GB00_erste lage_E - Erste Group

Erste Bank in the top tier
of asset managers
Asset Management
The Asset Management business unit of Erste Bank pursues private and institutional banking,
the fund business and portfolio management. In mutual funds, portfolio management and insurance,
Erste Bank is the market leader in Austria.
The private banking activities focus on providing customised solutions, such as discretionary
portfolio management and institutional mutual funds. In several ways, the business with high-end
private banking customers and foundations as well as institutional investors (insurance companies,
pension funds and corporate customers) represents an especially attractive market segment:
It combines excellent earnings opportunities with relatively low risk. As of the end of 2000
the private banking activities had assets of EUR 6.54 billion under management (1999: EUR
5.67 billion). This amounts to a pronounced increase of 15.3%.
For some years now the Austrian fund industry has been enjoying exponential growth as capital
is shifting from the traditional forms of deposits (i.e. savings accounts) to investment funds.
However, business conditions for investment funds were poor in 2000: Prices of fixed-interest
securities fell due to rising interest rates, while stock markets declined in the second half of the
year.
Total assets managed by ERSTE-SPARINVEST Kapitalanlagegesellschaft m.b.H., in which Erste
Bank holds an 84.3% interest, rose in 2000 by 3.2%, from EUR 14.56 billion to EUR 15.02 billion.
This gives ERSTE-SPARINVEST Kapitalanlagegesellschaft m.b.H., which sells 140 funds, a
market share of 17.8% and makes it the third largest fund manager in Austria.
Assets under management can be broken down by retail and institutional mutual funds. Retail
mutual funds, at 57.4%, constitute well more than one-half of the total market; ERSTE-SPARIN-
VEST Kapitalanlagegesellschaft m.b.H. has a market share of 21.7%. With total fund assets of
EUR 10.53 billion, it leads the market by a wide margin.
Erste Bank’s institutional fund business grew by 11.8% last year, considerably surpassing the
market’s growth of 5.8%. Funds under management were at EUR 4.49 billion corresponding to
a market share of 12.5%.
Erste Bank further built up its position as the largest Austrian provider of international funds.
The number of funds for which Erste Bank acted as representative, paying agent and tax representative
has climbed by more than one-third to over 400 funds. Distribution agreements are in
place with about 70 international fund companies. On 1 December 2000 ERSTE-SPARINVEST
Kapitalanlagegesellschaft m.b.H. launched its collaboration with Putnam Investments of the USA,
currently the world’s fourth largest mutual fund company. Putnam Investments brings to the partnership
a history of more than 60 years in the investment business.
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