Engagement and voting

Engagement

As committed investor we try to engage in an active dialogue with the invested companies and governments within the framework of our responsibility process. We point at weak spots in the area of environmental, social, and governance criteria and then try to find a solution to improve on the status quo together with the company. Our engagement is not only a question of responsibility, but also contributes to minimising risks and can thus improve the long-term investment success of our clients. We engage with companies that the funds of the ERSTE-RESPONSIBLE family of funds invest in. In some cases we also contact companies that we are not invested in – after all, we also want to effect changes in companies that are not investable to us due to their shortcomings in the area of responsibility. We may exclude companies from our investment universe that persistently refuse to enter into a dialogue with us.

In our engagement process we follow four strategies:

  • Thematic engagement: we address ESG-relevant topics at regular intervals and report publicly on them. This way we not only ensure that our engagement remains focused, but we also increase the willingness of companies to enter into a dialogue with us. We frequently report on our topical engagement in our investment magazine ERSTE RESPONSIBLE RETURN - The ESG Letter
  • Austria engagement: as market leader in Austria we feel obliged to put a specific focus on domestic engagement activities. This is where we leverage our strong market position and reputation.
  • Engagement cooperation: we bundle our influence with other engaged investors in order to facilitate change. In doing so we often act as leader in responsibility networks such as PRI.
  • External engagement partners: we cooperate with a specialised partner, GES (Global Engagement Service). The agency bundles the capital of numerous investors who participate in order to be accepted as equal partner by the contacted company. GES is globally active and supports Erste Asset Management especially in developing countries.

Once a year we issue a detailed report on our engagement activities, together with GES.

Erste AM Engagement guideline

Erste AM Engagement & Voting Reports

Mediate Engagement via GES (Global Engagement Services)

Voting

Part of our engagement as investor is the concept of “active ownership”, i.e. the active exercising of our voting rights at the general annual meetings of companies that we are invested in. In order to ensure transparency and consistency of our voting, we have compiled a detailed guideline and frequently and publicly report on our voting behaviour on our voting portal.

 

ERSTE RESPONSIBLE RETURN - The ESGenius Letter

Our responsibility magazine ERSTE RESPONSIBLE RETURN - The ESGenius Letter discusses topics that are both controversial and up-to-date and informs about our responsible funds.

 

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Disclaimer

This material is an advertisement and serves only to provide additional information about the mutual funds managed by Erste Asset Management GmbH ("Erste AM").

Basic documents about the mutual funds are Fund rules ("Statut") and the Key Investor Information. Statutes of the Funds are submitted to the Czech National Bank in accordance with Czech law and their current versions are available at the registered office of Erste AM or on the website www.erste-am.cz.

The analyses and conclusions published in this material are of a general nature and do not take into account the personal needs of individual investors in terms of income, financial situation or risk tolerance. They are in no way investment recommendations. Any use of this information should therefore be preceded by consultation with a professional investment adviser to ensure that the planned investment is in line with the investor's needs and priorities and to inform the investor of the potential risks of the particular investment.

Where any return is mentioned in the information material, it should always be based on the principle that past returns are no guarantee of future returns. Any investment involves the risk of volatility in value and changes in exchange rates and the return on the original investment and the amount of any profit is in no way guaranteed. Past performance figures include the effect of fees, commissions and taxes associated with the management of the Fund. Only entry and exit fees related to the distribution of units, if any, are not included.

Erste AM and the managed investment funds registered in the Czech Republic are subject to the supervision of the Czech National Bank.