If you are planning to become an investor, here are some important facts to keep in mind!

What happens in the event of a fund participation titles purchase?

An investment fund is a financial solution for investing capital. Because the investor's assets are at stake and financial products generally require more detailed explanation, participation titles:are usually offered in banks by trained investment advisors. 

The following parties are involved when investing in a fund:

Chart: Illustrative diagram of the parties involved in a fund purchase

How to purchase participation titles

A.     Via our distributor, BCR, at one of their branches:

1

1. Open a current account at BCR, Romania.

2

Fill in the subscription forms (signing-up form and subscription form) together with a branch operator. The first subscription for any of our investment funds will be made only at BCR central office.

3

The transfer of the money will be automatically processed.

Direct subscription: If, on the signing-up form, you ticked the box for direct subscriptionfurther subscriptions that you make will not require another subscription form. All that would be needed will be to transfer the amount of money into your chosen fund account, and the management company will issue the participation titles corresponding to the amount transferred.

B.      Via SAI Erste Asset Management central office

1

Fill in the subscription forms (signing-up form and subscription form) together with a SAI Erste Asset Manangement SA representative. The first subscription for any of our investment funds will be made only at Erste Asset Management central office

2

Transfer the money you have in your current account into the chosen fund account. The transfer can be made via money order, internet banking or standing order. For payment orders, the “Beneficiary” will be completed with the name of the fund, the "Beneficiary IBAN” will be completed with the IBAN code of the account of the fund indicated in the list below, and the "Payment details" will be completed with "Subscription Fund name, Payer name, Payer Personal Identification Code/Registration Code"

3

If, on the signing-up form, you ticked the box for direct subscription, further subscriptions that you make will not require another subscription form. All that would be needed will be to transfer the amount of money into your chosen fund account, and the management company will issue the participation titles corresponding to the amount transferred

(*) The omnibus fund accounts available for SAI Erste Asset Management SA distribution are:

- RON denominated funds:

  • ERSTE Liquidity RON (former ERSTE Money Market RON) – IBAN in RON: RO73 RNCB 0090 1280 9372 0005
  • ERSTE Bond Flexible RON – IBAN in RON: RO47 RNCB 0090 0928 8537 0513
  • ERSTE Balanced RON – IBAN in RON: RO47 RNCB 0090 0928 8647 0299
  • ERSTE Equity Romania – IBAN in RON: RO50 RNCB 0090 0928 8661 0313
  • YOU INVEST Active RON – IBAN in RON: RO79 RNCB 0090 0935 0331 0571

- EUR denominated funds:

  • ERSTE Bond Flexible Romania EUR - IBAN in EUR: RO25 RNCB 0090 1342 7121 0004
  • YOU INVEST Balanced EUR - IBAN in EUR: RO78 RNCB 0090 1342 7112 0004
  • YOU INVEST Active EUR - IBAN in EUR: RO06 RNCB 0090 1342 7062 0004

Documents needed for subscription:

Resident retail investor: ID/ passport
Nonresident retail investor: passport (exception for nonresidents, EU citizens: passport or another ID available for the residence country)
Legal person investors: a certified copy of a document that confirms legal representative capacity to sign the Signing-up form or an authentic delegacy in which the legal representative nominates an authorized person to sign the Signing-up form and to make transactions with unit funds. Other documents needed:

  • copy of the registration certificate
  • copy of the legal representative’s ID document
  • Trade Register certificate
  • copy of the company’s charter/ certificate of incorporation and by laws

What happens in the event of a fund participation titles redemption?

  • The redemption of the fund units can be registered only to the BCR branches or to SAI Erste Asset Management SA headquarter.
  • Investors shall be entitled to redeem at any time the fund units held, either in part or in full. When following the submission of a Redemption Request Form, investors are left with less than one fund unit, the residual fraction shall be mandatorily redeemed on the same occasion.
  • Once submitted at the venues of distributors or at the headquarters of SAI ERSTE, as appropriate, the redemption request becomes irrevocable.
  • Upon receipt of a Redemption request, SAI ERSTE calculates the amount due to the investor and, when distributors are involved, such distributors shall pay out redemptions at their venues upon receipt of relevant instructions from SAI ERSTE.
  • No cash payouts are made at the headquarters of SAI ERSTE or at the venues of distributors, as appropriate.

Investment services agreement

As of January 2019, following completion of the transitional period for the implementation of Law no. 126 / 2018 on markets in financial instruments, the distribution of fund shares via the authorized distributor Banca Comercială Română S.A. (BCR) will be deemed an investment service. Thus, distribution of shares will be carried out by Banca Comercială Română, subject to all the additional rules and conditions governing the business pursued by BCR as credit institution which provides investment services.

In light of the foregoing, when selecting to subscribe/redeem fund shares via BCR, investors will enter an investment services agreement (the Agreement). The parties to this Agreement may be both individuals and legal entities.

The subject matter of the agreement will be the provision of investment services (trading on behalf of the clients) and ancillary services (the safekeeping of financial instruments).

The terms and conditions of the Agreement will be agreed between BCR and each individual investor, subject to the legal provisions regulating the provision of investment services.

For details, please visit the website of Erste AM.

The investment services agreement will also include provisions concerning:

  • applicable charges and payment methods
  • notices
  • one-time costs before investments
  • the client’s MIFID classification
  • authorised representatives
  • call recording and record retention
  • order/communication transmission between investors and the bank: telephone, hardcopy, e-mail
  • obligations of the parties
  • transaction settlement
  • online trading
  • disclaimers

Documents:

  • investment services agreement
  • account opening form for: stock markets, bonds, Government securities, fund shares, and structured deposits
  • fees associated with stock markets, bonds, Government securities, and fund shares
  • applicable terms and conditions
  • MIFID information package

The investment services agreement will be signed in the bank’s IT system, as follows:

  • select the client (who must have current accounts opened with BCR), and his/her data is retrieved from the system
  • enter the required mandatory information (current account opened with BCR, authorised representatives, e-mail address, investor eligible for compensation, LEI code for PJ (legal entity) clients, types of financial instruments to be traded)
  • upload the scanned agreement in the IT system, after printing and signing it
  • trading in fund shares may start immediately; trading in other products requires the opening of accounts in the corresponding trading systems
  • archive agreement as barcode
     

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Disclaimer

This is an advertising material. Previous performance of the Fund is not a guarantee of future results! Please read the prospectus and the key investor document (KIID) before investing in fund! The Prospectus and the key investor document (KID) are available in Romanian and English language on www.erste-am.ro and may be obtained from the agencies/units pertaining to the Romanian Commercial Bank and from the premises of SAI Erste Asset Management S.A.