15/09/2009
Espa launches a fund of government bonds from central and eastern Europe
Erste Sparinvest (Espa) has opened subscriptions until 9 October to a target-date bond fund which will be launched on 12 October, entitled Espa New Europe Basket. The Austrian-registered fund will invest entirely in government bonds or in state-guaranteed securities from new EU member states or approved candidates for EU membership (such as Croatia and Turkey), and will retain the bonds, which must be rated at least BBB, until maturity. Espa is offering investors fixed returns of at least 5.25% per year. Espa estimates that the product is a fund “which will not cause any headaches.” The asset management firm for Erste Bank and the Austrian savings banks estimates that the economic situation and outlooks in the countries of central and eastern Europe have been subject to a much too severe treatment by the markets. The region is expected to return to positive growth in third quarter 2009, due to the benefits of EU and IMF assistance. In addition, the prospect of EU accession will cause optimism for investors in some countries. Characteristics Name ESPA NEW EUROPE BASKET 2014 ISIN Code AT0000A0EXL1 Subscription period 14/09/2009-09/10/2009 Fund launch 12/10/2009 Minimal returns on securities in the portfolio 5.75% Minimal distribution 5.25% Maturity 10/10/2014 Front-end fee 2.00% Management fee 0.50% Exit penalty 0.50%
