ERSTE-SPARINVEST biggest investment company in Austria

CEO Heinz Bednar: “Investors used their opportunities on the financial markets“

Assets under management of ERSTE-SPARINVEST, the biggest subsidiary of Erste AM, increased by 7.9% to EUR 34bn last year
Assets under management held by sustainable funds exceeded EUR 5bn for the first time
As of 31 December 2017, Erste Asset Management (Erste AM) holds assets under management of EUR 63.3bn (+7.4%)

For the fifth time in a row, ERSTE-SPARINVEST, the biggest subsidiary of Erste Asset Management, came in first among the Austrian investment companies last year in terms of assets under management, as reported by VÖIG (Vereinigung österreichischer Investmentgesellschaften), the Association of Austria Investment Companies in its latest market update. Assets under management of ERSTE-SPARINVEST increased to EUR 34bn, i.e. +7.9% or EUR 2.5bn.

Total assets under management, held by the group in investment funds in Austria, i.e. Erste Asset Management (Erste AM) together with ERSTE-SPARINVEST, increased to EUR 39.6bn. “In 2017, our assets under management held in Austria increased by about EUR 2.8bn. At a growth rate of 7.7%, we outperformed the average growth rate of the overall fund market,” as Heinz Bednar, CEO of Erste Asset Management, sums it up.

Bednar: “Investment is something rational“

The fund industry had a good year in 2017. The willingness to invest in funds was up on the basis of the accelerating economy. According to the latest analysis of VÖIG, total assets under management (i.e. held by funds) increased by EUR 8.3bn or 5% to EUR 175.4bn. This sets a new record.

The sentiment on the capital markets, which was positive across the board, laid the foundation for this development. “In spite of political tensions, we are looking back on a successful year 2017 on the stock exchanges. The upbeat sentiment helped the performance. Investors recognised the opportunities in the riskier asset classes and put the positive market environment to good use by investing in funds. Investment has always been something rational, and our success is just one of the results of this fact,” as Bednar explains.

Assets under management held in sustainable funds increase above EUR 5bn

Slightly more than a third (34.5%) of the assets invested in funds via Erste AM is held directly by retail investors, while 65.5% of the assets are managed on behalf of institutional investors. As of the end of 2017, sustainable equity funds account for 20.3% of total assets under management held by year end.

Sustainable funds: allocation by asset class - as of 31 December 2017:

73% fixed income funds

20.3% equity funds

6.7% mixed funds and special funds

Source: Erste Asset Management

Sustainable equity funds have become increasingly popular with Austrians. As Heinz Bednar says, “In 2011 assets under management held by sustainable funds amounted to EUR 2.4bn. This number has doubled in the meantime, which shows the momentum with which this segment is developing among retail and institutional investors.” With more than 15 years of experience in sustainable investments, Erste Asset Management is one of the pioneers in Austria in this field.

Erste Asset Management group increases assets under management to EUR 63.3bn

Erste Asset Management group has had a very good year 2017. Erste AM coordinates and is responsible for the asset management activities (asset management with investment funds and portfolio solutions) within Erste Group Bank AG. At its locations in Austria and Germany, Croatia, Romania, Slovakia, the Czech Republic, and Hungary, it holds assets under management of EUR 63.3bn (as of 31 December 2017). We were particularly pleased with the development in Austria, the Czech Republic, and Slovakia, where the investment company recorded significant increases. Mixed funds and equity funds were particularly popular.

Assets under management - as of 31 December 2017:

Austria*	EUR 44.9bn
Czech Republic	EUR 9.6bn
Croatia	EUR 0.7bn
Hungary	EUR 3.7bn
Romania	EUR 1.6bn
Slovakia	EUR 1.7bn
Erste Asset Management total **	EUR 63.3bn

Source: Erste Asset Management; includes investment funds and portfolio solutions

* thereof ERSTE-SPARINVEST: EUR 34bn

** After effects from consolidation of EUR -0.8bn including Erste Immobilien KAG (EUR 1.7bn)

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.