imageInvestment Process

Erste Asset Management manages assets of around 55.3 billion Euros, invested in a total of more than 400 funds as well as portfolios (30.06.2016).

About 100 staff members are employed within the EAM investment department, of whom nearly a third is active in fund management. To ensure optimal investment, EAM fund managers closely cooperate with our in-house research department.

 

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

EAM 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.

Mixed 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

 

Best Execution

Best Execution means “best possible implementation” and refers to the quality standards that apply to Erste Asset Management in the investment process.

We have our own Trading Desk, which is located in the Investment Department. In addition, transactions are carried out directly by our EAM fund managers. Only Erste Asset Management-chosen and Erste Group-approved traders may conduct transactions.

Erste Asset Management is based on “Best Execution” requirements of the EU Directive on Markets for Financial Instruments (MiFID).