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  • Titel und Subtitel bzw. Claim ...(Thema)
  • Titel und Subtitel bzw. Claim ...(Thema)
  • Titel und Subtitel bzw. Claim ...(Thema)
  • Titel und Subtitel bzw. Claim ...(Thema)
  • Christian, thank you for the introduction. It is a great pleasure for me to be here today.
  • So … we have heard about what thematic funds are how to choose a thematic fund from an investor‘s point of view how to assess sustainability from a research agency‘s point of view now let‘s talk firstly about EAM‘s approach to thematic sustainable investments, secondly about how EAM structures its management process in this very asset class and thirdly why we believe that the question – or the topic of my presentation - might be answered in a positive way
  • EAM so to say has a history in thematic investment. We launched our first thematic sustainability fund in 2001 – some 10 years ago. I would like to talk about the comparison between sustainability funds, thematic funds and thematic sustainability funds. I want to focus on four different issues or groups of issues which might answering the question as to whether sustainability can add value to thematic investment or not - first group ESG - ESG link, criteriology, second group universe - investment focus, investment universe, sector coverage third group performance - company growth, fund target return, TE/ volatility fourth group research - research, sustainability based themes Please do remember those groups if possible
  • The graph on page 4 illustrates the EAM investment process in sustainability and thematic sustainability investing. Let‘s discuss the „ universe group “ first. Though the investment focus, investment universe and sector coverage are different, the management process for both sustainability funds and thematic sustainability funds is very much the same. EAM employs a four layer concept – including – to put it in a nutshell – sustainability filter / investment board / portfolio construction / engagement To analyse the difference between traditional thematic and thematic sustainability funds let‘s focus on the „ ESG group “. For conventional thematic funds levels 1 and 2 would not apply – becaause of the „missing link“ – the ESG link, criteriology . So there is no extra-financial filter employed.
  • The issues of the „ performance group “- being company growth , fund target return and TE/ volatility - feed into fund performance. The TE of our global environmental technology fund is three-fold the TE of our global sustainability equity product Conventional thematic funds are expected to show even higher volatility (non-sustainable sectors, higher turnover, short-term trading)
  • Page 6 helps to cover the “ research group ” of issues. Empirical analysis shows that Research , research partners and an environmental committee that focus either on sustainability or on sustainability based themes lead to fund structures that deviate substantially. The group illustrates the market cap. composition our global sustainability equity product vs our global environmental technology fund and our global climate change fund The research process leads to a significant small cap bias which is less pronounced for a conventional thematic product as there often are – due to the lack of ESG research - large caps included which generate only a small fraction of their revenues from the respective themes … I will focus on this topic later on
  • Now how can one make sure that a thematic investment is sustainable ? How can thematic products become interesting for institutional investors like LGT?
  • First let‘s talk about know-how and the quality of the process To make sure that sustainability is considered in all stages of the process you have to have excellent research via partners that means 1 either research agencies and/or 2 committees EAM has both – as you see above. We chose our research agencies 5 years ago – via a tender The environmental committee started about 5 years ago as well.
  • What is also essential is to develop a methodology for screening and/or best-in-class and/or engagement. As illustrated above, EAM uses a detailed set of criteria in its screening process . The set of criteria includes 1 Exclusionary criteria based on products and technology 2 Exclusionary criteria based on sectors 3 Human rights and corruption clause Our engagement process combines communication with companies that are either part or that are not (yet) part of our universe.
  • The reconciliation of data leads to a investment universe – i.e. a list of potential investments - that is in our case updated at least four times a year. The fund manager can pick from the list without further constraints on a company level. There are however limitations with regards to liquidity and sector weightings .
  • The graph on page 11 illustrates the process of portfolio construction . There is a total universe - assessed via a sustainability filter - evaluated according to state-of-the-art financial analysis - which at the and leads to the fund portfolio
  • Now I would like to come back to the topic – or rather the question – of my presentation
  • From an academic point of view (Sparkes 1995), the characterstics of sustainability funds are in most cases regarded as positive for performance => an outperformance of sustainability funds therefore seems possible (second column) Sustainable thematic funds have to be viewed differently. Let‘s compare the five effects for traditional thematic funds and thematic sustainabilty funds. Diversification is lower than for traditional thematic funds – which is an outcome of the focus on core SRI (according to EUROSIF definition) more focused themes The small company effect is even more an issue for thematic sustainability funds, leading to higher volatility on the short term but also higher outperformance in the long term. Anticipation and information effect have to be regarded as rather neutral as they are included in both thematic funds and thematic sustainability funds Positive selection effect is positive as there is a focus on sustainable and long-term management
  • We have compared the financial performance of a - so to say - good and bad thematic fund i.e. a thematic fund without sustainability and a thematic sustainability fund (which is managed by EAM) Both are part of our peer group analysis , further similarities include the same geographic focus as well as follow the same theme and have been launched within the same year. There is a clear outperformance of some 8,3 percent over the last three and a half years of the „good“ fund
  • Let‘s compare the funds in detail. Wheras the thematic sustainability fund focuses on pure plays almost only SMEs and future technologies the investment universe of the conventional fund is less restrictive, the holdings comprise companies that are certainly not among the leaders in future technologies If you look at some of the holdings from a sustainable investor‘s point of view you get goose bumps (Siemens etc.)
  • The graph on page 16 illustrates the fact that thematic sustainability funds are the xxx of sustainabilty funds and thematic funds. So my final statement is that based on academic research and performance records we excpect a slightly but nevertheless positive effect of sustainability in thematic investment from an academic point of view – neutral our fund comparison example - positive
  • Transcript

    • 1. Are Thematic Investments Sustainable? Workshop 16 TBLI Conference 2010, London
    • 2. Agenda Moderator: Christian SCHÖN (Erste Asset Management) Introduction: EAM & Thematic Investments Speaker 1: Andrea FERCH (LGT Capital Management) Thematic Investments and/or ESG Criteria? A Fund Selector‘s View Speaker 2: Till JUNG (oekom research) Case Studies of Thematic Fund Holdings & their Responsibility Rating Speaker 3 : Wolfgang PINNER (VINIS) Can Sustainability Add Value To Thematic Investing? moderated panel discussion and audience Q&A-session
    • 3.
      • Erste Group Bank is one of the leading financial institutions in Austria, Central- and Eastern Europe (EUR 209.08 bn.) *)
      • Market leader in AUT, CZ, RO, SK and CRO
      • Erste Group’s client base has grown from 0.6 m. to 17.3 m. within the last eight years
      • Return on equity 7.2%
      • Tier 1 ratio is 11.2%
      • Loan-to-Deposit-Ratio at 112.4%
      ERSTE-SPARINVEST KAG is mainly held by ERSTE GROUP BANK AG A strong and stable parent: Erste Group Bank AG *) Facts as of July 2010 Source: Fact Sheet Erste Group Bank AG, August 2010
    • 4. Organizational chart of Erste Asset Management
    • 5. International provider with strong and local anchoring
      • Erste Asset Management: countries with independent Asset Managers
      market share 22,20 % - Nr. 1* market share 25,62 % - Nr. 2 market share 21,45 % - Nr. 2 market share 45,16 % - Nr. 1 market share 20,89 % - Nr. 2 market share 11,62 % - Nr. 3 market share as of 31.08.2010 *) including ESPA, Tirolinvest, EFA and Ringturm
    • 6.
      • Signing of UN PRI (UN Principles of Responsible Investment)
        • Commitment of ERSTE-SPARINVEST to sustainably adjust fund products „ESPA VINIS“ and „ESPA WWF“.
        • International cooperation to strengthen SRI and ESG.
      • Cooperation with WWF
        • ERSTE-SPARINVEST donates a part of generated revenues of „ESPA WWF-Fonds“ for WWF Austria‘s water protection program and climate protection program.
      Sustainability within Erste Asset Management
    • 7. Thematic investments – a definition China, Russia, India Sector Region Country Issue Thematic investments focus on particular themes and/or trends : biotechnology, renewable energy, water, raw materials, internet Asia, Emerging Markets, BRIC lifestyle, environment/ ecology, demographics, health, obesity, climate change, mobility
    • 8. corporate governance  brand name and reputation  ecological uncertainty  rising energy consumption  emphasis on human capital  trend towards ‘healthy living’  demographic development  publication and consideration of extra-financial data, strengthening of stakeholders strengthening of customers over companies strengthening of environmental awareness and the importance of environmental technologies in search of alternative concepts more consideration of employees’ interests focus on production of foods and organic products long-term concepts for an aging society is primarily related to company individual Thematic investments – sustainability trends
    • 9. Narrowing themes down to ESG sustainable themes with ESG Selection all themes ESG Filter sustainable themes
    • 10. Contact Erste Asset Management GmbH Institutional Distribution – International Tel.: +43 50 100 19960 e-mail: institutional@erste-am.com www.erste-am.com
    • 11. Disclaimer "This is an advertisement. Our languages of communication are German and English. The latest version of the Prospectus (and any changes thereto) has been published in the “Amtsblatt der Wiener Zeitung”, in accordance with the provisions of the Austrian Investmentfondsgesetz [Investment Funds Act] . Copies are available free of charge to interested parties at the registered offices of both Erste Asset Management GmbH and Erste Group Bank AG. The most recent publication date and details of any other collection offices are published on the Erste Asset Management GmbH website ( www.erste-am.com ). This document serves to provide additional information to our investors and reflects the knowledge of its authors at the time of going to press. Our analyses and conclusions are of a general nature and do not take into account the personal needs of our investors in terms of income, fiscal situation or attitude to risk. This is not a personal recommendation. It should be noted that past performance is not a reliable indicator of the future performance of a fund."
    • 12. Thematic Investments and/or ESG Criteria –A Fund Selector’s View TBLI Conference London, 12 November, 2010
    • 13. Source: LGT
      • Founded in 1920
      • Owned and managed for 80 years by the Princely House of Liechtenstein
      • Clear business focus on wealth & asset management
      • Stands for stability and independence
      • Long-term orientation and alignment of interests are key elements of the business philosophy
      Total AuA: USD 90.0 billion Total AuM: USD 32.3 billion Number of staff: 1‘884 Locations globally: 29 Wealth Management LGT Capital Partners LGT Capital Management About LGT
    • 14. Sustainable Investments at LGT Market return Market risk Private Equity Equity Funds Balanced Funds Bond Funds Philanthropy LGT Venture Philanthropy LGT Sustainable Impact Global Bond Fund (EUR) LGT Sustainable Impact Global Equity Fund (EUR) Clean Tech LGT Sustainable Impact Multi-Asset Class Fund (CHF) LGT Sustainable Impact Multi-Asset Class Fund (EUR) LGT Sustainable Impact Europe Equity Fund (EUR) Source: LGT Investments open up new opportunities, but they also involve risks. Please consult the legal information at the end of this presentation.
    • 15. We aim for thematic funds and ESG criteria!
      • Global sustainability trends offer investment opportunities
      • We want to take advantage of those trends
      • At the same time we want to support sustainable development and avoid the risks involved in non-sustainable activities
      Source: LGT Investments open up new opportunities, but they also involve risks. Please consult the legal information at the end of this presentation. Sustainable Multi-Asset Class Funds Thematic Fund Selection Private Banking + E S G
    • 16. What do we expect from sustainable theme funds?
      • The funds should contribute positively to the theme and at the same time offer an attractive investment opportunity.
      • Selection criteria:
        • Consideration of ESG criteria 
        • Exclusion of controversial sectors and practices 
        • Appropriate definition of the theme 
        • Clear delineation of the investment universe 
        • Significant theme exposure of all underlyings 
        • Investment in innovative technologies 
        • Positive contribution to the theme 
      Source: LGT
    • 17. “ Tick-box research” is not the way to go! 0! Fund 1 Fund 2 Fund ... Selection Criteria - - - - using the example of water funds - Source: LGT Possible Shortcomings  No consideration of any ESG criteria  Investments in the weapon industry  Inclusion of bottled water producers  Investments with no reference to the water theme  Water exposure of the underlyings is insignificant  Focus on utilities  Investments in companies, which just profit from the theme
    • 18. Mission impossible? Source: Internet
    • 19. Our goal is to find funds that come as close as possible to the “ideal” fund
      • It is vital for us that the investment philosophy of the funds adheres
      • to the principles of sustainability (big picture!)
      • To find an appropriate fund, it is important to understand ...
      • how the managers approach the theme
      • what their understanding of sustainability is
      • how well-founded their investment decisions are
      • We evaluate all the above through intensive conversations with the managers.
      Transparency + Credibility Source: LGT
    • 20. Lessons learned ... and still learning
      • When we consider ESG criteria, the number of funds is reduced significantly
      • However, we manage to find sustainable theme funds of good quality
      • Finding those funds requires a very thorough analysis
      • The sustainable theme fund segment is in a learning and development process
      • The trend is towards more sustainability
      • By engaging in a constructive dialogue with the providers we can support this trend
      Source: LGT
    • 21. Legal information This document is intended solely for the recipient and may not be duplicated, distributed or published either in electronic or any other form without the prior written consent of LGT Group Foundation. This publication is for your information only and is not intended as an offer, solicitation of an offer, public advertisement or recommendation to buy or sell any investment or other specific product. Its content has been prepared by our staff and is based on sources of information we consider to be reliable. However, we cannot provide any undertaking or guarantee as to it being correct, complete and up to date. The circumstances and principles to which the information contained in this publication relates may change at any time. Once published, therefore, information shall not be understood as implying that no change has taken place since its publication or that it is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax or other consulting matters, nor should any investment or other decisions be made on the basis of this information alone. It is recommended that advice be obtained from a qualified expert. Investors should be aware that the value of investments can fall as well as rise. Positive performance in the past is therefore no guarantee of positive performance in the future. Forecasts are not a reliable indicator of future value developments. The risk of price and foreign currency losses and of fluctuations in return as a result of unfavorable exchange rate movements cannot be ruled out. There is a possibility that investors will not recover the full amount they initially invested. We disclaim without qualification all liability for any loss or damage of any kind, whether direct, indirect or consequential, which may be incurred through the use of this publication. This publication is not intended for persons subject to legislation that prohibits its distribution or makes its distribution contingent upon an approval. Any person coming into possession of this publication shall therefore be obliged to find out about any restrictions that may apply and to comply with them. It is up to potential investors to obtain comprehensive information and appropriate advice in their home country, country of residence or country of domicile about the applicable legal requirements and any tax consequences, foreign currency restrictions or foreign exchange controls and any other aspects that are of relevance prior to any decision to subscribe to, purchase, own, exchange or redeem such investments, or enter into any other transaction in relation to same. The securities and rights mentioned in this document may not be purchased or held by investors or for investors domiciled in the USA and/or with US citizenship, nor may such securities and rights be transferred to them.
    • 22. LGT Capital Management Contact Details LGT Capital Management Ltd. Schützenstrasse 6 8808 Pfäffikon Switzerland Phone +41 55 415 92 11 Fax +41 55 415 92 30 E-Mail [email_address] Internet www.lgt.com Andrea Ferch Senior Fund Analyst Phone +41 55 415 93 53 Fax +41 55 415 94 95 E-Mail [email_address]
    • 23. Picture description "Artists Exploring the Austrian Alps", c. 1819 HEINRICH REINHOLD 1788–1825 Reinhold was born in Gera, near Leipzig, and studied in several places, including Vienna. Having spent a short period working for Napoleon, making engravings of his military triumphal marches, he joined the circle of artists around Josef Anton Koch, who encouraged him in his study of nature and, in particular, of the Alps. The painting was produced following Reinhold's study trip through the Alps in the summer of 1818 and shows a simplified mountain panorama featuring his fellow painters Johann Christoph Erhard and Ernst Welker, the latter accompanying him to Rome one year later. © Collections of the Prince of Liechtenstein, Vaduz – Vienna LIECHTENSTEIN MUSEUM, Vienna. www.liechtensteinmuseum.at
    • 24. overview Case Studies of Thematic Fund Holdings and their Responsibility Rating TBLI Conference, 12 November, 2010, London 1. oekom research background 2. oekom Corporate Rating 3. Case studies of thematic fund holdings
    • 25. about us Experience Expertise Customized services Independence – Corporate & Country Research – universe covers the most important stocks and bonds – highest quality standard s – total staff of 38 – experienced and multi-disciplinary team of 27 analysts – Scientific Advisory Board – partner of various asset managers and inst. investors – clients primarily from AT, CH, DE, DK, FR, IE, IT, JP – advising funds and mandates with a total volume of EUR 90bn (September 2010) – commercial experience since 1993 – independence – spin-off from publishing house oekom
    • 26. oekom corporate rating Methodology and research universe Absolute Best-in-Class approach Only companies which meet predefined industry-specific minimum requirements are awarded the oekom Prime Status. Industry specific criteria The oekom database includes a total of approximately 500 indicators of which about 100 are selected for the evaluation of companies from specific industries. Ratio of industry-specific indicators to general indicators 35 : 65. Exclusionary criteria oekom research provides information on a multitude of exclusionary criteria with regard to controversial business areas (e.g. alcohol, tobacco, nuclear energy) and business practices (e.g. violations of human and labour rights). oekom Universe oekom covers approximately 3.000 companies (inter alia MSCI World, MSCI Emerging Markets, Stoxx 600, important national indices, as well as small and mid caps from sustainable industries and non-listed bond issuers.
    • 27. oekom corporate rating oekom Corporate Rating Environmental Rating Environmental Management Products and Services Eco-efficiency Social Rating Staff and Suppliers Society and Product Responsibility Corporate Governance and Business Ethics 6 categories 2 dimensions
    • 28. oekom corporate rating Abortion Alcohol Biocides Chlororganic Mass Products Embryonic Research Gambling GMOs Military Nuclear Power Pornography Tobacco Controversial business areas Animal Testing Business Malpractice Child Labour Controversial Environmental Practices Human Rights Violations Labour Rights Violations Controversial business practices Client specific exclusionary criteria
    • 29. thematic fund approaches Different investment approaches
      • funds often not limited to investments in their respective theme
      • sometimes no reference to any sustainability criteria (positive or negative)
      “ Problem solvers” Small and mid caps from “sustainable industries” (e.g. renewable energy, recycling) “ Standard values” Large caps which are (sometimes marginally) involved in problem solving “ Profiteers” Companies which profit from e.g. climate change or water scarcity but do not actively contribute to the solution of the problem
    • 30. examples of investment strategies Climate Change Fund: “… investing at least two thirds of its total non-cash assets in a well diversified portfolio of ... companies developing activities related to climate change such as alternative energies, water, waste and pollution, energy efficiency, low carbon players, industry transformers“ Water Fund: “… investments in securities of companies with activities in the water sector (utilities, waste water treatment, transportation, water desalination, treatment of waste products, equipment, services, irrigation and agriculture, nutrition, conditioning and distribution of water, hydropower, financing, etc.) ... may also invest a maximum of one third of the fund assets in equity securities and rights of companies that don't meet the above mentioned requirements regarding business sector ...“ Environment Fund: “… fund invests in ... companies with a large market capitalisation that have the best processes for ecological issues ... of their sector ; or ... innovative companies with low or medium market capitalisation that develop new technologies for environmental protection“
    • 31. evaluation criteria Exemplary evaluation of thematic fund top holdings involvement in controversial business practices (e.g. with regard to environment, labour rights, human rights) involvement in controversial business areas (e.g. defence sector) consistency of stock holdings with fund theme examples from different thematic funds (water, climate change, solar/wind power, environment) May thematic funds generally be considered as a responsible investment?
    • 32. controversial holdings Climate Change Fund Low ESG performance Environmental controversies Involvement in Environmental controversies Human Rights and Labour Rights violations at major supplier Source: www.sustainable-investment.org Major defence industry player
    • 33. controversial holdings Water Fund Source: www.sustainable-investment.org Human Rights and Labour Rights violations at major supplier Involvement in Environmental controversies
    • 34. controversial holdings Solar and Wind Power Fund Source: www.sustainable-investment.org Environmental controversies Environmental controversies
    • 35. controversial holdings Environment Fund Source: www.sustainable-investment.org Environmental controversies Environmental controversies Human Rights and Labour Rights violations Environmental controversies Human Rights violations Environmental controversies
    • 36. sustainability of thematic funds Lack of exclusionary criteria Lack of minimum requirements regarding positive criteria – some funds seem to be reluctant to exclude even serious violations of human and labour rights – regarding business areas at least an involvement in the production of banned weapons should be excluded – investment in companies which are involved in major environmental controversies is inconsistent with a “problem solver” approach – limiting the investment to small and mid cap “problem solvers” like producers of photovoltaic systems is not a guarantee for a sound responsible investment (e.g. Suntech Power and LDK Solar) – selection process of securities should include a certain minimum level of overall ESG performance to prevent that positive effects from business activities are realised at the expense of negative effects in other domains (such as human and labour rights) or even the same domain Responsible investors should be wary of investments in thematic funds and ask for transparency with regard to the underlying investment strategy
    • 37. oekom research AG Goethestr. 28 D-80336 Munich Tel: +49/89/54 41 84-90 Fax: +49/89/54 41 84-99 Email: [email_address] Web: www.oekom-research.com contact
    • 38. Can Sustainability Add Value To Thematic Investment? Workshop 16 TBLI Conference 2010, London Wolfgang Pinner, MBA
    • 39. Agenda EAM approach in thematic sustainability investment Management tools in thematic sustainability investment Value addition of sustainability in thematic investment
    • 40. EAM approach to thematic vs sustainability investment
      • Sustainability Thematic Thematic
      • funds funds sustainability funds
      • ESG driven yes no yes
      • Criteriology often no yes
      • Investment focus total economy future trends future sustainability
      • diversified approach focused approach trends, focused
      • approach
      • Investment universe broad narrow narrow
      • Sector coverage high low low
      • Company growth (above) average high high (long-term)
      • Fund return target outperform high absolute high absolute benchmark return return
      • Tracking error/ volatility low/ medium high high
      • Research specialised rating no rating agency specialised rating
      • agencies agencies (& committee)
      • Sustainability based included possible sine qua non
      • themes
      I ESG II Universe III Performance IV Research
    • 41. EAM sustainability management process Source: ESPA VINIS, 2007
    • 42. Thematic vs sustainability funds – performance track record and TE TE ~ 12 TE ~4 Performance seit 11/07/2003 ESPA VINIS STOCK GLOBAL 50,39% ESPA WWF STOCK UMWELT 39,75% MSCI World in EUR netdiv 28,74% TE ~ 12 TE ~4
    • 43. Holdings market capitalisation Thematic vs sustainability funds – portfolio structure
    • 44. Agenda EAM approach in thematic sustainability investment Management tools in thematic sustainability investment Value addition of sustainability in thematic investment
    • 45.
      • Cooperation with research agencies:
      • Independent external primary research provided by first-class partners
      • (oekom, MSCI, RFU)
      • Environmental committee - members:
        • Max Deml – specialist for ecological investments
        • Herbert Greisberger – managing director ÖGUT (Austrian society for environment and technology)
        • Christine Jasch – managing director of IÖW (Vienna Institute for Environmental Management and Economics)
        • Klaus Rosenkranz – head of CSR of Erste Group Bank
        • Andreas Wurzer – managing director of WWF Austria
      How to manage a thematic fund – sustainability process
    • 46. SRI approach based on screening and engagement Exclusionary criteria I. Exclusionary criteria based on products and technology - Nuclear power - Green gene technology - Animal testing - CITES – Convention on International Trade in Endangered Species - FCKW-producing products (Refrigerators, air-conditioning facilities etc.) - PVC products II. Exclusionary criteria based on sectors - Petroleum, Mining & Airline industry - Military devices/weapons - Automobile industry (exception: hybrid- & alternative technology) - Gaming & Pornography III. Human rights and corruption clause - Companies are excluded in case of violations of the ILO-protocol or in case of corruption Know-How ‘ESPA VINIS’ & WWF committee + How to manage a thematic fund – sustainability process
    • 47. Cooperation with WWF through environmental committee (extract of list of discussed companies): … How to manage a thematic fund – sustainability process
    • 48. Total universe (2.000+ equities) Global equities SRI filter Level I & II Fundamental selection Level III Portfolio construction Level IV Thematic universe (300 equities) Fundamental analysis Liquidity analysis Thematic analysis (200 equities) Fund portfolio (70-100 holdings) How to manage a thematic fund – portfolio construction Environmental committee initiated by WWF MSCI World net.div. & ex-benchmark universe
    • 49. Agenda EAM approach in thematic sustainability investment Management tools in thematic sustainability investment Value addition of sustainability in thematic investment
    • 50. Thematic sustainability vs conventional thematic investments – characteristics of SRI
      • Sustainability funds Thematic sustainability funds
      • vs traditional funds vs thematic funds
      • ‘ diversification effect’ slightly negative negative
      • ‘ small companies effect’ long-term positive long-term very positive
      • ‘ anticipation effect’ positive neutral
      • ‘ information effect’ positive neutral
      • ‘ positive selection effect’ positive positive
    • 51. Thematic sustainability vs conventional thematic fund – performance
    • 52. Thematic sustainability mainly pure plays more small & mid cap companies focus on sustainable future technologies  careful handling of resources Thematic sustainability vs conventional thematic fund – differences Conventional Thematic also conglomerates more large cap companies companies with only small % in future technologies  resources handling no big issue holdings: e.g. E.ON, GDF, GDF Suez, Siemens, Continental, GE, Yara, Potash Corp, Uralkali, etc.
    • 53. The final answer
      • The effect of sustainability in thematic investment is
      • neutral
      • (from an academic point of view) and
      • positive
      • (from an economic point of view)
      • => sustainability can add value to thematic investment
    • 54. Disclaimer "This is an advertisement. Our languages of communication are German and English. The latest version of the Prospectus (and any changes thereto) has been published in the “Amtsblatt der Wiener Zeitung”, in accordance with the provisions of the Austrian Investmentfondsgesetz [Investment Funds Act] . Copies are available free of charge to interested parties at the registered offices of both Erste Asset Management GmbH and Erste Group Bank AG. The most recent publication date and details of any other collection offices are published on the Erste Asset Management GmbH website ( www.erste-am.com ). This document serves to provide additional information to our investors and reflects the knowledge of its authors at the time of going to press. Our analyses and conclusions are of a general nature and do not take into account the personal needs of our investors in terms of income, fiscal situation or attitude to risk. This is not a personal recommendation. It should be noted that past performance is not a reliable indicator of the future performance of a fund."

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