Raiffeisen-Asia-Opportunities-ESG-Aktien

Our equity fund Raiffeisen-Asia-Opportunities-ESG-Aktien focuses on five major themes in the emerging nations of Asia and the associated investment opportunities. The fund takes sustainability criteria into account by using our sustainable investment concept, which has been tried and tested over many years and has repeatedly won awards.

Thematic focus areas for Asia that we currently consider to be particularly promising in the long term:

• Technological change: Asian companies have become global technology leaders in many areas (e.g. digitalisation, big data, automation, smart cities) and new areas are constantly being added.

• Climate change and environmental protection: renewable energies, circular economy, recycling, etc.: Asia still has a lot of catching up to do compared to Europe when it comes to many technologies, environmental protection and sustainable business practices in general. However, many Asian countries are making great efforts to close these gaps. This means a correspondingly high potential for companies that are active in these areas.

• Health: The population in many Asian countries is not only growing but is also getting older on average. As prosperity increases, modern "diseases of civilisation" are also becoming more widespread. However, the healthcare systems in many Asian countries are still being developed or expanded. This opens up great market potential as well as and growth opportunities for companies in areas such as diagnostics, biotechnology, predictive analytics, fitness, and pharmaceuticals.

• Social and demographic change: In many Asian countries, the middle class is growing rapidly and thus the demand for consumer goods and services. This affects the areas of tourism, consumer goods manufacturing, elderly care, education and training, and property, among others.

ESG criteria for Asia's companies

The economic rise and increasing establishment as a global player allows companies in Asia, but also forces them at the same time, to increasingly address ESG issues (e.g. environment, social benefits, equality, labour conditions, good corporate governance). Doing business more responsibly is becoming increasingly important in order to strengthen one's own competitive position and future viability.

By taking ESG criteria into account within the equity selection, investors can support and promote this transition to greater sustainability.

*In order to calculate the effect of sustainable equity investments in the fund, we used the sustainability ratios of the companies found in their sustainability reporting. CO2 emissions are generally denoted in tons of carbon dioxide equivalents (CO2e), work accidents in lost-time-
injury-rate, waste in tons and water consumption in m3. The key ratios for the individual companies were multiplied by their weight in the fund or in the overall market, and the results of each key ratio were compared. Currently, we do not calculate such ratios for the bond segment of the funds, as we think that the "sustainable footprint" is attributable to the company owners, i.e. shareholders, not to the creditors, i.e. bond holders.

What you should pay particular attention to

• Investments in the fund are subject to the risks typical of equity markets (e.g. price fluctuations, currency risks). These naturally also apply to companies, that justify an investment according to ESG criteria.

• In addition to the risks generally associated with equity investments, this fund also involves increased regulatory and political risks, an often even lower level of transparency at many companies and a tendency towards less legal certainty in the respective countries.

Raiffeisen-Asia-Opportunities-ESG-Aktien exhibits elevated volatility, meaning that unit prices can move significantly higher or lower in short periods of time, and it is not possible to rule out loss of capital.