What is a fund?

Definition

A fund consists of a portfolio of selected securities that is managed by experts (fund managers) subject to statutory requirements concerning the broad distribution of risk.

By pooling the money of a number of individual investors, the fund has sufficient capital to invest in many securities within a defined market. Separately, the individual investors would have great difficulty or need to invest substantial amounts to achieve the resulting distribution of funds (and risk). Instead of the individual equities, the investor holds fund units that substantiate his/her share in the fund's assets

The benefits of investment funds

  • High level of flexibility: Funds can be sold and redeemed at any time and with no limit with respect to volume (note: please refer to the fund's terms and conditions for any trading restrictions)
  • It is also possible to invest small amounts in a fund
  • Anyone can invest; there are no limits on the number of fund units
  • All investors are treated equally, regardless of how much they have invested
  • Securities are chosen and the fund portfolio is constantly monitored and optimised by experts
  • Processing is handled by the investor's bank: How to Buy
  • No conflicts of interest: The management of the fund (by the investment company) and account management/administration (by the custodian bank) are kept separate
  • The management and administration of the fund are subject to strict internal and external controls
  • Documents are provided for the information of investors (e.g. annual report, fund terms and conditions, sales prospectus etc.), enabling the greatest possible degree of transparency
  • Maximum level of security in the event of the insolvency of the investor's bank, the bank charged with managing the fund (custodian bank) or the investment company thanks to the fact that funds are classified as special funds

Risks to bear in mind

  • The prices of the securities held by the fund (particularly equity funds and alternative investments) can fluctuate substantially
  • Capital losses are possible
  • For funds that invest in foreign currencies there is a risk that exchange rates will change
  • The interest and payouts for securities depend on the performance of the issuing company
  • Prices may fall if credit ratings are downgraded
  • Rising interest rates may cause prices to fall
  • The purchase of fund units involves one-off costs ("issue premium")
  • The amount of these costs depends on the fund chosen

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Disclaimer

Previous performance of the Fund is not a guarantee of future results! Please read the prospectus and the key investor document (KID) provided in art. 98 of G.E.O. no. 32/2012 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.

Open end fund ERSTE Money Market RON (former ERSTE Monetar), NSC Decision 596/04.07.2012, FSA Register no. CSC06FDIR/400079; Open end fund ERSTE Bond Flexible RON (former BCR Obligatiuni), NSC Decision 1872/2007 FSA Register no. CSC06FDIR/400039; Open end fund ERSTE Bond Flexible Romania EUR, NSC Decision 371 / 25.04.2013, FSA Register CSC06FDIR / 400081; Open end fund ERSTE Balanced RON (former BCR Dinamic), NSC Decision 3117/2004, FSA Register no. CSC06FDIR/400002; Open end fund ERSTE Equity Romania (former BCR Expert), NSC Decision 3215/2005, FSA Register nr. CSC06FDIR/400024; Open end fund YOU INVEST Solid RON, FSA Authorisation no. A/21/2014, FSA Register no. CSC06FDIR/400087; Open end fund YOU INVEST Balanced RON, FSA Authorisation no. A/23/2014, FSA Register no. CSC06FDIR/400089; Open end fund YOU INVEST Active RON, NSC Decision no. 1870/2007, FSA Register no. CSC06FDIR/400042; Open end fund YOU INVEST Solid EUR, FSA Authorisation no. A/22/2014, FSA Register no. CSC06FDIR/400088; Open end fund YOU INVEST Balanced EUR, NSC Decision no. 370/ 2013, FSA Register no.CSC06FDIR/400082; Open end fund YOU INVEST Active EUR, NSC Decision no. 369/2013, FSA Register no. CSC06FDIR/ 400083.

SAI ERSTE Asset Management SA, authorized by NSC with the Decision no 98/21.01.2009, registered with FSA Public Registry with number PJR05SAIR/400028, Number General Registry ANSPDCP: 0017716, Phone: 0372.269.999; Fax: 0372.870.995; www.erste-am.ro; email: office@erste-am.ro.

Depository: BCR SA