Erste AM guidelines
The Principles of Responsible Investing (PRI) as laid down by the United Nations are the basis of our sustainable investment approach. As signatory of the PRI, Erste Asset Management is committed to the following principles in its investment policy:
- We will take into account environmental, social, and governance topics (ESG) in our investment analysis and decision-making processes.
- We will be an active owner and integrate ESG topics into our ownership policy and practice.
- We will require appropriate reporting of ESG topics from the companies we invest in.
- We will promote the acceptance and implementation of the PRI in the investment industry.
- We will co-operate with partners so as to increase the effectiveness of the implementation of the PRI.
- We will report on our activities and progress in the implementation of the PRI.
We also require our external partners to have either signed the PRI or to follow them
to the greatest extent possible.
Guidelines on minimum ethical standards
These are minimum ethical standards for all mutual funds (bonds, equities) of Erste Asset Management:
Exclusion of controversial weapons
Since 2012 Erste Asset Management has committed to refraining from investments in companies that are involved in controversial weapons. Among them are:
- Biological and chemical weapons
- Submunition, including possible launch and ejection systems
- Anti-personnel mines, mine-planting systems, and other mine systems
- Nuclear weapons
- Depleted uranium weapons
All retail funds and portfolios actively managed by Erste Asset Management on a discretionary basis are subject to this obligation.
No speculation on food
In line with the social responsibility of the entire Erste Group, Erste Asset Management committed in 2013 to refraining across all the investment funds and client portfolios it manages from investments that bet on an increase in food prices. In particular, for our multi-asset mandates – both umbrella funds and asset management solutions - we will not invest in third-party funds or derivatives that speculate on food prices.
No investment in coal
In 2016, Erste Asset Management was one of the first investment fund companies in Austria and Europe to commit to the exclusion of investments in coal across all mutual funds on the basis of individual securities (equities and bonds). On 1 July 2021, this policy was tightened by an exclusion of coal-fired power generation and a reduction of the revenue threshold to 5% and supplemented with findings from the Paris Climate Agreement. Therefore, companies that have communicated and committed to exit coal are exempt from the revenue threshold.
Our sustainable exclusion criteria
Since 2013, Erste Asset Management has committed itself to refrain from investing in food in all the investment funds it manages and from investing in derivatives.
In order to keep exclusion criteria operationally feasible in the sense of a detection limit, these refer to practicable / available reference values such as company turnover, share of total reserves for companies or GDP for countries. The exclusion criteria also apply to consolidated shareholdings (> 50% shareholding).
* The ESG Integration funds include: Avantgarde Global Bond Fonds, Avantgarde Global Equity Fonds, CORE Balanced, CORE Dynamic, ERSTE BEST OF WORLD, ERSTE BOND COMBIRENT, ERSTE BOND CORPORATE BB, ERSTE BOND CORPORATE PLUS, ERSTE BOND DOLLAR, ERSTE BOND DOLLAR (EUR), ERSTE BOND DOLLAR CORPORATE, ERSTE BOND DOLLAR CORPORATE (EUR), ERSTE BOND EM CORPORATE, ERSTE BOND EM CORPORATE IG, ERSTE BOND EM CORPORATE IG (EUR), ERSTE BOND EURO CORPORATE, ERSTE BOND EUROPE HIGH YIELD, ERSTE BOND INFLATION LINKED, ERSTE BOND INTERNATIONAL, ERSTE BOND USA CORPORATE, ERSTE D-A-CH Fonds, ERSTE FUTURE INVEST, ERSTE MORTGAGE, ERSTE OPPORTUNITIES MIX, ERSTE PORTFOLIO BOND EUROPE, ERSTE RESERVE CORPORATE, ERSTE RESERVE DOLLAR, ERSTE RESERVE DOLLAR (EUR), ERSTE RESERVE EURO, ERSTE RESERVE EURO PLUS, ERSTE STOCK BIOTEC, ERSTE STOCK GLOBAL, ERSTE STOCK QUALITY, ERSTE STOCK QUALITY OPPORTUNITIES, ERSTE STOCK QUALITY VALUE, ERSTE STOCK REAL ESTATE, ERSTE STOCK TECHNO, ERSTE STOCK VALUE, ERSTE STOCK VIENNA, ERSTE TOTAL RETURN FIXED INCOME, FTC Gideon I, PIZ BUIN GLOBAL, PRIVATE BANKING DYNAMIC, PRIVATE BANKING DYNAMIC PLUS, PRO INVEST CARE, RT Österreich Aktienfonds, RT VIF Versicherung International Fonds, RT Zukunftsvorsorge Aktienfonds, Top Strategie Aktiv, Top Strategie Zukunft, TOP-Fonds IV „Der Planende“ der Steiermärkischen Sparkasse, YOU INVEST FLEXIBLE active, YOU INVEST FLEXIBLE Portfolio 50
** The ESG Responsible funds with possible holdings of issues by companies and/or sovereigns include: CORE Equities, CORE Equities Europe, CORE Equities USA, ERSTE FAIR INVEST, ERSTE FONDSKONZEPT 24-1, ERSTE GREEN INVEST, ERSTE GREEN INVEST MIX, ERSTE RESPONSIBLE BOND, ERSTE RESPONSIBLE BOND (CZK), ERSTE RESPONSIBLE BOND EM CORPORATE, ERSTE RESPONSIBLE BOND EM LOCAL, ERSTE RESPONSIBLE BOND EURO CORPORATE, ERSTE RESPONSIBLE BOND GLOBAL HIGH YIELD, ERSTE RESPONSIBLE BOND GLOBAL IMPACT, ERSTE RESPONSIBLE BOND MÜNDEL, ERSTE RESPONSIBLE RESERVE, ERSTE RESPONSIBLE STOCK AMERICA, ERSTE RESPONSIBLE STOCK DIVIDEND, ERSTE RESPONSIBLE STOCK EUROPE, ERSTE RESPONSIBLE STOCK GLOBAL, ERSTE RESPONSIBLE STOCK GLOBAL (CZK), ERSTE RESPONSIBLE STOCK JAPAN, T 1750, T 1751, T 1851, T 1852, YOU INVEST GREEN advanced, YOU INVEST GREEN balanced, YOU INVEST GREEN Portfolio 10, YOU INVEST GREEN Portfolio 30, YOU INVEST GREEN progressive, YOU INVEST GREEN solid
1 International Labour Organization (ILO)
2 According to Erste AM Coal Divestment Policy
3 Commission Delegated Regulation (EU) 2020/1818 of July 2020.
4 Only those companies whose human embryonic stem cell research is associated with the destruction of embryos are excluded.
5 According to Erste AM Soft-Commodity Speculation Policy
6 According to Erste AM Controversial Weapons Policy
7 See common military list of the European Union – dual-use products need not to be excluded.
8 Based on data from Climate Watch, averaged over the maximum of the last three available years.
Please note the warnings and risk notes at the end of the document linked here.
Publications
Sustainability handbook
Sustainability means being aware of one's actions and their consequences and designing them in such a way that they do not harm anyone if possible. In other words, actions and deeds of the present generation should not restrict the ability of future generations to act. Sustainable action means behaving like a farmer who cares for a tree in the best possible way and harvests its fruit without cutting it down. In this way, one can expect a sustainable high harvest without endangering the livelihood of tomorrow.
Stewardship policy
We are committed to act as responsible stewards of the assets we manage and take accountability for our actions. By integrating sustainability into our investment strategies, we want to promote corporate responsible behavior to contribute to a positive social and environmental impact. Our stewardship policy describes the scope of our responsible investment practices and the processes in place to foster sustainable performance, with active ownership at the heart of our strategy.
Biodiversity
The global crisis biodiversity is facing, is a threat to our planet. Our financial and economic systems are not exempt from this. However, investments in nature also offer opportunities. Erste Asset Management's Biodiversity Policy defines concrete measures and goals that are integrated through our engagements and votes, as an active investor.
Active Ownership
By active ownership we mean our responsibility to not only take into account sustainability issues when selecting the securities for our portfolios as investors, but also to actively push for measures towards social responsibility, environmental protection, or stronger transparency from companies that we invest in.
In doing so, we distinguish between engagement, i.e. the formal or informal dialogue with the company, and voting, i.e. the exercise of voting rights at Annual General Meetings (AGMs). Both activities pursue the goal of strengthening the voice that our clients have given us by investing in our sustainable funds and submitting it to the companies.
Once a year we report in depth on our voting and engagement activities:
Voting
Voting is the second central pillar of the active ownership approach of Erste AM. We have exercised the voting rights associated with the shares in our ERSTE RESPONSIBLE funds at Annual General Meetings since 2012. Since 2016, we have also extended the exercise the voting rights to our traditionally managed equity funds. This way, we actively project the voice of our clients as indirect owners of the invested companies.
In order to ensure the transparency and consistency of our voting, we have compiled a detailed guideline and regularly and publicly report on our voting behaviour on our voting portal. This guideline does not only apply to our sustainable equity funds, but also to our traditionally managed equity funds.
Engagement
As engaged investor, we want to achieve an active dialogue with the invested companies within the framework of our sustainability process. This way, we can point out weaknesses in environmental, social, or governance areas and subsequently try to jointly find a solution for improvement. Our engagement is not only a question of responsibility but also contributes to the minimization of risk to enhance the long-term investment success of our clients. As we want to drive change in as many companies as possible, we also engage with those in which we are not invested. We carry out engagement through 3 channels:
Closed collaborative engagements
Sustainable Development Goals Reports
What are the Sustainable Development Goals (SDGs)?
The ‘Sustainable Development Goals’ are a global call to fight poverty, protect the planet and improve living conditions and prospects for all people. The 17 goals were adopted by all UN member states in 2015 as part of the ‘2030 Agenda for Sustainable Development’, which sets out a 15-year plan to achieve the goals.
Erste Asset Management GmbH (EAM) supports the Sustainable Development Goals of the United Nations. Consequently, EAM analyses and illustrates the contribution of the companies included in the funds managed by EAM to these goals. Thus, we are accountable and intend to encourage companies to behave in a more sustainable way and contribute to these goals. Standardised reporting on the SDGs is conducted on a regular basis for the following funds:
Please note the important legal information as well as the risk notes at the bottom of the page for each investment fund.
Further publications of Erste AM
Impact folder
ESG Reports
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ERSTE ETHIK AKTIEN GLOBAL
ERSTE ETHIK ANLEIHEN
ERSTE RESPONSIBLE BOND
ERSTE RESPONSIBLE BOND EM CORPORATE
ERSTE RESPONSIBLE BOND EURO CORPORATE
ERSTE RESPONSIBLE BOND GLOBAL HIGH YIELD
ERSTE RESPONSIBLE RESERVE
ERSTE RESPONSIBLE STOCK AMERICA
ERSTE RESPONSIBLE STOCK DIVIDEND
ERSTE RESPONSIBLE STOCK EUROPE
ERSTE RESPONSIBLE STOCK GLOBAL
ERSTE RESPONSIBLE STOCK JAPAN
Sustainability profiles
Here you will find selected sustainability profiles of our equity and bond funds that apply the Erste AM sustainability strategies Impact and Responsible.
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Disclaimer and legal notes
ERSTE RESPONSIBLE STOCK AMERICA
ERSTE RESPONSIBLE STOCK EUROPE
ERSTE RESPONSIBLE STOCK GLOBAL
ERSTE RESPONSIBLE STOCK DIVIDEND
ERSTE FAIR INVEST
ERSTE GREEN INVEST
ERSTE GREEN INVEST MIX
ERSTE WWF STOCK ENVIRONMENT
ERSTE ETHIK ANLEIHEN
ERSTE ETHIK AKTIEN GLOBAL
ERSTE RESPONSIBLE BOND
ERSTE RESPONSIBLE BOND EURO CORPORATE
ERSTE RESPONSIBLE BOND EM CORPORATE
ERSTE RESPONSIBLE BOND GLOBAL IMPACT
ERSTE RESPONSIBLE BOND GLOBAL HIGH YIELD
ERSTE RESPONSIBLE RESERVE
ERSTE RESPONSIBLE STOCK JAPAN
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.