launch of new investment fund for eastern europe
DESCRIPTION
Presentation from TBLI CONFERENCE EUROPE 2008.TRANSCRIPT
TBLI Conference Europe 2008
‘ESPA VINIS STOCK EUROPEEMERGING’ -Launch of New Investment Fund forEmerging Europe
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CEE Overview
The ESPA VINIS STOCK EUROPE EMERGING Fund
Our SRI Methodology
Agenda
Contact Details
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WWF… Partner for theme fundsVINIS… Brand of sustainable funds
Verantwortung (Responsibility), Innovation,Nachhaltigkeit (Sustainability), Investment,Sicherheit (Safety)
ESPA VINIS BOND
ESPA VINIS STOCK AUSTRIA
ESPA VINIS STOCK EUROPEESPA VINIS STOCK GLOBAL
ESPA WWF STOCK UMWELT
ESPA WWF STOCK CLIMATE CHANGE
2001 2002 2003 2004 2005 2006 2007
ESPA VINIS STOCK EUROPE-EMERGING
2008
ESPA’S fund management has long term experience in the CEEregion as well as in SRI
ESPA VINIS CASH
Timeline Responsible Investment Funds
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Country Total GDP Population GNI per capita(in USDmn) (in mn) (in USD)
Ukraine 106,469.0 46.79 1,940Bulgaria 31,483.0 7.69 3,990Serbia 31,988.6 7.44 4,030Rumania 21,590.4 21.59 4,830Turkey 402,710.0 72.98 5,400Russia 986,939.6 142.50 5,770Lithuania 29,766.0 3.39 7,930Latvia 20,120.0 2.29 8,100Poland 338,733.0 38.13 8,210Croatia 42,925.5 4.44 9,310Slovak Rep. 55,048.6 5.39 9,610Hungary 112,920.0 10.07 10,870Estonia 16,409.8 1.34 11,400Czech Rep. 143,018.0 10.27 12,790Slovenia 37,303.4 2.01 18,660Austria 322,000.0 8.28 39,750
The investment Universe comprises countries of Central EasternEurope including RussiaInvestment Universe
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» Main beneficiary of the high oil andgas price
» Many sectors will benefit from thereforms / substantial public andprivate investments in key sectors(utilities, telecoms, infrastructure)earmarked for 2007-2010
» Stable political situation: Putin’sposition is stronger than ever
» No further changes to Gazprom’sshareholder structure
» Russia’s accession to the WTO
» Markets: Poland, Czech Republic,Slovakia, Hungary, Slovenia,Estonia, Latvia, Lithuania,Romania, Bulgaria
» Economic growth rates more thantwice as high as those of WestEuropean economies
» Macro-economic setting andpolitical stability are constantlyimproving
» Structural changes andprivatisations very advanced
» Convergence not yet achieved
» Strong dynamics in the financialsector
» Markets: Croatia, Turkey, Ukraine,Serbia
» Economic growth rates higher thanin Western Europe
» Drastic valuation discounts andlarge growth potential
» Falling political risk
» Turkey – long-term convergence
Russia New EU member states Potential candidates
The new EU member states as well as potential candidates andRussia are showing above average growthcompared to the EU-15Deep Dive Investment Universe
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- Increase in demand- Growing traffic- Infrastructure improvements to
achieve EU levels
- AM investments out of the region still inearly stages
- AuM showing enormous growth rates- High potential: Insurance & service sector,
banks
- Catch-up potential- Upper middle class
established
- Substantial resources inRussia and former CIS states
CEEConsumer
demand
Infra-structure
Investments
Commodities
The structure of our fund focuses on growth themes such ascommodities, infrastructure, and consumer demandMain Growth Themes
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CEE Overview
The ESPA VINIS STOCK EUROPE EMERGING Fund
Our SRI Methodology
Agenda
Contact Details
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The essential characteristics of sustainable investments arealso strong arguments for SRIMain Arguments for SRI
Positive
Neutral
Slightly Negative
Information Effect
Anticipation Effect
Positive Selection Effect
Small Companies Effect
Diversification Effect
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Source: ESPA VINIS, 2008
Total Universe
SRI Universe
BUY HOLD SELL
Portfolio Optimisation
SRI- RETURN
Economic Filterfor TimingPurposes
Ratios,TE-Analysis
‘Ethics Committee‘/StakeholderKnow-how
Screening
‘Investment Board‘/ Investment Know-how
Co-operation ICCSR/Nottingham University
SRI - Process& Financial
Quantificationof Extra-financial
Information
ERSTE-SPARINVESTFinancial Rating
&Co-Management
PortfolioConstruction
Processaccording to
ERSTE-SPARINVEST
Voting & EngagementProcess
I
II
III
IV
Specialised Rating Agencyfor Central and Eastern Europe
Ris
k M
anag
emen
t
Res
pons
ibili
ty –
SRI-T
eam
ER
STE-
SPA
RIN
VEST
Research SRI-TeamERSTE-
SPARINVEST Stakeholder Research
Our VINIS Management Approach consists of 4 layers andthrives to be as thorough as possible assessing firms for SRIcriteriaOverview Management Approach
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Stakeholder criteria include the assessment of six stakeholdergroups:Employees, Society, Customers, Market partners, Investors,Environment
The SRI research is based on exclusionary andstakeholder/best-in-class criteriaSRI Research
Exclusionarycriteria
• Armaments• Nuclear Energy• Addictive Drugs• Gene Technology• Gaming
StakeholderCriteria/
Best-in-Class
Analysis & evaluation are undertaken on 4 different levels• Principles & Strategies• Management Systems & Organisation• Products & Services• Program, Activities & Results
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The (SRI) evaluation scale and the CSR rating process behind rangefrom the grade ‘A+’ (innovative) to the grade ‘C-‘ (strongly regressive).The ratings are based on a point system, where ‘A+’ is equal to 100points (upper limit) and ‘C-‘is equal to -100 points (lower limit).
Source: RFU, ESPA VINIS, 2008
Companies are rated based on a scale that ranges fromA+ to C-SRI Evaluation Scale
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Source: RFU, 2008
Every company is screened and rated based on a variety ofcriteriaExample for Rating Methodology
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Top-Down
Country-Allocation
TechnicalSentimentValuationMacroPolitics
_________150 Stocks
RiskmanagementRiskreports / Riskmonitor / Performance Attribution
InvestmentUniverse
Emerging-MarketsTime zoneEastern Europe
_________500 Stocks
Bottom-Up
Stock-Selection
TechnicalSentimentValuation
_________90 Stocks
Portfolio-construction
Absolute RiskExposure90%-100%
Active Risk
Implemen-tation
Trading
Buy / SellDiscipline
Portfolio
60-90 Stocks
Filter
LiquidityFilter
________150 Stocks
Our Investment Process filters the most promising stocks fromthe initial universe to the actual portfolio of 60-90 stocksERSTE-SPARINVEST Investment Process
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CEE Overview
The ESPA VINIS STOCK EUROPE EMERGING Fund
Our SRI Methodology
Agenda
Contact Details
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ESPA VINIS STOCK EUROPE EMERGINGKey Data
Investment-Universe:
Currencies
Type and Style: Equity Fund, SRIISIN: (T) AT0000A09YL3Benchmark: MSCI EM Eastern Europe 10-40Management Fee: 180 bpsVolume as of 10/31/08: 4,3 Mio.EUR
Performance since 10/06/08
Performance as of 10/31/08 (since 06/10/08):relative Performance (MSCI Eur. Emerg.):Performance as of 10/31/2008 (since 09/30/08):relative Performance (MSCI Eur. Emerg.):
- 39.99 %+ 12.03 %- 23.49 %+ 5.42 %
OTB – HUMOL – HUMagyar Telecom – HUOMV – ATKomercni Banka – CZ
6.24%5.90%5.41%5.23%4.87%
INA – CROPKN Orlen – PLVerbund – ATGrupa Lotos – PLCesky Telecom – CZ
4.85%4.35%4.28%3.78%3.78%
AustriaSloveniaCroatiaSerbiaHungary
Czech RepublicPolandRumaniaBulgariaTurkey
EstoniaLithuaniaUkraineRussia
HRK 11,60% EUR (Cash)8,59%
RON 1,91%
LTL 0,42%
PLN 13,98%
HUF 17,54%EUR 16,52%
USD 7,60%
CZK 8,86%
TRY 12,67%
RSD 0,30%
Top Positions
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CEE Overview
The ESPA VINIS STOCK EUROPE EMERGING Fund
Our SRI Methodology
Agenda
Contact Details
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Degree of a Mag.rer.soc.oec. from Vienna University of Economics and BA(comparable to ‚master‘ degree in UK)
1989
Analyst at Erste Bank1988
Lecturer at Vienna University of Economics and Business Administration,University of Linz, University of Applied Sciences in Vienna
Activities
Head of Research Erste Bank1992Chief Strategist Investment Bank Austria (1997 merged with CAIB)1996Chief Investment Officer VBV pension fund2001CEO of VINIS (consulting company for SRI investments)2006Head of Sustainability Funds at ERSTE-SPARINVEST KAG / Vienna2007
Executive MBA University of Nottingham2007Education
Experience
Wolfgang Pinner, MBA, Head of Sustainability Funds
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Stephan MolzahnSenior Managere-mail: [email protected]
Leo PilgerstorferJunior Managere-mail: [email protected]
ERSTE-SPARINVEST KAGInstitutional Sales – International
1010 Wien, Habsburgergasse1aTel. : +43 (0)5 0100 - 19960Fax : +43 (0)5 0100 9 – 19960Internet: www.sparinvest.com
Contacts
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Disclaimer
This is an advertisement. Our languages of communication are German andEnglish. The latest version of the Prospectus (and any changes thereto) has beenpublished in the “Amtsblatt der Wiener Zeitung”, in accordance with the provisionsof the Austrian Investmentfondsgesetz [Investment Funds Act]. Copies areavailable free of charge to interested parties at the registered offices of bothERSTE-SPARINVEST Kapitalanlagegesellschaft m.b.H. and Erste Bank deroesterreichischen Sparkassen AG (the custody bank). The most recent publicationdate and details of any other collection offices are published on the ERSTE-SPARINVEST KAG website (www.sparinvest.com). This document serves toprovide additional information to our investors and reflects the knowledge of itsauthors at the time of going to press. Our analyses and conclusions are of ageneral nature and do not take into account the personal needs of our investors interms of income, fiscal situation or attitude to risk. It should be noted that pastperformance is not a reliable indicator of the future performance of a fund.