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. As required by the Austrian Investment Fund Act, this 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 Austrian Investment Fund Act:

  • 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
  • Permanent (most often, 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

 

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Disclaimer

This document is an advertisement. All data is sourced from ERSTE-SPARINVEST Kapitalanlagegesellschaft m.b.H. and Erste Asset Management GmbH unless indicated otherwise. Our languages of communication are German and English.

The prospectus for UCITS (including any amendments) is published in Amtsblatt zur Wiener Zeitung in accordance with the provisions of the InvFG 2011 in the currently amended version. Information for Investors pursuant to § 21 AIFMG is prepared for the alternative investment funds (AIF) administered by ERSTE-SPARINVEST Kapitalanlagegesellschaft m.b.H. and 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 § 21 AIFMG, and the key investor document/KID can be viewed in their latest versions at the  web site www.erste-am.com 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 investor document is available, and any additional locations where the documents can be obtained can be viewed on the web site www.erste-am.com.

Please consult the corresponding information in the prospectus or Information for Investors pursuant to § 21 AIFMG for restrictions on the sale of fund shares to American citizens. Misprints and errors excepted.