What is a fund?

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 according to Croatian Investment Fund Act (Official Gazette 44/16) 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 Croatian Investment Fund Act (Official Gazette 44/16):

  • 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
  • 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

This might interest you as well 

Disclaimer 

This document is an advertisement. Unless indicated otherwise, data source is Erste Asset Management Ltd. Our languages of communication are Croatian and English.The prospectus (and any amendments to the prospectus) has been published in accordance with the open-end investment funds with a public offering (Official Gazette 44/2016).

The fund prospectus and key information for investors are available to all interested parties free of charge, at the management company as well as in all offices of the Depositary. The exact date of the last publication of the prospectus, languages in which the key information for investors are available, as well as information about other places where these documents are available are published on the website www.erste-am.hr.

This document serves as additional information for our investors and is based on the knowledge of the person responsible for preparing it at the time of preparation. 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. Please note that historical return is not a reliable indicator of the future development of the fund. Please pay attention to the fact that investment in securities other than described seems to bring about the risks. Share price and yield may rise as well as fall.