Welcome to the 9th CEE Summit - clearstream.com · The Scale of CEE Markets –Market Cap to GDP 0...
63
Welcome to the 9 th CEE Summit 18 and 19 April 2013 Prague, Czech Republic 1
Transcript of Welcome to the 9th CEE Summit - clearstream.com · The Scale of CEE Markets –Market Cap to GDP 0...
Welcome to the
9th CEE Summit18 and 19 April 2013Prague Czech Republic
1
2
3
Why CEE
Tomasz GrajewskiGlobal Head GSSUnicredit
5
Agenda
nThe scale of the CEE region
nThe attractions of the CEE region
nThe special features of the CEE region
n The custodian perspective of the CEE
nA vision for the future
6
The Scale of the CEE Regionndash GDP comparison
0100200300400
GDP (EUR b)
010203040
GDP per capita (EUR k)
Source UniCredit CEE Quarterly
The potential for growth is material these are largely emerging and frontier markets
7
0500
10001500200025003000
GDP (EUR b)
010203040
GDP per capita (EUR k)
Source UniCredit CEE Quarterly and UniCredit Economics Research
The Scale of the CEE Region ndash GDP in further context
The gap in GDP per capita is a good indicator of the potential of even the regional ldquotigersrdquo
8
The Scale of the CEE Region ndash Stock Market Size
0100200300400500600700800
Stock market size (EUR billion) versus market capitalization of major global corporates
Source WFSE and FT
9
The Scale of CEE Markets ndash Market Cap to GDP
020406080
100120140160180
Domestic market cap as of GDP
Source WFSE and Unicredit Economics Research
10
The Scale of the CEE Markets
020406080
100120140160
Cap (EUR billions)600
11
The Scale of CEE Markets (Feb turnover EUR)
0
20
40
60
80
100
120
140
160Smaller markets - EUR millions
600
05
101520
Larger markets- EUR billions
12
The Attractions of the CEE Markets
nBest regional economic growth rates
nExporting economies
nCEE adhesion and impact
nIPOrsquos in the future
nGrowing local investor bases
nInfrastructure evolutionary trends
But Very Dependenton EU economies
13
The Attractions of the CEE Region- Economic Growth Ratesn Poor 2012 performance but GDP growth forecast generally ahead of EU average
-3-2-1012345
Austria Czech Hungary Poland Russia Croatia
2011 2012 2013
Source UniCredit CEE Quarterly and Unicredit Economic Research
14
The Attractions of the CEE Region ndash Exporting Economiesn EU is the target of much of exports region still tied
to EU economic performancen Exports are on average 65 of GDP in CEE or CEE
aspirant emerging and frontier markets countries
020406080
100ExportsGDP
Source UniCredit CEE Quarterly
15
The Attractions of the CEE Region ndash CEE adhesion and its impactn EU is a market of 500 mio people ndash 10 CEE countries who
are EU membersaspirants have a population of 110 mio
n EU development and other funds are key drivers for growth
n Euro participation is an emerging issue with currently AT SK and SI being in countries but others plan to join ldquoin the futurerdquo
n And in the securities world harmonisation infrastructure convergence and common regulation are prevailing trends
n The MSI all country index includes AT (developed) RU PL CZ and HU (emerging) from the CEE with most others still classified as ldquofrontierrdquo
16
And the T2S development is attracting both Euro and non Euro markets and is a major enterprise
Austria
Slovakia
Slovenia
Hungary
Romania
Rebuilding platform project plan being implemented details shared with users currently scheduled for phase 3 release
T2S on top of infrastructure total redesign of IT architecture will retain many local unique features currently scheduled for phase 2 release
T2S on top of current architecture upgraded two years ago middleware decision to be made 2Q2013 currently scheduled for phase 3 release
T2S on top of current infrastructure RFP out to allow tender for major market IT re-engineering T2S to cover EUR settlement only (not Florint) currently scheduled for phase 3 release
T2S on top of current infrastructure some enhancements to be adopted T2S to cover EUR settlement only (not Leu) currently scheduled for phase 1 release
17
The Attractions of the CEE Region - IPOrsquos nThe region is moving from state managed to market economies
nWe expect a greater number of new IPOs ndash on averagemarkets could increase market cap by 100 to reach world ldquonormsrdquo
n Some of the IPOrsquos could be substantial (On the WSE in 2011 there were 16 foreign issuers listed of which 12 on the main list)
n Align this with above average GDP growth and a more friendly global environment and market capitalisations could well rise dramatically
nThe region is still complex change is country centric and local knowledge and involvement is key to managing the process
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
2
3
Why CEE
Tomasz GrajewskiGlobal Head GSSUnicredit
5
Agenda
nThe scale of the CEE region
nThe attractions of the CEE region
nThe special features of the CEE region
n The custodian perspective of the CEE
nA vision for the future
6
The Scale of the CEE Regionndash GDP comparison
0100200300400
GDP (EUR b)
010203040
GDP per capita (EUR k)
Source UniCredit CEE Quarterly
The potential for growth is material these are largely emerging and frontier markets
7
0500
10001500200025003000
GDP (EUR b)
010203040
GDP per capita (EUR k)
Source UniCredit CEE Quarterly and UniCredit Economics Research
The Scale of the CEE Region ndash GDP in further context
The gap in GDP per capita is a good indicator of the potential of even the regional ldquotigersrdquo
8
The Scale of the CEE Region ndash Stock Market Size
0100200300400500600700800
Stock market size (EUR billion) versus market capitalization of major global corporates
Source WFSE and FT
9
The Scale of CEE Markets ndash Market Cap to GDP
020406080
100120140160180
Domestic market cap as of GDP
Source WFSE and Unicredit Economics Research
10
The Scale of the CEE Markets
020406080
100120140160
Cap (EUR billions)600
11
The Scale of CEE Markets (Feb turnover EUR)
0
20
40
60
80
100
120
140
160Smaller markets - EUR millions
600
05
101520
Larger markets- EUR billions
12
The Attractions of the CEE Markets
nBest regional economic growth rates
nExporting economies
nCEE adhesion and impact
nIPOrsquos in the future
nGrowing local investor bases
nInfrastructure evolutionary trends
But Very Dependenton EU economies
13
The Attractions of the CEE Region- Economic Growth Ratesn Poor 2012 performance but GDP growth forecast generally ahead of EU average
-3-2-1012345
Austria Czech Hungary Poland Russia Croatia
2011 2012 2013
Source UniCredit CEE Quarterly and Unicredit Economic Research
14
The Attractions of the CEE Region ndash Exporting Economiesn EU is the target of much of exports region still tied
to EU economic performancen Exports are on average 65 of GDP in CEE or CEE
aspirant emerging and frontier markets countries
020406080
100ExportsGDP
Source UniCredit CEE Quarterly
15
The Attractions of the CEE Region ndash CEE adhesion and its impactn EU is a market of 500 mio people ndash 10 CEE countries who
are EU membersaspirants have a population of 110 mio
n EU development and other funds are key drivers for growth
n Euro participation is an emerging issue with currently AT SK and SI being in countries but others plan to join ldquoin the futurerdquo
n And in the securities world harmonisation infrastructure convergence and common regulation are prevailing trends
n The MSI all country index includes AT (developed) RU PL CZ and HU (emerging) from the CEE with most others still classified as ldquofrontierrdquo
16
And the T2S development is attracting both Euro and non Euro markets and is a major enterprise
Austria
Slovakia
Slovenia
Hungary
Romania
Rebuilding platform project plan being implemented details shared with users currently scheduled for phase 3 release
T2S on top of infrastructure total redesign of IT architecture will retain many local unique features currently scheduled for phase 2 release
T2S on top of current architecture upgraded two years ago middleware decision to be made 2Q2013 currently scheduled for phase 3 release
T2S on top of current infrastructure RFP out to allow tender for major market IT re-engineering T2S to cover EUR settlement only (not Florint) currently scheduled for phase 3 release
T2S on top of current infrastructure some enhancements to be adopted T2S to cover EUR settlement only (not Leu) currently scheduled for phase 1 release
17
The Attractions of the CEE Region - IPOrsquos nThe region is moving from state managed to market economies
nWe expect a greater number of new IPOs ndash on averagemarkets could increase market cap by 100 to reach world ldquonormsrdquo
n Some of the IPOrsquos could be substantial (On the WSE in 2011 there were 16 foreign issuers listed of which 12 on the main list)
n Align this with above average GDP growth and a more friendly global environment and market capitalisations could well rise dramatically
nThe region is still complex change is country centric and local knowledge and involvement is key to managing the process
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
3
Why CEE
Tomasz GrajewskiGlobal Head GSSUnicredit
5
Agenda
nThe scale of the CEE region
nThe attractions of the CEE region
nThe special features of the CEE region
n The custodian perspective of the CEE
nA vision for the future
6
The Scale of the CEE Regionndash GDP comparison
0100200300400
GDP (EUR b)
010203040
GDP per capita (EUR k)
Source UniCredit CEE Quarterly
The potential for growth is material these are largely emerging and frontier markets
7
0500
10001500200025003000
GDP (EUR b)
010203040
GDP per capita (EUR k)
Source UniCredit CEE Quarterly and UniCredit Economics Research
The Scale of the CEE Region ndash GDP in further context
The gap in GDP per capita is a good indicator of the potential of even the regional ldquotigersrdquo
8
The Scale of the CEE Region ndash Stock Market Size
0100200300400500600700800
Stock market size (EUR billion) versus market capitalization of major global corporates
Source WFSE and FT
9
The Scale of CEE Markets ndash Market Cap to GDP
020406080
100120140160180
Domestic market cap as of GDP
Source WFSE and Unicredit Economics Research
10
The Scale of the CEE Markets
020406080
100120140160
Cap (EUR billions)600
11
The Scale of CEE Markets (Feb turnover EUR)
0
20
40
60
80
100
120
140
160Smaller markets - EUR millions
600
05
101520
Larger markets- EUR billions
12
The Attractions of the CEE Markets
nBest regional economic growth rates
nExporting economies
nCEE adhesion and impact
nIPOrsquos in the future
nGrowing local investor bases
nInfrastructure evolutionary trends
But Very Dependenton EU economies
13
The Attractions of the CEE Region- Economic Growth Ratesn Poor 2012 performance but GDP growth forecast generally ahead of EU average
-3-2-1012345
Austria Czech Hungary Poland Russia Croatia
2011 2012 2013
Source UniCredit CEE Quarterly and Unicredit Economic Research
14
The Attractions of the CEE Region ndash Exporting Economiesn EU is the target of much of exports region still tied
to EU economic performancen Exports are on average 65 of GDP in CEE or CEE
aspirant emerging and frontier markets countries
020406080
100ExportsGDP
Source UniCredit CEE Quarterly
15
The Attractions of the CEE Region ndash CEE adhesion and its impactn EU is a market of 500 mio people ndash 10 CEE countries who
are EU membersaspirants have a population of 110 mio
n EU development and other funds are key drivers for growth
n Euro participation is an emerging issue with currently AT SK and SI being in countries but others plan to join ldquoin the futurerdquo
n And in the securities world harmonisation infrastructure convergence and common regulation are prevailing trends
n The MSI all country index includes AT (developed) RU PL CZ and HU (emerging) from the CEE with most others still classified as ldquofrontierrdquo
16
And the T2S development is attracting both Euro and non Euro markets and is a major enterprise
Austria
Slovakia
Slovenia
Hungary
Romania
Rebuilding platform project plan being implemented details shared with users currently scheduled for phase 3 release
T2S on top of infrastructure total redesign of IT architecture will retain many local unique features currently scheduled for phase 2 release
T2S on top of current architecture upgraded two years ago middleware decision to be made 2Q2013 currently scheduled for phase 3 release
T2S on top of current infrastructure RFP out to allow tender for major market IT re-engineering T2S to cover EUR settlement only (not Florint) currently scheduled for phase 3 release
T2S on top of current infrastructure some enhancements to be adopted T2S to cover EUR settlement only (not Leu) currently scheduled for phase 1 release
17
The Attractions of the CEE Region - IPOrsquos nThe region is moving from state managed to market economies
nWe expect a greater number of new IPOs ndash on averagemarkets could increase market cap by 100 to reach world ldquonormsrdquo
n Some of the IPOrsquos could be substantial (On the WSE in 2011 there were 16 foreign issuers listed of which 12 on the main list)
n Align this with above average GDP growth and a more friendly global environment and market capitalisations could well rise dramatically
nThe region is still complex change is country centric and local knowledge and involvement is key to managing the process
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Why CEE
Tomasz GrajewskiGlobal Head GSSUnicredit
5
Agenda
nThe scale of the CEE region
nThe attractions of the CEE region
nThe special features of the CEE region
n The custodian perspective of the CEE
nA vision for the future
6
The Scale of the CEE Regionndash GDP comparison
0100200300400
GDP (EUR b)
010203040
GDP per capita (EUR k)
Source UniCredit CEE Quarterly
The potential for growth is material these are largely emerging and frontier markets
7
0500
10001500200025003000
GDP (EUR b)
010203040
GDP per capita (EUR k)
Source UniCredit CEE Quarterly and UniCredit Economics Research
The Scale of the CEE Region ndash GDP in further context
The gap in GDP per capita is a good indicator of the potential of even the regional ldquotigersrdquo
8
The Scale of the CEE Region ndash Stock Market Size
0100200300400500600700800
Stock market size (EUR billion) versus market capitalization of major global corporates
Source WFSE and FT
9
The Scale of CEE Markets ndash Market Cap to GDP
020406080
100120140160180
Domestic market cap as of GDP
Source WFSE and Unicredit Economics Research
10
The Scale of the CEE Markets
020406080
100120140160
Cap (EUR billions)600
11
The Scale of CEE Markets (Feb turnover EUR)
0
20
40
60
80
100
120
140
160Smaller markets - EUR millions
600
05
101520
Larger markets- EUR billions
12
The Attractions of the CEE Markets
nBest regional economic growth rates
nExporting economies
nCEE adhesion and impact
nIPOrsquos in the future
nGrowing local investor bases
nInfrastructure evolutionary trends
But Very Dependenton EU economies
13
The Attractions of the CEE Region- Economic Growth Ratesn Poor 2012 performance but GDP growth forecast generally ahead of EU average
-3-2-1012345
Austria Czech Hungary Poland Russia Croatia
2011 2012 2013
Source UniCredit CEE Quarterly and Unicredit Economic Research
14
The Attractions of the CEE Region ndash Exporting Economiesn EU is the target of much of exports region still tied
to EU economic performancen Exports are on average 65 of GDP in CEE or CEE
aspirant emerging and frontier markets countries
020406080
100ExportsGDP
Source UniCredit CEE Quarterly
15
The Attractions of the CEE Region ndash CEE adhesion and its impactn EU is a market of 500 mio people ndash 10 CEE countries who
are EU membersaspirants have a population of 110 mio
n EU development and other funds are key drivers for growth
n Euro participation is an emerging issue with currently AT SK and SI being in countries but others plan to join ldquoin the futurerdquo
n And in the securities world harmonisation infrastructure convergence and common regulation are prevailing trends
n The MSI all country index includes AT (developed) RU PL CZ and HU (emerging) from the CEE with most others still classified as ldquofrontierrdquo
16
And the T2S development is attracting both Euro and non Euro markets and is a major enterprise
Austria
Slovakia
Slovenia
Hungary
Romania
Rebuilding platform project plan being implemented details shared with users currently scheduled for phase 3 release
T2S on top of infrastructure total redesign of IT architecture will retain many local unique features currently scheduled for phase 2 release
T2S on top of current architecture upgraded two years ago middleware decision to be made 2Q2013 currently scheduled for phase 3 release
T2S on top of current infrastructure RFP out to allow tender for major market IT re-engineering T2S to cover EUR settlement only (not Florint) currently scheduled for phase 3 release
T2S on top of current infrastructure some enhancements to be adopted T2S to cover EUR settlement only (not Leu) currently scheduled for phase 1 release
17
The Attractions of the CEE Region - IPOrsquos nThe region is moving from state managed to market economies
nWe expect a greater number of new IPOs ndash on averagemarkets could increase market cap by 100 to reach world ldquonormsrdquo
n Some of the IPOrsquos could be substantial (On the WSE in 2011 there were 16 foreign issuers listed of which 12 on the main list)
n Align this with above average GDP growth and a more friendly global environment and market capitalisations could well rise dramatically
nThe region is still complex change is country centric and local knowledge and involvement is key to managing the process
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
5
Agenda
nThe scale of the CEE region
nThe attractions of the CEE region
nThe special features of the CEE region
n The custodian perspective of the CEE
nA vision for the future
6
The Scale of the CEE Regionndash GDP comparison
0100200300400
GDP (EUR b)
010203040
GDP per capita (EUR k)
Source UniCredit CEE Quarterly
The potential for growth is material these are largely emerging and frontier markets
7
0500
10001500200025003000
GDP (EUR b)
010203040
GDP per capita (EUR k)
Source UniCredit CEE Quarterly and UniCredit Economics Research
The Scale of the CEE Region ndash GDP in further context
The gap in GDP per capita is a good indicator of the potential of even the regional ldquotigersrdquo
8
The Scale of the CEE Region ndash Stock Market Size
0100200300400500600700800
Stock market size (EUR billion) versus market capitalization of major global corporates
Source WFSE and FT
9
The Scale of CEE Markets ndash Market Cap to GDP
020406080
100120140160180
Domestic market cap as of GDP
Source WFSE and Unicredit Economics Research
10
The Scale of the CEE Markets
020406080
100120140160
Cap (EUR billions)600
11
The Scale of CEE Markets (Feb turnover EUR)
0
20
40
60
80
100
120
140
160Smaller markets - EUR millions
600
05
101520
Larger markets- EUR billions
12
The Attractions of the CEE Markets
nBest regional economic growth rates
nExporting economies
nCEE adhesion and impact
nIPOrsquos in the future
nGrowing local investor bases
nInfrastructure evolutionary trends
But Very Dependenton EU economies
13
The Attractions of the CEE Region- Economic Growth Ratesn Poor 2012 performance but GDP growth forecast generally ahead of EU average
-3-2-1012345
Austria Czech Hungary Poland Russia Croatia
2011 2012 2013
Source UniCredit CEE Quarterly and Unicredit Economic Research
14
The Attractions of the CEE Region ndash Exporting Economiesn EU is the target of much of exports region still tied
to EU economic performancen Exports are on average 65 of GDP in CEE or CEE
aspirant emerging and frontier markets countries
020406080
100ExportsGDP
Source UniCredit CEE Quarterly
15
The Attractions of the CEE Region ndash CEE adhesion and its impactn EU is a market of 500 mio people ndash 10 CEE countries who
are EU membersaspirants have a population of 110 mio
n EU development and other funds are key drivers for growth
n Euro participation is an emerging issue with currently AT SK and SI being in countries but others plan to join ldquoin the futurerdquo
n And in the securities world harmonisation infrastructure convergence and common regulation are prevailing trends
n The MSI all country index includes AT (developed) RU PL CZ and HU (emerging) from the CEE with most others still classified as ldquofrontierrdquo
16
And the T2S development is attracting both Euro and non Euro markets and is a major enterprise
Austria
Slovakia
Slovenia
Hungary
Romania
Rebuilding platform project plan being implemented details shared with users currently scheduled for phase 3 release
T2S on top of infrastructure total redesign of IT architecture will retain many local unique features currently scheduled for phase 2 release
T2S on top of current architecture upgraded two years ago middleware decision to be made 2Q2013 currently scheduled for phase 3 release
T2S on top of current infrastructure RFP out to allow tender for major market IT re-engineering T2S to cover EUR settlement only (not Florint) currently scheduled for phase 3 release
T2S on top of current infrastructure some enhancements to be adopted T2S to cover EUR settlement only (not Leu) currently scheduled for phase 1 release
17
The Attractions of the CEE Region - IPOrsquos nThe region is moving from state managed to market economies
nWe expect a greater number of new IPOs ndash on averagemarkets could increase market cap by 100 to reach world ldquonormsrdquo
n Some of the IPOrsquos could be substantial (On the WSE in 2011 there were 16 foreign issuers listed of which 12 on the main list)
n Align this with above average GDP growth and a more friendly global environment and market capitalisations could well rise dramatically
nThe region is still complex change is country centric and local knowledge and involvement is key to managing the process
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
6
The Scale of the CEE Regionndash GDP comparison
0100200300400
GDP (EUR b)
010203040
GDP per capita (EUR k)
Source UniCredit CEE Quarterly
The potential for growth is material these are largely emerging and frontier markets
7
0500
10001500200025003000
GDP (EUR b)
010203040
GDP per capita (EUR k)
Source UniCredit CEE Quarterly and UniCredit Economics Research
The Scale of the CEE Region ndash GDP in further context
The gap in GDP per capita is a good indicator of the potential of even the regional ldquotigersrdquo
8
The Scale of the CEE Region ndash Stock Market Size
0100200300400500600700800
Stock market size (EUR billion) versus market capitalization of major global corporates
Source WFSE and FT
9
The Scale of CEE Markets ndash Market Cap to GDP
020406080
100120140160180
Domestic market cap as of GDP
Source WFSE and Unicredit Economics Research
10
The Scale of the CEE Markets
020406080
100120140160
Cap (EUR billions)600
11
The Scale of CEE Markets (Feb turnover EUR)
0
20
40
60
80
100
120
140
160Smaller markets - EUR millions
600
05
101520
Larger markets- EUR billions
12
The Attractions of the CEE Markets
nBest regional economic growth rates
nExporting economies
nCEE adhesion and impact
nIPOrsquos in the future
nGrowing local investor bases
nInfrastructure evolutionary trends
But Very Dependenton EU economies
13
The Attractions of the CEE Region- Economic Growth Ratesn Poor 2012 performance but GDP growth forecast generally ahead of EU average
-3-2-1012345
Austria Czech Hungary Poland Russia Croatia
2011 2012 2013
Source UniCredit CEE Quarterly and Unicredit Economic Research
14
The Attractions of the CEE Region ndash Exporting Economiesn EU is the target of much of exports region still tied
to EU economic performancen Exports are on average 65 of GDP in CEE or CEE
aspirant emerging and frontier markets countries
020406080
100ExportsGDP
Source UniCredit CEE Quarterly
15
The Attractions of the CEE Region ndash CEE adhesion and its impactn EU is a market of 500 mio people ndash 10 CEE countries who
are EU membersaspirants have a population of 110 mio
n EU development and other funds are key drivers for growth
n Euro participation is an emerging issue with currently AT SK and SI being in countries but others plan to join ldquoin the futurerdquo
n And in the securities world harmonisation infrastructure convergence and common regulation are prevailing trends
n The MSI all country index includes AT (developed) RU PL CZ and HU (emerging) from the CEE with most others still classified as ldquofrontierrdquo
16
And the T2S development is attracting both Euro and non Euro markets and is a major enterprise
Austria
Slovakia
Slovenia
Hungary
Romania
Rebuilding platform project plan being implemented details shared with users currently scheduled for phase 3 release
T2S on top of infrastructure total redesign of IT architecture will retain many local unique features currently scheduled for phase 2 release
T2S on top of current architecture upgraded two years ago middleware decision to be made 2Q2013 currently scheduled for phase 3 release
T2S on top of current infrastructure RFP out to allow tender for major market IT re-engineering T2S to cover EUR settlement only (not Florint) currently scheduled for phase 3 release
T2S on top of current infrastructure some enhancements to be adopted T2S to cover EUR settlement only (not Leu) currently scheduled for phase 1 release
17
The Attractions of the CEE Region - IPOrsquos nThe region is moving from state managed to market economies
nWe expect a greater number of new IPOs ndash on averagemarkets could increase market cap by 100 to reach world ldquonormsrdquo
n Some of the IPOrsquos could be substantial (On the WSE in 2011 there were 16 foreign issuers listed of which 12 on the main list)
n Align this with above average GDP growth and a more friendly global environment and market capitalisations could well rise dramatically
nThe region is still complex change is country centric and local knowledge and involvement is key to managing the process
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
7
0500
10001500200025003000
GDP (EUR b)
010203040
GDP per capita (EUR k)
Source UniCredit CEE Quarterly and UniCredit Economics Research
The Scale of the CEE Region ndash GDP in further context
The gap in GDP per capita is a good indicator of the potential of even the regional ldquotigersrdquo
8
The Scale of the CEE Region ndash Stock Market Size
0100200300400500600700800
Stock market size (EUR billion) versus market capitalization of major global corporates
Source WFSE and FT
9
The Scale of CEE Markets ndash Market Cap to GDP
020406080
100120140160180
Domestic market cap as of GDP
Source WFSE and Unicredit Economics Research
10
The Scale of the CEE Markets
020406080
100120140160
Cap (EUR billions)600
11
The Scale of CEE Markets (Feb turnover EUR)
0
20
40
60
80
100
120
140
160Smaller markets - EUR millions
600
05
101520
Larger markets- EUR billions
12
The Attractions of the CEE Markets
nBest regional economic growth rates
nExporting economies
nCEE adhesion and impact
nIPOrsquos in the future
nGrowing local investor bases
nInfrastructure evolutionary trends
But Very Dependenton EU economies
13
The Attractions of the CEE Region- Economic Growth Ratesn Poor 2012 performance but GDP growth forecast generally ahead of EU average
-3-2-1012345
Austria Czech Hungary Poland Russia Croatia
2011 2012 2013
Source UniCredit CEE Quarterly and Unicredit Economic Research
14
The Attractions of the CEE Region ndash Exporting Economiesn EU is the target of much of exports region still tied
to EU economic performancen Exports are on average 65 of GDP in CEE or CEE
aspirant emerging and frontier markets countries
020406080
100ExportsGDP
Source UniCredit CEE Quarterly
15
The Attractions of the CEE Region ndash CEE adhesion and its impactn EU is a market of 500 mio people ndash 10 CEE countries who
are EU membersaspirants have a population of 110 mio
n EU development and other funds are key drivers for growth
n Euro participation is an emerging issue with currently AT SK and SI being in countries but others plan to join ldquoin the futurerdquo
n And in the securities world harmonisation infrastructure convergence and common regulation are prevailing trends
n The MSI all country index includes AT (developed) RU PL CZ and HU (emerging) from the CEE with most others still classified as ldquofrontierrdquo
16
And the T2S development is attracting both Euro and non Euro markets and is a major enterprise
Austria
Slovakia
Slovenia
Hungary
Romania
Rebuilding platform project plan being implemented details shared with users currently scheduled for phase 3 release
T2S on top of infrastructure total redesign of IT architecture will retain many local unique features currently scheduled for phase 2 release
T2S on top of current architecture upgraded two years ago middleware decision to be made 2Q2013 currently scheduled for phase 3 release
T2S on top of current infrastructure RFP out to allow tender for major market IT re-engineering T2S to cover EUR settlement only (not Florint) currently scheduled for phase 3 release
T2S on top of current infrastructure some enhancements to be adopted T2S to cover EUR settlement only (not Leu) currently scheduled for phase 1 release
17
The Attractions of the CEE Region - IPOrsquos nThe region is moving from state managed to market economies
nWe expect a greater number of new IPOs ndash on averagemarkets could increase market cap by 100 to reach world ldquonormsrdquo
n Some of the IPOrsquos could be substantial (On the WSE in 2011 there were 16 foreign issuers listed of which 12 on the main list)
n Align this with above average GDP growth and a more friendly global environment and market capitalisations could well rise dramatically
nThe region is still complex change is country centric and local knowledge and involvement is key to managing the process
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
8
The Scale of the CEE Region ndash Stock Market Size
0100200300400500600700800
Stock market size (EUR billion) versus market capitalization of major global corporates
Source WFSE and FT
9
The Scale of CEE Markets ndash Market Cap to GDP
020406080
100120140160180
Domestic market cap as of GDP
Source WFSE and Unicredit Economics Research
10
The Scale of the CEE Markets
020406080
100120140160
Cap (EUR billions)600
11
The Scale of CEE Markets (Feb turnover EUR)
0
20
40
60
80
100
120
140
160Smaller markets - EUR millions
600
05
101520
Larger markets- EUR billions
12
The Attractions of the CEE Markets
nBest regional economic growth rates
nExporting economies
nCEE adhesion and impact
nIPOrsquos in the future
nGrowing local investor bases
nInfrastructure evolutionary trends
But Very Dependenton EU economies
13
The Attractions of the CEE Region- Economic Growth Ratesn Poor 2012 performance but GDP growth forecast generally ahead of EU average
-3-2-1012345
Austria Czech Hungary Poland Russia Croatia
2011 2012 2013
Source UniCredit CEE Quarterly and Unicredit Economic Research
14
The Attractions of the CEE Region ndash Exporting Economiesn EU is the target of much of exports region still tied
to EU economic performancen Exports are on average 65 of GDP in CEE or CEE
aspirant emerging and frontier markets countries
020406080
100ExportsGDP
Source UniCredit CEE Quarterly
15
The Attractions of the CEE Region ndash CEE adhesion and its impactn EU is a market of 500 mio people ndash 10 CEE countries who
are EU membersaspirants have a population of 110 mio
n EU development and other funds are key drivers for growth
n Euro participation is an emerging issue with currently AT SK and SI being in countries but others plan to join ldquoin the futurerdquo
n And in the securities world harmonisation infrastructure convergence and common regulation are prevailing trends
n The MSI all country index includes AT (developed) RU PL CZ and HU (emerging) from the CEE with most others still classified as ldquofrontierrdquo
16
And the T2S development is attracting both Euro and non Euro markets and is a major enterprise
Austria
Slovakia
Slovenia
Hungary
Romania
Rebuilding platform project plan being implemented details shared with users currently scheduled for phase 3 release
T2S on top of infrastructure total redesign of IT architecture will retain many local unique features currently scheduled for phase 2 release
T2S on top of current architecture upgraded two years ago middleware decision to be made 2Q2013 currently scheduled for phase 3 release
T2S on top of current infrastructure RFP out to allow tender for major market IT re-engineering T2S to cover EUR settlement only (not Florint) currently scheduled for phase 3 release
T2S on top of current infrastructure some enhancements to be adopted T2S to cover EUR settlement only (not Leu) currently scheduled for phase 1 release
17
The Attractions of the CEE Region - IPOrsquos nThe region is moving from state managed to market economies
nWe expect a greater number of new IPOs ndash on averagemarkets could increase market cap by 100 to reach world ldquonormsrdquo
n Some of the IPOrsquos could be substantial (On the WSE in 2011 there were 16 foreign issuers listed of which 12 on the main list)
n Align this with above average GDP growth and a more friendly global environment and market capitalisations could well rise dramatically
nThe region is still complex change is country centric and local knowledge and involvement is key to managing the process
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
9
The Scale of CEE Markets ndash Market Cap to GDP
020406080
100120140160180
Domestic market cap as of GDP
Source WFSE and Unicredit Economics Research
10
The Scale of the CEE Markets
020406080
100120140160
Cap (EUR billions)600
11
The Scale of CEE Markets (Feb turnover EUR)
0
20
40
60
80
100
120
140
160Smaller markets - EUR millions
600
05
101520
Larger markets- EUR billions
12
The Attractions of the CEE Markets
nBest regional economic growth rates
nExporting economies
nCEE adhesion and impact
nIPOrsquos in the future
nGrowing local investor bases
nInfrastructure evolutionary trends
But Very Dependenton EU economies
13
The Attractions of the CEE Region- Economic Growth Ratesn Poor 2012 performance but GDP growth forecast generally ahead of EU average
-3-2-1012345
Austria Czech Hungary Poland Russia Croatia
2011 2012 2013
Source UniCredit CEE Quarterly and Unicredit Economic Research
14
The Attractions of the CEE Region ndash Exporting Economiesn EU is the target of much of exports region still tied
to EU economic performancen Exports are on average 65 of GDP in CEE or CEE
aspirant emerging and frontier markets countries
020406080
100ExportsGDP
Source UniCredit CEE Quarterly
15
The Attractions of the CEE Region ndash CEE adhesion and its impactn EU is a market of 500 mio people ndash 10 CEE countries who
are EU membersaspirants have a population of 110 mio
n EU development and other funds are key drivers for growth
n Euro participation is an emerging issue with currently AT SK and SI being in countries but others plan to join ldquoin the futurerdquo
n And in the securities world harmonisation infrastructure convergence and common regulation are prevailing trends
n The MSI all country index includes AT (developed) RU PL CZ and HU (emerging) from the CEE with most others still classified as ldquofrontierrdquo
16
And the T2S development is attracting both Euro and non Euro markets and is a major enterprise
Austria
Slovakia
Slovenia
Hungary
Romania
Rebuilding platform project plan being implemented details shared with users currently scheduled for phase 3 release
T2S on top of infrastructure total redesign of IT architecture will retain many local unique features currently scheduled for phase 2 release
T2S on top of current architecture upgraded two years ago middleware decision to be made 2Q2013 currently scheduled for phase 3 release
T2S on top of current infrastructure RFP out to allow tender for major market IT re-engineering T2S to cover EUR settlement only (not Florint) currently scheduled for phase 3 release
T2S on top of current infrastructure some enhancements to be adopted T2S to cover EUR settlement only (not Leu) currently scheduled for phase 1 release
17
The Attractions of the CEE Region - IPOrsquos nThe region is moving from state managed to market economies
nWe expect a greater number of new IPOs ndash on averagemarkets could increase market cap by 100 to reach world ldquonormsrdquo
n Some of the IPOrsquos could be substantial (On the WSE in 2011 there were 16 foreign issuers listed of which 12 on the main list)
n Align this with above average GDP growth and a more friendly global environment and market capitalisations could well rise dramatically
nThe region is still complex change is country centric and local knowledge and involvement is key to managing the process
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
10
The Scale of the CEE Markets
020406080
100120140160
Cap (EUR billions)600
11
The Scale of CEE Markets (Feb turnover EUR)
0
20
40
60
80
100
120
140
160Smaller markets - EUR millions
600
05
101520
Larger markets- EUR billions
12
The Attractions of the CEE Markets
nBest regional economic growth rates
nExporting economies
nCEE adhesion and impact
nIPOrsquos in the future
nGrowing local investor bases
nInfrastructure evolutionary trends
But Very Dependenton EU economies
13
The Attractions of the CEE Region- Economic Growth Ratesn Poor 2012 performance but GDP growth forecast generally ahead of EU average
-3-2-1012345
Austria Czech Hungary Poland Russia Croatia
2011 2012 2013
Source UniCredit CEE Quarterly and Unicredit Economic Research
14
The Attractions of the CEE Region ndash Exporting Economiesn EU is the target of much of exports region still tied
to EU economic performancen Exports are on average 65 of GDP in CEE or CEE
aspirant emerging and frontier markets countries
020406080
100ExportsGDP
Source UniCredit CEE Quarterly
15
The Attractions of the CEE Region ndash CEE adhesion and its impactn EU is a market of 500 mio people ndash 10 CEE countries who
are EU membersaspirants have a population of 110 mio
n EU development and other funds are key drivers for growth
n Euro participation is an emerging issue with currently AT SK and SI being in countries but others plan to join ldquoin the futurerdquo
n And in the securities world harmonisation infrastructure convergence and common regulation are prevailing trends
n The MSI all country index includes AT (developed) RU PL CZ and HU (emerging) from the CEE with most others still classified as ldquofrontierrdquo
16
And the T2S development is attracting both Euro and non Euro markets and is a major enterprise
Austria
Slovakia
Slovenia
Hungary
Romania
Rebuilding platform project plan being implemented details shared with users currently scheduled for phase 3 release
T2S on top of infrastructure total redesign of IT architecture will retain many local unique features currently scheduled for phase 2 release
T2S on top of current architecture upgraded two years ago middleware decision to be made 2Q2013 currently scheduled for phase 3 release
T2S on top of current infrastructure RFP out to allow tender for major market IT re-engineering T2S to cover EUR settlement only (not Florint) currently scheduled for phase 3 release
T2S on top of current infrastructure some enhancements to be adopted T2S to cover EUR settlement only (not Leu) currently scheduled for phase 1 release
17
The Attractions of the CEE Region - IPOrsquos nThe region is moving from state managed to market economies
nWe expect a greater number of new IPOs ndash on averagemarkets could increase market cap by 100 to reach world ldquonormsrdquo
n Some of the IPOrsquos could be substantial (On the WSE in 2011 there were 16 foreign issuers listed of which 12 on the main list)
n Align this with above average GDP growth and a more friendly global environment and market capitalisations could well rise dramatically
nThe region is still complex change is country centric and local knowledge and involvement is key to managing the process
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
11
The Scale of CEE Markets (Feb turnover EUR)
0
20
40
60
80
100
120
140
160Smaller markets - EUR millions
600
05
101520
Larger markets- EUR billions
12
The Attractions of the CEE Markets
nBest regional economic growth rates
nExporting economies
nCEE adhesion and impact
nIPOrsquos in the future
nGrowing local investor bases
nInfrastructure evolutionary trends
But Very Dependenton EU economies
13
The Attractions of the CEE Region- Economic Growth Ratesn Poor 2012 performance but GDP growth forecast generally ahead of EU average
-3-2-1012345
Austria Czech Hungary Poland Russia Croatia
2011 2012 2013
Source UniCredit CEE Quarterly and Unicredit Economic Research
14
The Attractions of the CEE Region ndash Exporting Economiesn EU is the target of much of exports region still tied
to EU economic performancen Exports are on average 65 of GDP in CEE or CEE
aspirant emerging and frontier markets countries
020406080
100ExportsGDP
Source UniCredit CEE Quarterly
15
The Attractions of the CEE Region ndash CEE adhesion and its impactn EU is a market of 500 mio people ndash 10 CEE countries who
are EU membersaspirants have a population of 110 mio
n EU development and other funds are key drivers for growth
n Euro participation is an emerging issue with currently AT SK and SI being in countries but others plan to join ldquoin the futurerdquo
n And in the securities world harmonisation infrastructure convergence and common regulation are prevailing trends
n The MSI all country index includes AT (developed) RU PL CZ and HU (emerging) from the CEE with most others still classified as ldquofrontierrdquo
16
And the T2S development is attracting both Euro and non Euro markets and is a major enterprise
Austria
Slovakia
Slovenia
Hungary
Romania
Rebuilding platform project plan being implemented details shared with users currently scheduled for phase 3 release
T2S on top of infrastructure total redesign of IT architecture will retain many local unique features currently scheduled for phase 2 release
T2S on top of current architecture upgraded two years ago middleware decision to be made 2Q2013 currently scheduled for phase 3 release
T2S on top of current infrastructure RFP out to allow tender for major market IT re-engineering T2S to cover EUR settlement only (not Florint) currently scheduled for phase 3 release
T2S on top of current infrastructure some enhancements to be adopted T2S to cover EUR settlement only (not Leu) currently scheduled for phase 1 release
17
The Attractions of the CEE Region - IPOrsquos nThe region is moving from state managed to market economies
nWe expect a greater number of new IPOs ndash on averagemarkets could increase market cap by 100 to reach world ldquonormsrdquo
n Some of the IPOrsquos could be substantial (On the WSE in 2011 there were 16 foreign issuers listed of which 12 on the main list)
n Align this with above average GDP growth and a more friendly global environment and market capitalisations could well rise dramatically
nThe region is still complex change is country centric and local knowledge and involvement is key to managing the process
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
12
The Attractions of the CEE Markets
nBest regional economic growth rates
nExporting economies
nCEE adhesion and impact
nIPOrsquos in the future
nGrowing local investor bases
nInfrastructure evolutionary trends
But Very Dependenton EU economies
13
The Attractions of the CEE Region- Economic Growth Ratesn Poor 2012 performance but GDP growth forecast generally ahead of EU average
-3-2-1012345
Austria Czech Hungary Poland Russia Croatia
2011 2012 2013
Source UniCredit CEE Quarterly and Unicredit Economic Research
14
The Attractions of the CEE Region ndash Exporting Economiesn EU is the target of much of exports region still tied
to EU economic performancen Exports are on average 65 of GDP in CEE or CEE
aspirant emerging and frontier markets countries
020406080
100ExportsGDP
Source UniCredit CEE Quarterly
15
The Attractions of the CEE Region ndash CEE adhesion and its impactn EU is a market of 500 mio people ndash 10 CEE countries who
are EU membersaspirants have a population of 110 mio
n EU development and other funds are key drivers for growth
n Euro participation is an emerging issue with currently AT SK and SI being in countries but others plan to join ldquoin the futurerdquo
n And in the securities world harmonisation infrastructure convergence and common regulation are prevailing trends
n The MSI all country index includes AT (developed) RU PL CZ and HU (emerging) from the CEE with most others still classified as ldquofrontierrdquo
16
And the T2S development is attracting both Euro and non Euro markets and is a major enterprise
Austria
Slovakia
Slovenia
Hungary
Romania
Rebuilding platform project plan being implemented details shared with users currently scheduled for phase 3 release
T2S on top of infrastructure total redesign of IT architecture will retain many local unique features currently scheduled for phase 2 release
T2S on top of current architecture upgraded two years ago middleware decision to be made 2Q2013 currently scheduled for phase 3 release
T2S on top of current infrastructure RFP out to allow tender for major market IT re-engineering T2S to cover EUR settlement only (not Florint) currently scheduled for phase 3 release
T2S on top of current infrastructure some enhancements to be adopted T2S to cover EUR settlement only (not Leu) currently scheduled for phase 1 release
17
The Attractions of the CEE Region - IPOrsquos nThe region is moving from state managed to market economies
nWe expect a greater number of new IPOs ndash on averagemarkets could increase market cap by 100 to reach world ldquonormsrdquo
n Some of the IPOrsquos could be substantial (On the WSE in 2011 there were 16 foreign issuers listed of which 12 on the main list)
n Align this with above average GDP growth and a more friendly global environment and market capitalisations could well rise dramatically
nThe region is still complex change is country centric and local knowledge and involvement is key to managing the process
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
13
The Attractions of the CEE Region- Economic Growth Ratesn Poor 2012 performance but GDP growth forecast generally ahead of EU average
-3-2-1012345
Austria Czech Hungary Poland Russia Croatia
2011 2012 2013
Source UniCredit CEE Quarterly and Unicredit Economic Research
14
The Attractions of the CEE Region ndash Exporting Economiesn EU is the target of much of exports region still tied
to EU economic performancen Exports are on average 65 of GDP in CEE or CEE
aspirant emerging and frontier markets countries
020406080
100ExportsGDP
Source UniCredit CEE Quarterly
15
The Attractions of the CEE Region ndash CEE adhesion and its impactn EU is a market of 500 mio people ndash 10 CEE countries who
are EU membersaspirants have a population of 110 mio
n EU development and other funds are key drivers for growth
n Euro participation is an emerging issue with currently AT SK and SI being in countries but others plan to join ldquoin the futurerdquo
n And in the securities world harmonisation infrastructure convergence and common regulation are prevailing trends
n The MSI all country index includes AT (developed) RU PL CZ and HU (emerging) from the CEE with most others still classified as ldquofrontierrdquo
16
And the T2S development is attracting both Euro and non Euro markets and is a major enterprise
Austria
Slovakia
Slovenia
Hungary
Romania
Rebuilding platform project plan being implemented details shared with users currently scheduled for phase 3 release
T2S on top of infrastructure total redesign of IT architecture will retain many local unique features currently scheduled for phase 2 release
T2S on top of current architecture upgraded two years ago middleware decision to be made 2Q2013 currently scheduled for phase 3 release
T2S on top of current infrastructure RFP out to allow tender for major market IT re-engineering T2S to cover EUR settlement only (not Florint) currently scheduled for phase 3 release
T2S on top of current infrastructure some enhancements to be adopted T2S to cover EUR settlement only (not Leu) currently scheduled for phase 1 release
17
The Attractions of the CEE Region - IPOrsquos nThe region is moving from state managed to market economies
nWe expect a greater number of new IPOs ndash on averagemarkets could increase market cap by 100 to reach world ldquonormsrdquo
n Some of the IPOrsquos could be substantial (On the WSE in 2011 there were 16 foreign issuers listed of which 12 on the main list)
n Align this with above average GDP growth and a more friendly global environment and market capitalisations could well rise dramatically
nThe region is still complex change is country centric and local knowledge and involvement is key to managing the process
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
14
The Attractions of the CEE Region ndash Exporting Economiesn EU is the target of much of exports region still tied
to EU economic performancen Exports are on average 65 of GDP in CEE or CEE
aspirant emerging and frontier markets countries
020406080
100ExportsGDP
Source UniCredit CEE Quarterly
15
The Attractions of the CEE Region ndash CEE adhesion and its impactn EU is a market of 500 mio people ndash 10 CEE countries who
are EU membersaspirants have a population of 110 mio
n EU development and other funds are key drivers for growth
n Euro participation is an emerging issue with currently AT SK and SI being in countries but others plan to join ldquoin the futurerdquo
n And in the securities world harmonisation infrastructure convergence and common regulation are prevailing trends
n The MSI all country index includes AT (developed) RU PL CZ and HU (emerging) from the CEE with most others still classified as ldquofrontierrdquo
16
And the T2S development is attracting both Euro and non Euro markets and is a major enterprise
Austria
Slovakia
Slovenia
Hungary
Romania
Rebuilding platform project plan being implemented details shared with users currently scheduled for phase 3 release
T2S on top of infrastructure total redesign of IT architecture will retain many local unique features currently scheduled for phase 2 release
T2S on top of current architecture upgraded two years ago middleware decision to be made 2Q2013 currently scheduled for phase 3 release
T2S on top of current infrastructure RFP out to allow tender for major market IT re-engineering T2S to cover EUR settlement only (not Florint) currently scheduled for phase 3 release
T2S on top of current infrastructure some enhancements to be adopted T2S to cover EUR settlement only (not Leu) currently scheduled for phase 1 release
17
The Attractions of the CEE Region - IPOrsquos nThe region is moving from state managed to market economies
nWe expect a greater number of new IPOs ndash on averagemarkets could increase market cap by 100 to reach world ldquonormsrdquo
n Some of the IPOrsquos could be substantial (On the WSE in 2011 there were 16 foreign issuers listed of which 12 on the main list)
n Align this with above average GDP growth and a more friendly global environment and market capitalisations could well rise dramatically
nThe region is still complex change is country centric and local knowledge and involvement is key to managing the process
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
15
The Attractions of the CEE Region ndash CEE adhesion and its impactn EU is a market of 500 mio people ndash 10 CEE countries who
are EU membersaspirants have a population of 110 mio
n EU development and other funds are key drivers for growth
n Euro participation is an emerging issue with currently AT SK and SI being in countries but others plan to join ldquoin the futurerdquo
n And in the securities world harmonisation infrastructure convergence and common regulation are prevailing trends
n The MSI all country index includes AT (developed) RU PL CZ and HU (emerging) from the CEE with most others still classified as ldquofrontierrdquo
16
And the T2S development is attracting both Euro and non Euro markets and is a major enterprise
Austria
Slovakia
Slovenia
Hungary
Romania
Rebuilding platform project plan being implemented details shared with users currently scheduled for phase 3 release
T2S on top of infrastructure total redesign of IT architecture will retain many local unique features currently scheduled for phase 2 release
T2S on top of current architecture upgraded two years ago middleware decision to be made 2Q2013 currently scheduled for phase 3 release
T2S on top of current infrastructure RFP out to allow tender for major market IT re-engineering T2S to cover EUR settlement only (not Florint) currently scheduled for phase 3 release
T2S on top of current infrastructure some enhancements to be adopted T2S to cover EUR settlement only (not Leu) currently scheduled for phase 1 release
17
The Attractions of the CEE Region - IPOrsquos nThe region is moving from state managed to market economies
nWe expect a greater number of new IPOs ndash on averagemarkets could increase market cap by 100 to reach world ldquonormsrdquo
n Some of the IPOrsquos could be substantial (On the WSE in 2011 there were 16 foreign issuers listed of which 12 on the main list)
n Align this with above average GDP growth and a more friendly global environment and market capitalisations could well rise dramatically
nThe region is still complex change is country centric and local knowledge and involvement is key to managing the process
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
16
And the T2S development is attracting both Euro and non Euro markets and is a major enterprise
Austria
Slovakia
Slovenia
Hungary
Romania
Rebuilding platform project plan being implemented details shared with users currently scheduled for phase 3 release
T2S on top of infrastructure total redesign of IT architecture will retain many local unique features currently scheduled for phase 2 release
T2S on top of current architecture upgraded two years ago middleware decision to be made 2Q2013 currently scheduled for phase 3 release
T2S on top of current infrastructure RFP out to allow tender for major market IT re-engineering T2S to cover EUR settlement only (not Florint) currently scheduled for phase 3 release
T2S on top of current infrastructure some enhancements to be adopted T2S to cover EUR settlement only (not Leu) currently scheduled for phase 1 release
17
The Attractions of the CEE Region - IPOrsquos nThe region is moving from state managed to market economies
nWe expect a greater number of new IPOs ndash on averagemarkets could increase market cap by 100 to reach world ldquonormsrdquo
n Some of the IPOrsquos could be substantial (On the WSE in 2011 there were 16 foreign issuers listed of which 12 on the main list)
n Align this with above average GDP growth and a more friendly global environment and market capitalisations could well rise dramatically
nThe region is still complex change is country centric and local knowledge and involvement is key to managing the process
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
17
The Attractions of the CEE Region - IPOrsquos nThe region is moving from state managed to market economies
nWe expect a greater number of new IPOs ndash on averagemarkets could increase market cap by 100 to reach world ldquonormsrdquo
n Some of the IPOrsquos could be substantial (On the WSE in 2011 there were 16 foreign issuers listed of which 12 on the main list)
n Align this with above average GDP growth and a more friendly global environment and market capitalisations could well rise dramatically
nThe region is still complex change is country centric and local knowledge and involvement is key to managing the process
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
18
The Attractions of the CEE Region ndash Growing Local Investor Base
n A recent CEESEG study showed that just 138 of the domestic stocks held by institutional investors in their four markets are held by domestic institutions the balance by foreign investors with the US (336) UK (188) and France (53) being the major investors
0
10
20
30
40
USA UK Austria France Germany Other
Foreign Investment in CEE
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
19
The Attraction of the CEE Region - Infrastructure is changing
nThe dominant players in the region are CEESEG and the Warsaw Stock Exchange
0
20
40
60
80
Securities Euro (b) MiFID liquid Int MembersCEESEG WSE
Source CEESEG
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
20
But The market Infrastructure Is Bound To Change
n MTFrsquos are syphoning off some of the more liquid stock activity to the detriment of the traditional Exchangesn Many regional markets are small many markets have low liquidityn A regional grouping makes sense and the major impediment will be political
Oslash Can it be structured around a CEE regional grouping an expanded CEESEG a hub from Moscow or the sometimes debated PolishAustrian alliance
Oslash Will it be driven by an acquirer from Western Europe such as Deutsche Boerse or Euronext
Oslash Is there enough value to attract a new entrant a buyer from another region
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
21
The Special Features of the Region
nPolitical and economic factors drive markets (eg electoralchange public policy on savings)
nCost advantage over much of EU exporters (dependent on EU economic performance expanding markets outside EU)
n Markets are adopting EU harmonization (better governance improved transparency but still ldquoexcitingrdquo developing markets)
BUTn Substantial diversity remains across markets ( the region will move
forward at different speeds and will take a decade + long process)
ANDn Unicredit GSS presence countries are 14 states of the CEE
accounting for around 450 of the Deloitte CEE top 500 companies
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
22
The Custodian Perspective In A Changing Environment
n Infrastructure consolidation likely to be Exchange led with CCPs and CSDs as slow followersn EU legislation being adopted in EU markets and becoming template for best practise elsewheren Harmonisation (eg T+2) with an eye to Western Europen Risk and cost dynamics militate for the regional custody providers with a strong regional asset gathering rolen Although we can think of a ldquosingle marketrdquo for the next generation local presence key in markets with many unique characteristics
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
23
My Vision For the Future Decade- Exciting Space with ChallengesMacroeconomic perspectivenFaster economic growth
than world or European average
Capital markets perspectiven Stock Exchanges increase
in scale but also align to major Groupings within or outside region nRapid development of
domestic institutional markets
Regional Investments perspectiven Russia Poland Czech Republic
and possibly Hungary will move from emerging to developed in MSI
Infrastructure perspectivenCCP development and
interoperability with major groupings nCSDs use common infrastructures
but retain local presences (notary functions) with CEESEG Warsaw and Moscow retaining independencenAlignment of infrastructures and
adoption of EU laws across much of the region
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Why CEE
Tomasz Grajewski
Global Head GSSUnicredit
24
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
25
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
The impact of EU legislation on the post-trading industryRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)9th CEE Summit Prague ndash 19th April 2013
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
FESE represents in total 46 Securities Exchanges (in equities bonds and derivatives) through 21 Full Members from all EU Member States and Iceland Norway and Switzerland as well as 4 Observer Members from European emerging markets
46 Securities Exchanges through 20 Full Members from 30 countries
4 Observer Members from 4 countries
The Federation of European Securities Exchanges (FESE)
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Why a trading person in a post-trading panel
TRADING
POST-TRADING
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
QuestionHow many EU legislations regulated CCPs and CSDs prior to EMIRCSD Legislation
1 None
2 2
3 3
4 5
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
G20 implementation in the EU for OTC derivatives
OTC Derivatives
Clearing obligation
Trading obligation
Capital RequirementsContracts subject to CCP clearing obligation
Contracts subject to trading obligation RMsMTFsOTFs
G20
CRD IV
EMIR
MiFID
bull Average frequency of tradesbull Average size of tradesbull Number and type of active market participants
ESMA OK based on
bull Standardisation of the contractbull Reduction of systemic risk in the financial system (inc lack of transparency on positions)bull Liquidity of contracts
bull Availability of pricing information
ESMA OK based on
EMIR also includes a requirement for derivatives to be reported to Trade Repositories
bull CCP clearing obligationbull Liquidity based on
31
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Arrangements for naked CDS trading
Scope
MiFID
EMIR
CRD IV
Post-trading
TradingMarketAbuse
Eq FI Ds
Ds OTCDsEqEq FI DsScope
- Sounder CCPs
- Trade repositories
Gral review + G20 commitments on derivatives
Short SellingCDS
Eq FI Ds
+ Use of CCPs Extension of MAD regime to OTCDerivatives
CSD Reg
Eq FI
- Sounder CSDs
- Settlement Cycles
Eq = Equity FI = Fixed Income Ds = Derivatives
The EU regulatory landscape
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
EMIR
Equity Fixed Income
Derivatives
`Trading
Clearing
Trade repositories
Trading
Clearing
Settlement
Trading
Clearing
Derivatives Equity Fixed Income
Settlement
EMIR - Provisions
1- CCP clearing obligation
2- CCPs rules and relationship with members
3- Reporting to trade repositories obligation
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Question
What percentage of the global OTC interest rate swaps market was cleared at the end of 2009
1 35
2 52
3 70
4 98
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Main impacts of EMIR
Safety
Efficiency
Transparency
MarginsCollateral
Paper-work
New infrastructures
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Trade Repositories for EU derivatives
DTCC
CDS
DTCC
IRS
DTCC
London
CDS
Copy of the US original
Luxembourg
REGIST-TR
ALL
FXCommodity
DTCC
Equity
London
Access to data by EU supervisors
EUU
S
DTCC
Others
DTCC
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
CSD Legislation ndash In progress
Market discipline
Settlement cycles
Electronic records
CSD rules
Passport
User choice
Access
More than settlement
Settlement
Safety Efficiency
Safety Efficiency Transparency
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
QuestionThe need of collateral will increase after the implementation of EU Legislation What are the estimated annual costs of the internal fragmentation of the global collateral management market
1 17 million EUR
2 83 million EUR
3 1 billion EUR
4 4 billion EUR
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
So what is there for the future
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
So what is there for the futureReview
EMIR
CSD Legislation
New issues
Communication protocols
CCP services to buy-side
Intraday settlement operating hoursdeadlines
Pre-settlement harmonisation
Registration procedures
Withholding tax procedures
Transaction tax procedures
Exchange Traded Funds (ETFs)
Cross border shareholder transparency
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Děkuji
ContactRafael PlataHead of Derivatives and Post-tradingFederation of European Securities Exchanges (FESE)platafeseeu+3225510189
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
42
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Panel discussion
Latest Trends in Eastern Funds Distribution
43
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Fidelity Worldwide Investment
April 2013
Adam LessingHead of Austria and Eastern Europe
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
sect Founded in 1969 serving institutional clients for over 40 years
sect Investment Management is our only business
sect Fundamental research is the foundation of our investments
sect The company is privately held majority owned by the managers who run it and our chairman Ned Johnson and his family have been the single largest shareholders since inception
sectWe have built our business slowly and steadily through organic growth so our culture has remained strong and our business franchise stable
Fidelity Worldwide Investment is a Private CompanyIts only Business is Asset Management
Our interests and our clientsrsquo interests are well aligned
Source Fidelity Worldwide Investment (FIL Limited)
45
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Singapore
Sydney
Hong Kong Taipei
Shanghai Tokyo
Seoul
Mumbai
Delhi
Dalian
Fidelity Worldwide InvestmentGlobal research resources
46
71 Portfolio Managers68 Equity Research37 Fixed Income Research11 Other Research
Pan Europe and Americas
10 Portfolio Managers25 Equity Research
Japan
24 Portfolio Managers42 Equity Research11 Fixed Income Research
Asia Pacific (ex Japan)
Emerging Markets
375 Total Investment Professionals
105 Portfolio Managers
194 Research Professionals
26 Traders (ex Fixed Income)
28 Divisional Management
22 Equity Research Support
Global
Europe
United Kingdom
United States
Sector and Country
LondonFrankfurt
MilanParis
Sao Paulo
Research Professional numbers include fixed income analysts and equity (including technical and shorting) analysts Fixed Income Research includes quantitative and credit analysts and traders Other Research includes real estate multi-manager quantitative and derivatives expertsPortfolio Managers include equity fixed income real estate and multi-manager teamsSource FIL Limited 31 December 2012 Data is unaudited
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Fidelity Worldwide InvestmentEastern Europe Presence
sect Warsaw
sect Vienna
sect Prague
sect Budapest
sect Bratislava
sect Sales and marketing office Vienna
sect Sales office Warsaw
sect Funds registered in Czech Republic Slovak Republic and Hungary
sect Fund Platform FFB in Germany
sect Fund Platform FFB opening in Austria (Q3 2013)
sect Kronberg
sect
Source Fidelity Worldwide Investment (FIL Limited) as at 3132013
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Fidelity Offers a Wide Range of Investment Funds Across all Asset Classes
8 Global EqFds 18 Eur EqFds 4 America Fds 2 Asian Bd Fds 6 Target Fds
2 Property Fds 2 EM Bd Fds 11 Bal Fds
3 euro Bd Fds
4 High Yld Fds
3 Japan Fds
19 Asia Fds
6 Intlsquol Fds
7 Cash Funds
Equities Equities EquitiesEquities
Fixed Income and Cash
FF Global RealAssets FF Euro Blue
Chip
FF ChinaConsumer
FF US High Yield
Source FIL 3062012
FF EuropeanGrowth
Balanced
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Local Web and Marketing Support are Key
Source Fidelity Worldwide Investment (FIL Limited)
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Important Information
This material is intended for investment professionals and must not be relied upon by private investors This communication is not directed at and must not beacted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised fordistribution or where no such authorisation is required These figures reflect the resources of FIL Limited and its subsidiaries and FMR LLC and its subsidiariesFIL Limited and FMR LLC are separate companies with some shareholders in common Source FIL and FMR LLC April 2013 Data is unaudited Researchprofessionals include associates analysts country and sector managers who retain research responsibility and technical amp quantitative analysts who are part ofthe research groups Assets and resources as of 31122012 are those of FIL Limited Data is unaudited Issued by FIL (Luxembourg) SA 2a rue AlbertBorschette 1021 Luxembourg Luxembourg Fidelity Worldwide Investment only gives information on its products and does not provide investment advice basedon individual circumstances Any service security investment fund or product outlined may not be available to or suitable for you and may not be available in yourjurisdiction It is your responsibility to ensure that any service security investment fund or product outlined is available in your jurisdiction before any approach ismade regarding that service security investment fund or product The document may not be reproduced or circulated without prior permission and must not bepassed to private investors All views expressed are those of Fidelity Worldwide Investment Fidelity Fidelity Worldwide Investment and the Fidelity WorldwideInvestment logo and currency F symbol are trademarks of FIL Limited FidelityFidelity International means FIL Limited (FIL) and its subsidiary companiesInvestments should be made only on the basis of the current Key Investor Information Document (KIID) current prospectus the annual report and ndash if publishedlater ndash the last semi-annual report They are available along with the current annual and semi-annual reports free of charge from our distributors from ourEuropean Service Centre in Luxembourg FIL (Luxembourg) SA 2a rue Borschette 1021 Luxembourg your financial advisor or for Slovakia from ourrepresentative UniCredit Bank Slovakia as with its registered office at Sancova 1a 813 33 Bratislava for Czech Republic from our representative UnicreditBank Czech Republic as Zeletavska 15251 140 92 Prag 4 ndash Michle or for Hungary from our distributor Raiffeisen Bank Zrt Akademia u 6 1054 BudapestExcept for the KIID these documents are in English Documents include the fund rules and further information regarding the incorporation of the UCITs Furtherinformation regarding the nature of the risk for this fund would be available at the following web pages For Czech Republic wwwfidelitycz for Hungarywwwfidelitycohu for Slovakia wwwfidelitysk MKAT1749
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Investičniacute společnost Českeacute spořitelny as
Member of Erste Asset Management GmbH
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
ISČS Company Presentation26042013 - Page 52
EAM - leading asset manager in CEE region
sect Core competence mutual fundrsquos and individual mandates asset management sect EAMrsquos oldest subsidiary ERSTE-SPARINVEST KAG was founded in Austria in
1965sect Erste Asset Management Group (EAM) has EUR 47 bn AuMsect EAM has 290 employees thereof 85
investment professionalssect Number 1 in Austria Romaniasect Number 2 in Czech Republic
Croatia Serbiasect Number 3 in Hungary Slovakiasect ERSTE-SPARINVEST KAG is GIPS
certified since 2003sect Strong partner Erste Bank (market leader
in AUT CZ RO SK serves 17 million clients employs around 50000 people and operates 3100 branches in 8 countries)
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
ltErste Asset Management GmbHgt26042013 - page 53
Organizational chart of Erste Asset Management
Erste Asset Management GmbH is owned 100 by Erste Group Bank AG
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
portfolio unit
International provider with local anchoring
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
From a personal point of view would you invest into mutual funds
1 Yes I have already invested into mutual funds
2 No but why not in the future
3 Yes but I wonrsquot do it again
4 No and Irsquoll never invest in those products
55
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Should you invest into mutual funds what would you primarily look at
1 The brand reputation of the Investment Manager
2 The fundrsquos strategy Theme
3 The risks related to investment policy
4 The costs
56
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Investors and products in the area of mutual funds
Martin Rezac CFAErste Asset Management
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Funds GDP
Source IMF EFAMA local associations of fund management companies
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Funds Capita (in EUR)
Source IMF EFAMA local associations of fund management companies
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Asset Class Mix of Fund Markets
Source local associations of fund management companies
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
Banking Development in Transformation Economies
Source Erste Group
62
THANK YOU
63
62
THANK YOU
63
THANK YOU
63
