launch of new investment fund for eastern europe

TBLI Conference Europe 2008

‘ESPA VINIS STOCK EUROPEEMERGING’ -Launch of New Investment Fund forEmerging Europe

2TBLI Conference Europe 2008

CEE Overview

The ESPA VINIS STOCK EUROPE EMERGING Fund

Our SRI Methodology

Agenda

Contact Details


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


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


» 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


- 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


CEE Overview


Our SRI Methodology

Agenda

Contact Details


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


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

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Res

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SRI-T

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SPA

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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


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


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


Source: RFU, 2008

Every company is screened and rated based on a variety ofcriteriaExample for Rating Methodology


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


CEE Overview


Our SRI Methodology

Agenda

Contact Details


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


CEE Overview


Our SRI Methodology

Agenda

Contact Details


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


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


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.