ERSTE STOCK RUSSIA invests primarily in equities of companies domiciled or operating in Russia. The fund's investment process is based on fundamental company analysis. In addition, shares of companies from the rest of the Commonwealth of Independent States (CIS, successor states of the Soviet Union) may also be included. In the selection of securities, the focus is on high-quality and high-growth companies. Hedging of the foreign currency risk from the Russian ruble is generally not planned, but possible.
The fund pursues an active investment policy. Assets are selected on a discretionary basis. The fund is oriented towards a benchmark index (for licensing reasons, the specific naming of the index used is made 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 for ERSTE STOCK RUSSIA have been suspended 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 portfolio before the suspension of price calculation
The proportion of Russian equities in the portfolio as of February 24th, 2022 was 100%. This corresponds to the weighting of the above-mentioned benchmark index.