markets funds.”

Peter Varga, Fund manager

ERSTE RESPONSIBLE STOCK GLOBAL

The ERSTE RESPONSIBLE STOCK GLOBAL fund is an actively managed equity fund that invests globally according to ethically sustainable criteria. Our integrative management approach encompasses all major methods of sustainability analysis. Currency risks are not hedged.

Please see the legal risk notes at the end of this page.

ERSTE RESPONSIBLE BALANCED

The ERSTE RESPONSIBLE BALANCED is an active return fund and invests in sub-funds managed according to ethically sustainable criteria. In order to optimise risk and return, the asset allocation between equities (0%-30%), bonds (70%-100%) and money market is defined on a monthly basis in the tactical asset allocation. 

Please see the legal risk notes at the end of this page.

ERSTE RESPONSIBLE STOCK DIVIDEND

ERSTE RESPONSIBLE STOCK DIVIDEND is a sustainability equity fund with a focus on dividend that invests worldwide. The fund focuses on large-cap to mid-cap shares of companies, with attractive dividend yields and comparably low price fluctuations in the past.

Please see the legal risk notes at the end of this page.

ERSTE RESPONSIBLE STOCK EUROPE

The ERSTE RESPONSIBLE STOCK EUROPE fund is an actively managed equity fund that invests according to ethically sustainable criteria across Europe. Our integrative management approach encompasses all major methods of sustainability analysis. Currency risk is not hedged.

Please see the legal risk notes at the end of this page.

ERSTE RESPONSIBLE RESERVE

The ERSTE RESPONSIBLE RESERVE fund is a near-money-market fund with a responsible investment strategy that invests primarily in short-dated bonds, money market instruments, Pfandbriefe from financial institutions, governments, supranational issuers, and companies; their credit ratings range from AAA to BBB. The fund invests solely in issuers that facilitate socially and environmentally friendly production processes.

Please see the legal risk notes at the end of this page.

ERSTE RESPONSIBLE BOND GLOBAL IMPACT

ERSTE RESPONSIBLE BOND GLOBAL IMPACT is is a global bond fund that invests in green bonds, climate awareness bonds and certified social bonds. Only those securities are purchased that are classified as sustainable on the basis of a pre-defined selection process by the management company.

Please see the legal risk notes at the end of this page.

ERSTE RESPONSIBLE BOND EURO CORPORATE

The ERSTE RESPONSIBLE BOND EURO-CORPORATE fund invests primarily in euro-denominated corporate bonds of European issuers with excellent to average credit ratings. Its investment universe is based on ethical-sustainable factors.

Please see the legal risk notes at the end of this page.

ERSTE RESPONSIBLE BOND

The ERSTE RESPONSIBLE BOND fund is a euro bond fund whose investment universe is defined according to ethically sustainable criteria. The fund invests in government bonds, public sector/supranational issuers, corporate bonds, in bonds of financial service providers, in Pfandbriefe and in special sustainable bond issues.

Please see the legal risk notes at the end of this page.

European Transparency Logo for Sustainable Investment Funds (EUROSIF)

Eurosif

The European Transparency Logo for Sustainable Investment Funds is awarded by the European Sustainable Investment Forum (EUROSIF). The awardees, among them ERSTE ASSET MANAGEMENT, undertake to follow the European transparency guidelines for sustainable investment funds. They have to provide the public with sufficient and specific information on their investment criteria and their research.

Contact us

You have questions? We are looking forward to hearing from you.

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 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.

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.