ERSTE STOCK EUROPE EMERGING invests primarily in companies domiciled in or with business interests in Central, Southern and Eastern European countries (incl. CIS, successor states of the Soviet Union and Turkey). The fund's investment process is based on fundamental company analysis. The selection of securities is based on high-quality and high-growth companies. Hedging of foreign currency risks is generally not planned, but possible.
The fund pursues an active investment policy. The assets are selected on a discretionary basis. The fund is oriented towards a benchmark index (for licensing reasons, the specific name of the index used is given in the prospectus, item 12 or KID "Objectives and investment policy"). The composition and performance of the fund may deviate substantially to completely, positively or negatively from that of the benchmark index over the short and long term. The discretion of the management company is not limited.
Suspension of price calculation as of 24.02.2022
Due to the current political situation and the resulting uncertainties regarding the fungibility of the Moscow Stock Exchange, the price calculation and the unit certificate business have been suspended for ERSTE STOCK EUROPE EMERGING as of February 24th, 2022. The resumption of the unit certificate business will be announced separately.
For more information: Suspension of price calculation: ERSTE STOCK RUSSIA, ERSTE STOCK EUROPE EMERGING, Global Flexible Strategy Fund 2 (erste-am.at)
With the beginning of the Ukraine crisis, there were significant sanctions against Russian companies, restrictions on the tradability of Russian securities, the exclusion of some Russian banks from the international payment system SWIFT, the closure of the Moscow Stock Exchange and a drastic devaluation of the Russian ruble.
On March 9th, 2022, international index provider MSCI Inc. classified the Russian stock index MSCI Russia from Emerging Market to Standalone. As a result, all Russian stocks were removed from international indices (for more information, click here).
However, the indices of other Eastern European countries have also suffered from the current geopolitical situation.
On the one hand, there are fears that the conflict will spread to these countries as well. On the other hand, these countries are importers of raw materials. As a result, the sometimes-extreme rise in commodity prices has led to a shock. This exacerbates the problem of high inflation rates that already existed before.
The following chart shows the development of the stock markets in Poland, Turkey and Hungary. It is easy to see here how the start of the war in Ukraine led to losses in these Eastern European stocks. In the meantime, some of the losses have been recovered.