VERMÖGENSMANAGEMENT 5INVEST Exclusive asset management for professional investments.
There are many ways for you to invest your money. We show you which is the best.
For a choice of five investment approaches! Your assets in professional hands. Both private and institutional investors all over the world are faced with ever more frequent and violent market volatility. This often happens unexpectedly, bringing an increased need to adjust portfolios rapidly, and calling for still greater risk diversification. Innovative, structured investment management is the order of the day. With VermögensManagement 5Invest you ll be looked after by seasoned asset managers. This structured asset management service is aimed at getting you the best that financial markets and investments around the world have to offer. Based on in-depth market assessments by the Bank Austria Private Banking team of experts, the VermögensManagement 5Invest asset management model matches your personal risk appetite with global market opportunities. You profit from Bank Austria Private Banking s experience of international capital markets, and our specialists expertise in crafting investment approaches that match clients needs. Your assets are being managed. Good asset management comes down to close monitoring of financial markets by top professionals and picking the right investments. That s what you get with VermögensManagement 5Invest, thanks to our thoroughly researched market assessments and our partnerships with our preferred investment fund partners. Market view. You gain the full benefit of our experts insights when we put your chosen investment strategy into practice. They constantly monitor and analyse domestic and international market trends, and their work generates Bank Austria Private Banking s up-to-the-minute market assessments. Our profound knowledge of asset classes, regions and currencies ensures that we make informed decisions on the selection of assets for your VermögensManagement 5Invest portfolio, and weight them correctly to suit market conditions. 4 VermögensManagement 5Invest
Fund partners. Thanks to our exclusive, long-term relationships with ten carefully selected investment fund partners, you gain from their quality and reliability, excellent references, extensive experience and high shares of the investment management market. This also gives us preferential access to new products. Our partners stand out for their wide product portfolios and outstanding expertise in given asset classes, which allow you to reap the benefits of highly innovative and attractive exclusive products. Your personal risk appetite and investment goals From conservative to progressive: you choose from five investment approaches based on different risk categories Market assessments from Bank Austria Private Banking Investment funds managed by selected partners VermögensManagement 5Invest 5
You choose, we invest. Your investment goals and risk tolerance are the measure of the right strategy for you. With VermögensManagement 5Invest, you lay down your strategy first by selecting one of the five investment approaches. So it is for you to decide what type of portfolio will suit you. From conservative to progressive, you have a choice of five different structured investment approaches, depending on your risk appetite. Your chosen investment approach binds our asset managers to clear weighting rules, and determines the asset classes that are taken into consideration as potential investments (money market, fixed income, equities and alternative investments). Most of the alternative investments relate to financial instruments such as absolute-return funds and the like, real estate securities (open-ended real estate funds or the like) or commodity securities (commodity funds, etc.). The investment approaches vary according to the mix of equities and alternative investments in the portfolio, and as a result they represent different risk categories. This investment philosophy enables you to exploit the opportunities presented by completely different asset classes and markets. VermögensManagement 5Invest is available in the reference currency EUR with a minimum investment of EUR 100,000 and in USD with a minimum investment of USD 100,000. You receive detailed reports on the current status of your portfolio. And our webportfolio service gives you an online reporting tool that lets you find out how your portfolio is doing at any time. From conservative to progressive. Investment approach Money market and fixed income (minimum maximum) Conservative 100% 0% Traditional 65 100% 0 35% Balanced 40 100% 0 60% Dynamic 20 100% 0 80% Progressive 0 100% 0 100% Equities and alternative investments (minimum maximum) 6 VermögensManagement 5Invest
Professionalism Your VermögensManagement 5Invest investment strategy is derived from our in-depth market assessments and the experience of a seasoned asset management team. Excellence Thanks to our long-term relationships with selected investment funds you reap the benefits of attractive, exclusive products and outstanding expertise. Personalisation From conservative to progressive you have a choice of five investment approaches tailored to your personal risk appetite. Convenience Save yourself the time and trouble of keeping a constant watch on the details of market movements. Our asset managers look after your interests in line with your individual investment strategy. Transparency Regular portfolio reports keep you in the picture. And transparent fees mean there are no unpleasant surprises. VermögensManagement 5Invest 7
Trust is good, transparency is better. Another advantage of VermögensManagement 5Invest is the highly transparent fee scheme. This includes a transaction fee for all capital deposited on your portfolio account. You have a choice between two arrangements for ongoing charges. Please note that fees such as the one-off transaction fee and the regular management fee reduce your returns. Transaction fee Management fees or Flat-rate fee model Performance fee model Basic rate Performance-based rate 8 VermögensManagement 5Invest
Transaction fee. The rates for transaction fees, shown below, are graduated according to the investment approach chosen. The fee is charged for every deposit of capital to be invested on your behalf. Transaction fee per investment approach. Investment approach Conservative Traditional Balanced Dynamic Progressive Transaction fee 1,00% + 20% VAT 1,50% + 20% VAT 2,00% + 20% VAT 2,50% + 20% VAT 3,00% + 20% VAT You can switch to another investment approach free of charge. Please read the paragraph entitled What you should know as an investor/important risk information on page 14 before signing a VermögensManagement 5Invest agreement. VermögensManagement 5Invest 9
Two models for management fees. With VermögensManagement 5Invest you have a choice of two fee systems: a flat-rate and a performance-based model. The fees are charged retroactively on a quarterly basis, as a percentage of the average quarterly account balance. There is a minimum annual fee of EUR 350.00 + 20% VAT. There is no charge for the VermögensManagement 5Invest portfolio account. The management fee meets all the expenses incurred in connection with your portfolio, including the management charge itself, and the safe-custody account and transaction fees. Flat-rate fee model. Here, the fee does not depend on the performance of your investments, but does vary according to the investment approach chosen. Annual flat-rate fee per investment approach Investment approach Conservative Traditional Balanced Dynamic Progressive Annual flat fee 0,70% + 20% VAT 0,95% + 20% VAT 1,20% + 20% VAT 1,45% + 20% VAT 1,70% + 20% VAT The flat-rate fee is charged retroactively on a quarterly basis, as a percentage of the average total assets under management.. 10 VermögensManagement 5Invest
Performance fee model. Unlike the above system, the performance fee model has both a base rate and a performance-based fee. The base rate is charged retroactively on a quarterly basis, as a percentage of the average total assets under management. Annual base rate per investment approach. Investment approach Conservative Traditional Balanced Dynamic Progressive Annual base rate 0,60% + 20% VAT 0,75% + 20% VAT 0,90% + 20% VAT 1,05% + 20% VAT 1,20% + 20% VAT In addition, there is a performance-based rate, calculated according to the difference between annual performance (net of fees, before tax) and a predetermined threshold performance. The latter is set at the start of each calendar year, at the 12-month Euribor as of 31 December of the previous year, plus a surcharge. This rate is adjusted annually. If the initial investment is made after the start of the year, the threshold is calculated on a pro rata basis. VermögensManagement 5Invest 11
Calculation of the performance threshold per investment approach. Performance-based rate. Investment approach Conservative Traditional Balanced Dynamic Progressive Performance threshold 12 month Euribor + 0.50% 12 month Euribor + 1.00% 12 month Euribor + 1.50% 12 month Euribor + 2.00% 12 month Euribor + 2.50% Calculation of the performance-based rate Threshold performance excess of < annual performance Threshold performance = annual performance Threshold performance > annual performance 20% of the actual over threshold performance + VAT No performance fee No performance fee The performance fee is charged retroactively on an annual basis, as a percentage of the average total assets under management. The performance rate only kicks in if overall performance (net of fees, before tax) has been in positive territory since conclusion of the agreement. If your portfolio s annual performance (net of fees, before tax) exceeds the relevant threshold performance, a fee of 20% of the difference is imposed. Please consult the relevant prospectuses for the management fees of investment funds and/or real estate funds you are invested in. With VermögensManagement 5Invest you benefit from reduced management fees that are normally only offered to institutional investors. 12 VermögensManagement 5Invest
This is how you can benefit from VermögensManagement 5Invest. Benefits at a glance. Our VermögensManagement 5Invest service is geared to your personal investment goals and risk profile, allowing you to exploit the opportunities presented by international capital markets. You have a choice between five different investment approaches based on different risk categories. When investing your capital, our asset managers have access to funds managed by our selected partners. These enable us to match specific investment strategies, and their selection is based on a structured analysis performed by the experts at Bank Austria Private Banking. You save the time and trouble of keeping a constant watch on the details of market movements. Our asset management team does the job for you, aided by Bank Austria Private Banking s international network. Your VermögensManagement 5Invest portfolio is based on our experts in-depth market assessments, and your chosen investment strategy. Our asset managers are quick on their feet, and respond proactively to shifting market situations. You can be sure that your portfolio will reflect your risk appetite and prevailing market conditions. Detailed and clear reports ensure a high level of transparency. VermögensManagement 5Invest 13
What you should know as an investor/ important risk information. Investments in high-yield securities are usually associated with increased risks. Investors may be exposed to the risks associated with certain investment and real estate fund products (liquidity, price, interest rate and credit risk, and the risk that all of the invested capital may be lost). Under the five investment approaches in the Vermögens- Management 5Invest product, investments are made in different risk categories. The higher the proportion of equities and alternative investments, the higher the risk. For further information, please refer to the brochure Investment-Related Information. Disclosure of Risk published by Bank Austria. For details, visit our website at www.bankaustria.at. The value of and return on an investment may rise or fall suddenly and substantially, and cannot be guaranteed. The performance of an investment may also be impacted by currency fluctuations. The investor may not be repaid all of the capital originally invested, which may be the case, for example, if the capital was invested only for a short time. Under certain circumstances, all the invested capital may be lost. UniCredit Bank Austria AG will manage the assets with the due diligence of a prudent businessman. Beyond this, UniCredit Bank Austria AG does not guarantee a given outcome of its asset management activities (and in particular the attainment or outperforming of any portfolio benchmark) or any asset value trend. Please read the paragraph entitled What you should know as an investor/important risk information on this page before signing a VermögensManagement 5Invest agreement. 14 VermögensManagement 5Invest
General information. This marketing brochure constitutes neither investment advice nor an investment recommendation. In particular, it is not an offer or a solicitation to buy or sell securities, or to conclude a VermögensManagement 5Invest agreement. It is for preliminary information purposes only, and is no substitute for advice taking into account individual circumstances and an investor s level of knowledge. Every capital investment involves an element of risk, which can involve the loss of all of the capital invested. The value of and return on an investment may rise or fall suddenly and substantially, and cannot be guaranteed. The performance of an investment may also be impacted by currency fluctuations. The investor may not be repaid all of the capital originally invested, which may be the case, for example, if the capital was invested only for a short time. A longer investment horizon will reduce the significance of short-term market volatility. Consequently, the minimum recommended term for Vermögens- Management 5Invest investment portfolios is five years. Your relationship manager will be pleased to advise you on selecting the investment approach best suited to your needs. This product may in Austria not be offered to, or purchased by, US citizens or persons whose domicile or tax assessment is in the US, and/or firms whose registered office is in that country. Our brochure entitled Summary of guidelines for managing conflicts of interest and for disclosure of benefits provides information on Bank Austria s principles for dealing with these issues. Your Private Banking relationship manager will be happy to provide further information on these matters. For questions on your personal tax status, we recommend consulting a tax adviser. Please note that tax treatment is dependent on your personal circumstances, which may change. VermögensManagement 5Invest 15
Contact. For further information on VermögensManagement 5Invest please contact your Private Banking relationship manager. Phone +43 (0)5 05 05-46000 Fax +43 (0)5 05 05-49293 E-mail privatebanking@unicreditgroup.at Internet privatebanking.bankaustria.at Status: December 2017 Errors and misprints excepted. This marketing brochure was produced by UniCredit Bank Austria AG, Schottengasse 6 8, 1010 Vienna (new address from the first half of 2018: Rothschildplatz 1, 1020 Vienna). xm/12.17/sk/x