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THE BANK FOR CORPORATES
30
Corporates
Selected Investkredit
investment funds
for corporates
Decline in fund
volumes
Considerable
increase in time
deposits
Growing importance
of securities investment
for corporate customers
increases in values and current interest income. On the whole, the environment for growth companies
developed rather unfavourably in 2001, which altogether resulted in a more risk-sensitive and selective
investment policy. The strategic focus will be increasingly shifted towards corporates with stable
earnings which have already reached a more advanced stage in their corporate development.
INVEST MEZZANIN expects that the further development of the mezzanine market will be
positively influenced by the growing number of management-buy-out/management-buy-in transactions
and by more risk-adequate lending policies of banks.
ASSET MANAGEMENT.
INVESTKREDIT INVESTMENT FUNDS. In order to meet the asset management requirements of its
corporate customers, Investkredit offers a selection of various Investkredit investment funds. Investment
funds suited for corporate pension schemes and low-risk floor funds clearly prove that
Investkredit’s asset management policy is tailored to corporates’ specific needs. The performance of
the Investkredit investment funds was clearly influenced by the fact that all major stock markets
ended the year with severe losses. While the floor funds were able to maintain their ground with
positive returns, among the mixed funds only the i2V-Vorsorgefonds, managed by Vontobel Asset
Management, ended the year 2001 on a positive note. The i2V-Euro and the i2V-Select were more
strongly affected by the negative development of the stock markets und thus had to accept slight losses.
The unfavourable situation on the stock markets also had an impact on the sale of investment funds.
As a result of buybacks, the total volume of Investkredit investment funds dropped from about
EUR 250 m as at the end of 2000 to EUR 190 m at the end of 2001. This fall was mainly attributable
to the floor funds i2F and i2-bond. Especially the i2F with its short-term orientation lost a great
number of investors who switched to more attractive money market investments. All mixed funds, on
the other hand, recorded an increase which totalled about EUR 9 m.
With the issue of two umbrella floor funds in the beginning of 2002, Investkredit will react to
the declining trend in this field of business. The fund of funds approach is intended to reduce the
dependence on a single fund manager and his or her performance and the related diversification in
hedging styles is to enhance continuity.
TIME DEPOSITS. Deposits of corporate customers are mainly taken in via Investkredit International
Bank p.l.c., Malta. This field of business was significantly extended in the previous year. With EUR 364 m
the volume of deposits of Austrian corporate customers accepted in 2001 could be nearly doubled
compared to the year before.
Investkredit International Bank p.l.c. in Malta had an excellent track record in 2001. With a
capital base of EUR 29 m it reported a profit of EUR 3.7 m. Even before the end of the year the bank
in Malta was able to enlarge its number of shareholders by two new (preference) shareholders and to
increase its share capital to EUR 46 m. The bank’s asset operations focus on extending loans to Austrian
corporate customers and on participating in international syndicated securities financing transactions.
The aforementioned injection of fresh capital will be used to increase the bank’s commitment in these
fields of business.
CUSTODY ACCOUNTS SERVICES. In the year 2001, the financial asset management requirements
of corporate customers were clearly influenced by the volatile market conditions. In consequence,
demand for investments involving a lower risk was stronger than in the year before. The focal
products of the year under review were investments and portfolio switching of funds to selected
bonds and investment funds with low risk profiles. At a total of EUR 2.9 bn, the volume of assets