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20.04.2018

Focus on equity consulting:
UniCredit Bank Austria and Amundi announce fight against savings losses and a lack of information

  • Austrians lost 4.7 billion euros in real terms with deposits in 2017
  • Securities in Austria achieved a profit in real terms of 3.2 billion euros in 2017
  • Lack of knowledge is the main obstacle to an investment in securities
  • Bank manager is the most important source of information on funds
  • Equity consulting in all UniCredit Bank Austria branches and via video from 100 investment specialists
  • Participate in the global economic upturn with broadly diversified funds

Both before and after the World Fund Day, UniCredit Bank Austria once again highlighted its competence in qualified investment advice in its branches and via video from 100 investment specialists. However, for UniCredit Bank Austria and their fund partner, Amundi, the topic is always in the foreground throughout the entire year. With broad diversification of assets and professional risk management, investment funds may be the right solution for many investors looking for attractive opportunities for returns.

Low-interest phase causes real losses for saving deposits
Austria’s households still have around half of their financial assets in deposits and only a quarter in securities. While securities produced an annual real return of 2.5 billion, according to calculations by UniCredit Bank Austria’s economists, deposits suffered an annual real loss of 2.6 billion between 2012 and 2017. This negative balance for saving deposits is set to become even worse in the years ahead according to today’s forecasts. For example, in 2017 the loss on deposits increased to as much as 4.7 billion, while securities produced a real profit of around 3.2 billion in 2017.

If Austria’s households had opted for a reverse ratio of deposits and securities in 2017 (i.e. 25 per cent in deposits and 50 per cent in securities), they would have been able to prevent a real loss. The losses in deposits would have amounted to just under 2.5 billion euros rather than 4.7 billion, and would have been offset by real gains in securities of 6.4 billion euros. It should be noted that no predictions can be derived about the future development of securities, that price fluctuations can occur at any time and in any case a long-term investment horizon is needed.

Markus Kosche, Head of Retail Sales Private Customers, Small Business and Independent Professions at UniCredit Bank Austria, stressed: “The golden age for savers is over and will not return for some time. Whereas in 1990 with annual savings interest of 7 to 8 per cent, it took around just under 12 years to double your savings, it would now take approximately 400 years.” Werner Kretschmer, CEO of Amundi Austria, added: “Savings deposits on the one hand do indeed offer high security. As inflation is higher than the level of interest rates, however, the value of the savings becomes lower and lower. This means that savings lose purchasing power. And little will change in this regard in the near future.”

Lack of knowledge is currently standing in the way of a fund boom
In contrast to the international trend, in the previous year, Austrians invested three times more money in overnight deposits than in funds. According to an Integral survey (online, survey of 500 people between the ages of 16 and 69) on behalf of the fund associations VÖIG and VAIÖ, that is primarily down to a lack of knowledge among Austrians about funds. Some 69 per cent of the respondents stated that a lack of knowledge about the nature of funds, followed by “too little capital” (45 per cent) and “too high risk” (41 per cent) would discourage them from purchasing units in funds. “We want to counteract this with explanations and hard facts to create the best possible investment for our customers’ capital,” explained Markus Kosche.

Investment funds – transparent and flexible
“Especially in the current situation, investment funds with their diversified investment strategies can offer particularly interesting prospects – to everyone from retail clients to institutional investors,” said Werner Kretschmer. “Through a broad diversification, funds with different characteristics are able to reduce risks and provide offers such as ‘securities savings’ – after an initial deposit you can decide yourself how much and how often you want to put your savings in a fund with a standing order – providing access to the international markets even with limited funds.”

“In addition, with funds it is possible to adapt to clients’ circumstances and investment objectives in a much more personalised manner,” said Kosche. “To this end, we prepare a personal investment strategy, which is tailored entirely to the different individual investment wishes and objectives. We highlight potential improvements for cash investments and recommend alternative investment opportunities to our customers in the current environment of low interest rates and geopolitical challenges.”

Kretschmer stated “that everyone can be offered an individually coordinated investment, from rather risk-averse customers, through investors who participate in the global development of capital markets through broadly diversified funds of funds, to people with greater risk tolerance, who are looking to participate in megatrends with the equity funds, such as thematic funds like the CPR Invest – Global Silver Age.”

Such extensive customisation requires professional advice. “For this reason, we invite all potential investors to visit us in our branches and to get non-binding advice there either in person or via a video call from one of our 100 investment specialists completely free of charge,” Markus Kosche emphasised in conclusion.

Enquiries:
Bank Austria Media Relations
Volker Moser, Tel. +43 (0) 50505-52854
Email: volker.moser@unicreditgroup.at

Amundi
Andreas Nurscher; Tel.+43 (0)1 33173-2202
Email: andreas.nurscher@amundi.com

The published prospectus and the customer information documents (KID) and/or information for investors pursuant to Section 21 of the Alternative Investment Funds Manager Act (“AIFMG”) for all of the investment funds offered to the public by the Amundi Group in Austria, as amended, are available to interested parties in German or English, free of charge at www.amundi.at.

This is a marketing communication. The contents of this document do not constitute an offer, a recommendation to buy or sell or an investment analysis. They are particularly not intended to replace individual investment advice or other consulting. Each specific investment should be made only after a consultation. Past performance is not a reliable indicator of the future performance of investment funds, indices or markets.