Investment process

Erste Asset Management d.o.o. (EAM) is a member of Erste Asset Management Group, which manages assets of around EUR 63 billion invested in more than 400 funds and portfolios. EAM manages nine UCITS funds, two alternative funds with private placement, and offers private portfolio management and investment consulting services.

All investment processes are based on the following principles:

Team Approach The close and continuous collaboration within the teams of specialists and between investment departments creates an important competitive advantage
Flexibility Short distances between the teams and the management of the investment department (Chief Investment Officer) allow for a rapid response to external events, such as market shocks.
Consistency Erste AM is faithful to its one chosen investment strategy, but it also works continuously to further its development.
Traceability 
The decisions of fund managers must be traceable. Only then can continuous quality assurance and improvement be ensured.

The different asset classes, like equities, bonds, commodities, etc. require different methods and models of assessment. The main approaches at Erste Asset Management are:

Investment Process

Description

Example of Use

Bottom Up - qualitative

 

The selection of individual securities is the central focus; the portfolio composition is influenced by stock selection.

Eastern European equities

Top Down

 

Economic analysis influences the composition of the portfolio at country or sector level.

Balanced Funds

Fundamental-quantitative

 

The different asset classes are analysed for portfolio creation, on the basis of fundamental constants within the historical nexus.

Global equity funds, where country weighting or sector weighting is in the foreground

Technical Models

 

These models serve to determine short, medium or long-term trending. The output of these models leads to buy and sell signals.

Are used as an indicator for buy and sell signals

Rulebook on Business Conduct and Prevention of Conflict of Interest

The Company has adopted a Rulebook whose purpose is to define basic principles and procedures to avoid conflicts of interest between the Company and the client or clients  with each other and provides solutions if conflict of interest can not be avoided.

The Rulebook also defines the rules of conduct of the Company and its employees, including policies to prevent abuse that could affect the stability and integrity of the market and the prohibition of receiving additional incentives in relation to the services provided by the Company and administrative work in related to the same.

Rulebook will be updated as necessary.

For more information, you can download Policy (only in Croatian):

Remuneration policy

Erste Asset Management adopted Remuneration policy to achieve balance between cash and non-cash rewards and fixed and variable receipts. Cash and non-cash prizes are linked to the values and strategies of the Company. Receipts are fixed or variable. Fixed receipt reflect the relevant professional experience, competence and organizational responsibility of employees. Variable receipts are based on performance, exceptionally and under other conditions. Variable receipts provide incentives for long term cautious risk taking and good risk management.

The policy defines all elements related to the receipt, apart from education, giving in kind and similar benefits.

The Company has defined the following groups of employees as risk-taking: Management, Directors of all departments, fund managers, portfolio managers. More information can be found here:

 

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.