AIF stands for alternative investment fund. Unlike retail UCITS, retail AIF are subject not only to the provisions of the Investment Fund Act 2011 (InvFG 2011), but also to the provisions of the Alternative Investment Fund Manager Act (AIFMG). Among other differences compared with retail UCITS, retail AIF are subject to expanded investment limits and issuer restrictions.

All relevant information for the investor can be found in the Information for Investors pursuant to § 21 AIFMG (which is comparable to the prospectus for retail UCITS), the fund terms and conditions, and the key investor document (KID) of the respective retail AIF. These can be found on the website www.erste-am.com.

Retail AIF can be sold in other countries in Europe in accordance with the respective local laws.
The registration of retail AIF for sale is subject to more stringent requirements from the supervisory authorities than retail UCITS, and also involves high costs.

The fund measure “average term to maturity” is the weighted average of the term to maturity of the bonds held by the fund.The fund measure “average term to maturity” is the weighted average of the term to maturity of the bonds held by the fund.

See Statement of accounts.

Apart from investment funds and own investments, clients may also have their securities managed by an asset manager. In this case an asset management contract detailing the investment rules and management fees is drafted. Clients’ assets are then managed directly in their deposit according to the agreed rules and without further consultation.

In the case of accumulating units the fund’s income is kept in the fund and reinvested by the fund manager. The investor thus does not receive regular annual income in the form of a distribution but participates in the increased value of the fund assets.

Asset allocation means to intentionally spread assets among various investment vehicles (e.g. bonds, shares, sight deposits), markets, industries and currencies. The aim of this type of investment strategy is to optimise a portfolio’s return and risk.

Alternative investment funds (AIFs) are funds that are not undertakings for collective investment in transferable securities (UCITS). Since July 2013 AIFs have been regulated by the Alternative Investment Fund Managers Act (AIFMG), and they are also subject to the 2011 Investment Fund Act (InvFG 2011). Examples of alternative investment funds are other special assets, special funds, real estate funds, hedge funds and private equity funds.

Absolute return denotes the performance of an asset irrespective of market cycles or a benchmark over a given period of time.

B

The best in class approach is based on a selection of the best companies within a sector. This means that investments are made in those companies that command the best ESG standards within the respective sector.