Launch of New Investment Fund for Eastern Europe

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Presentation from TBLI CONFERENCE EUROPE 2008.

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Launch of New Investment Fund for Eastern Europe

  1. 1. ‘ESPA VINIS STOCK EUROPE EMERGING’ - Launch of New Investment Fund for Emerging Europe TBLI Conference Europe 2008
  2. 2. Agenda CEE Overview Our SRI Methodology The ESPA VINIS STOCK EUROPE EMERGING Fund Contact Details TBLI Conference Europe 2008 2
  3. 3. ESPA’S fund management has long term experience in the CEE region as well as in SRI Timeline Responsible Investment Funds ESPA VINIS STOCK EUROPE-EMERGING 2001 2002 2003 2004 2005 2006 2007 2008 ESPA WWF STOCK UMWELT ESPA VINIS BOND ESPA VINIS CASH ESPA VINIS STOCK GLOBAL ESPA VINIS STOCK EUROPE ESPA WWF STOCK CLIMATE CHANGE ESPA VINIS STOCK AUSTRIA WWF… Partner for theme funds VINIS… Brand of sustainable funds Verantwortung (Responsibility), Innovation, Nachhaltigkeit (Sustainability), Investment, Sicherheit (Safety) TBLI Conference Europe 2008 3
  4. 4. The investment Universe comprises countries of Central Eastern Europe including Russia Investment Universe Country Total GDP Population GNI per capita (in USDmn) (in mn) (in USD) Ukraine 106,469.0 46.79 1,940 Bulgaria 31,483.0 7.69 3,990 Serbia 31,988.6 7.44 4,030 Rumania 21,590.4 21.59 4,830 Turkey 402,710.0 72.98 5,400 Russia 986,939.6 142.50 5,770 Lithuania 29,766.0 3.39 7,930 Latvia 20,120.0 2.29 8,100 Poland 338,733.0 38.13 8,210 Croatia 42,925.5 4.44 9,310 Slovak Rep. 55,048.6 5.39 9,610 Hungary 112,920.0 10.07 10,870 Estonia 16,409.8 1.34 11,400 Czech Rep. 143,018.0 10.27 12,790 Slovenia 37,303.4 2.01 18,660 Austria 322,000.0 8.28 39,750 TBLI Conference Europe 2008 4
  5. 5. The new EU member states as well as potential candidates and Russia are showing above average growth compared to the EU-15 Deep Dive Investment Universe Russia New EU member states Potential candidates » Main beneficiary of the high oil and » Markets: Poland, Czech Republic, » Markets: Croatia, Turkey, Ukraine, gas price Slovakia, Hungary, Slovenia, Serbia Estonia, Latvia, Lithuania, » Many sectors will benefit from the » Economic growth rates higher than Romania, Bulgaria reforms / substantial public and in Western Europe private investments in key sectors » Economic growth rates more than » Drastic valuation discounts and (utilities, telecoms, infrastructure) twice as high as those of West large growth potential earmarked for 2007-2010 European economies » Falling political risk » Stable political situation: Putin’s » Macro-economic setting and position is stronger than ever political stability are constantly » Turkey – long-term convergence improving » No further changes to Gazprom’s shareholder structure » Structural changes and privatisations very advanced » Russia’s accession to the WTO » Convergence not yet achieved » Strong dynamics in the financial sector TBLI Conference Europe 2008 5
  6. 6. The structure of our fund focuses on growth themes such as commodities, infrastructure, and consumer demand Main Growth Themes - Increase in demand Infra- - Growing traffic structure - Infrastructure improvements to achieve EU levels - Substantial resources in Russia and former CIS states Consumer Commodities CEE demand - Catch-up potential - Upper middle class - AM investments out of the region still in established early stages - AuM showing enormous growth rates Investments - High potential: Insurance & service sector, banks TBLI Conference Europe 2008 6
  7. 7. Agenda CEE Overview Our SRI Methodology The ESPA VINIS STOCK EUROPE EMERGING Fund Contact Details TBLI Conference Europe 2008 7
  8. 8. The essential characteristics of sustainable investments are also strong arguments for SRI Main Arguments for SRI Information Effect Anticipation Effect Positive Positive Selection Effect Neutral Small Companies Effect Diversification Effect Slightly Negative TBLI Conference Europe 2008 8
  9. 9. Our VINIS Management Approach consists of 4 layers and thrives to be as thorough as possible assessing firms for SRI criteria Overview Management Approach Total Universe ‘Ethics Committee‘/ Co-operation ICCSR/ Stakeholder Nottingham University Know-how Specialised Rating Agency SRI - Process I for Central and Eastern Europe & Financial Research SRI-Team Quantification ERSTE- Screening Stakeholder Research of Extra- Responsibility – SRI-Team ERSTE-SPARINVEST SPARINVEST financial Information II ‘Investment Board‘/ Investment Know-how SRI Universe Economic Filter ERSTE-SPARINVEST BUY HOLD SELL for Timing Portfolio Financial Rating Purposes Construction Risk Management & III Process Co-Management according to Portfolio Optimisation Ratios, ERSTE- TE-Analysis SPARINVEST IV Voting & Engagement Process SRI- RETURN Source: ESPA VINIS, 2008 TBLI Conference Europe 2008 9
  10. 10. The SRI research is based on exclusionary and stakeholder/best-in-class criteria SRI Research • Armaments • Nuclear Energy Exclusionary • Addictive Drugs criteria • Gene Technology • Gaming Analysis & evaluation are undertaken on 4 different levels Stakeholder • Principles & Strategies Criteria/ • Management Systems & Organisation Best-in-Class • Products & Services • Program, Activities & Results Stakeholder criteria include the assessment of six stakeholder groups: Employees, Society, Customers, Market partners, Investors, Environment TBLI Conference Europe 2008 10
  11. 11. Companies are rated based on a scale that ranges from A+ to C- SRI Evaluation Scale The (SRI) evaluation scale and the CSR rating process behind range from the grade ‘A+’ (innovative) to the grade ‘C-‘ (strongly regressive). The ratings are based on a point system, where ‘A+’ is equal to 100 points (upper limit) and ‘C-‘is equal to -100 points (lower limit). Source: RFU, ESPA VINIS, 2008 TBLI Conference Europe 2008 11
  12. 12. Every company is screened and rated based on a variety of criteria Example for Rating Methodology Source: RFU, 2008 TBLI Conference Europe 2008 12
  13. 13. Our Investment Process filters the most promising stocks from the initial universe to the actual portfolio of 60-90 stocks ERSTE-SPARINVEST Investment Process Riskmanagement Riskreports / Riskmonitor / Performance Attribution Investment Filter Top-Down Bottom-Up Portfolio- Implemen- Universe construction tation Absolute Risk Trading Emerging- Country- Stock- Exposure Portfolio Markets Liquidity Allocation Selection 90%-100% Buy / Sell Time zone Filter Discipline 60-90 Stocks Eastern Europe Technical Technical Active Risk Sentiment Sentiment Valuation Valuation Macro Politics _________ ________ _________ _________ 500 Stocks 150 Stocks 150 Stocks 90 Stocks TBLI Conference Europe 2008 13
  14. 14. Agenda CEE Overview Our SRI Methodology The ESPA VINIS STOCK EUROPE EMERGING Fund Contact Details TBLI Conference Europe 2008 14
  15. 15. ESPA VINIS STOCK EUROPE EMERGING Key Data Type and Style: Equity Fund, SRI Performance as of 10/31/08 (since 06/10/08): - 39.99 % ISIN: (T) AT0000A09YL3 relative Performance (MSCI Eur. Emerg.): + 12.03 % Benchmark: MSCI EM Eastern Europe 10-40 Performance as of 10/31/2008 (since 09/30/08): - 23.49 % Management Fee: 180 bps relative Performance (MSCI Eur. Emerg.): + 5.42 % Volume as of 10/31/08: 4,3 Mio.EUR Investment-Universe: Top Positions Austria Czech Republic Estonia Slovenia Poland Lithuania OTB – HU 6.24% INA – CRO 4.85% Croatia Rumania Ukraine MOL – HU 5.90% PKN Orlen – PL 4.35% Serbia Bulgaria Russia Magyar Telecom – HU 5.41% Verbund – AT 4.28% Hungary Turkey OMV – AT 5.23% Grupa Lotos – PL 3.78% Komercni Banka – CZ 4.87% Cesky Telecom – CZ 3.78% Currencies Performance since 10/06/08 RON 1,91% TRY 12,67% PLN 13,98% CZK 8,86% LTL 0,42% USD 7,60% RSD 0,30% EUR 16,52% HUF 17,54% HRK 11,60% EUR (Cash) 8,59% TBLI Conference Europe 2008 15
  16. 16. Agenda CEE Overview Our SRI Methodology The ESPA VINIS STOCK EUROPE EMERGING Fund Contact Details TBLI Conference Europe 2008 16
  17. 17. Wolfgang Pinner, MBA, Head of Sustainability Funds Experience 2007 Head of Sustainability Funds at ERSTE-SPARINVEST KAG / Vienna 2006 CEO of VINIS (consulting company for SRI investments) 2001 Chief Investment Officer VBV pension fund 1996 Chief Strategist Investment Bank Austria (1997 merged with CAIB) 1992 Head of Research Erste Bank 1988 Analyst at Erste Bank Education 2007 Executive MBA University of Nottingham 1989 Degree of a Mag.rer.soc.oec. from Vienna University of Economics and BA (comparable to ‚master‘ degree in UK) Activities Lecturer at Vienna University of Economics and Business Administration, University of Linz, University of Applied Sciences in Vienna TBLI Conference Europe 2008 17
  18. 18. Contacts Stephan Molzahn Senior Manager e-mail: stephan.molzahn@sparinvest.com ERSTE-SPARINVEST KAG Institutional Sales – International 1010 Wien, Habsburgergasse1a Tel. : +43 (0)5 0100 - 19960 Fax : +43 (0)5 0100 9 – 19960 Leo Pilgerstorfer Internet: www.sparinvest.com Junior Manager e-mail: leo.pilgerstorfer@sparinvest.com TBLI Conference Europe 2008 18
  19. 19. 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-SPARINVEST Kapitalanlagegesellschaft m.b.H. and Erste Bank der oesterreichischen Sparkassen AG (the custody bank). The most recent publication date and details of any other collection offices are published on the ERSTE- SPARINVEST KAG website (www.sparinvest.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. It should be noted that past performance is not a reliable indicator of the future performance of a fund. TBLI Conference Europe 2008 19

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