Investment funds offer easy access to the financial markets. As provision for retirement, as investment in bond markets with higher yields, or as riskier investment in equity markets – funds are an economical and efficient way of implementing your investment of choice.
A fund consists of a portfolio of selected securities (e.g. bonds issued by European companies) that is managed by experts – the fund managers. As required by the Austrian Investment Fund Act, this portfolio is broadly diversified. That means that it invest in numerous companies and/or countries, for example. For every fund, a so-called net asset value is established frequently (at least daily). This value is based on the value of the fund’s assets. The number of shares issued by the fund is not limited, which is also why the term “open-ended investment funds” is in use.
Basic principles of investment funds according to the Austrian Investment Fund Act:
- The funds are so-called “open-ended funds”, which mean they are open to an unlimited number of investors, and new shares can be issued at any point in time
- Management is handled by a specialised institution (i.e. an asset management company)
- The funds are managed and the securities are selected by experts (i.e. fund managers)
- Broad risk diversification e.g. in securities of different issuers, countries, and categories
- Permanent (most often, daily) establishment of the net asset value
- Assets under management are split into fund shares of equal size
- Strict control of the fund management team by independent auditors
- The shareholder of the fund is a pro rata co-owner of the assets under management; the fund shares represent special assets (separation and recovery of assets in the event of the bankruptcy of your main bank or the bank assigned with the custodianship of the securities (i.e. the depositary bank))
- Utmost transparency for the investor (annual and semi-annual report, fund terms and
Disclaimer
This document is an advertisement. Please refer to the prospectus of the UCITS or to the Information for Investors pursuant to Art 21 AIFMG of the alternative investment fund and the Key Information Document before making any final investment decisions. Unless indicated otherwise, source: Erste Asset Management GmbH. 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 Art 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 Art 21 AIFMG, and the Key Information Document can be viewed in their latest versions at the website 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 website 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 Art 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.