ESPA RESERVE DOLLAR - Erste Market · ESPA RESERVE DOLLAR 2 General Information about the Investment Firm The company Erste Asset Management GmbH Am Belvedere 1, A-1100 Vienna Telephone:

ESPA RESERVE DOLLARJointly owned fund pursuant to the InvFG

Annual Report 2018/19

Accounting Year 2018/19

Contents

General Information about the Investment Firm ........................................................................................................ 2

Development of the Fund .............................................................................................................................................. 3

Method of Calculating the Global Exposure ................................................................................................................ 4

Asset Allocation ............................................................................................................................................................. 4

Comparative Overview .................................................................................................................................................. 5

Disbursement/Payment ............................................................................................................................................... 8

Income Statement and Changes in Fund Assets ........................................................................................................ 9

1. Value Development over the Accounting Year (Fund Performance) ....................................................................... 9

2. Fund Result ................................................................................................................................................................. 12

3. Changes in Fund Assets............................................................................................................................................. 13

Statement of Assets and Liabilities as of 31 May 2019 ........................................................................................... 14

Remuneration Policy .................................................................................................................................................... 22

Audit Report ................................................................................................................................................................... 26

Fund Rules ...................................................................................................................................................................... 29

Annex to the Fund Rules ................................................................................................................................................ 32

ESPA RESERVE DOLLAR

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General Information about the Investment Firm

The company Erste Asset Management GmbH Am Belvedere 1, A-1100 Vienna Telephone: +43 05 0100-19777, Fax: +43 05 0100-919777

Registered capital EUR 2.50 million

Shareholders Erste Group Bank AG (64.67%) VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe (0.76%) Erste Bank der österreichischen Sparkassen AG (22.17%) DekaBank Deutsche Girozentrale, Frankfurt (1.65%) NÖ-Sparkassen Beteiligungsgesellschaft m. b. H. (0.76%) Salzburger Sparkasse Bank Aktiengesellschaft (1.65%) Sieben Tiroler Sparkassen Beteiligungsgesellschaft m. b. H. (1.65%) Steiermärkische Bank und Sparkassen Aktiengesellschaft (3.30%) „Die Kärntner“ Trust-Vermögensverwaltungsgesellschaft m. b. H. & Co KG (1.65%) Tiroler Sparkasse Bankaktiengesellschaft Innsbruck (1.74%)

Supervisory Board Rudolf SAGMEISTER (Chairman) Thomas SCHAUFLER (Deputy Chairman) Ingo BLEIER Harald GASSER Gerhard GRABNER Oswald HUBER Radovan JELASITY Robert LASSHOFER Martin SIMHANDL (until 22 February 2019) Gerald WEBER (from 22 February 2019) Appointed by the Works Council: Martin CECH Heinrich Hubert REINER Peter RIEDERER Nicole WEINHENGST Manfred ZOUREK

Managing directors Heinz BEDNAR Winfried BUCHBAUER Peter KARL Wolfgang TRAINDL

Prokuristen (proxies) Achim ARNHOF (from 15 December 2018) Karl FREUDENSCHUSS Manfred LENTNER Günther MANDL Gerold PERMOSER Magdalena REISCHL State commissioners Caroline HABERFELLNER Philipp VISKI-HANKA Auditor Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H.

Depositary bank Erste Group Bank AG

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Dear Unit-holder,

We are pleased to present you the following annual report for the ESPA RESERVE DOLLAR jointly owned fund pursuant to the InvFG for the period from 1 June 2018 to 31 May 2019.

Development of the FundMarket environment and investment policy

The financial markets continued to be dominated by the unresolved trade conflict between the USA and China and by the Fed’s interest rate policy. Possible tariffs on Mexican imports into the USA and potential barriers in automobile trade between the USA and European Union were added to the mix.

The data from the USA are making it increasingly clear that the country has reached its economic peak for this cycle. While the Fed still followed a restrictive interest rate policy in 2018 and made further 25 basis point hikes in June, September, and December to bring the rate to 2.25–2.50%, its rhetoric has since fundamentally changed. After sharp corrections on the markets in December 2018, no further rate hikes were expected for the year in the first quarter of 2019, and the Fed has also issued statements to this effect. The markets are now already pricing in more than two rate cuts for the remainder of 2019. The Fed wants to make its decision based on the data, and has indicated its willingness to take expansive steps to support the economy should the inflation figures remain disappointing and should the trade dispute have a negative impact on economic growth. Despite the negative political environment and somewhat weaker economy, highly rated corporate bonds were thus able to hold their own during the reporting period.

US Treasuries posted yields well above those for high-quality euro government bonds on a relatively consistent basis. While the yield on a ten-year US Treasury was still above 3% in the second half of 2018, it has fallen continuously since December 2018 and is currently just over 2%. By contrast, the curve remained relatively flat over the period.

Exchange rates were driven by the market’s assessment of public finances, the economy, political uncertainty, and the anticipated yield gaps compared with other currency areas. Expectations about future monetary policy steps played a major role. The US dollar appreciated substantially versus the euro over the entire reporting period and is currently at around 1.11.

The bond valuations were still supported by the search for attractive earnings potential, though investors recently lost some of their considerable risk appetite. Financial sector bonds with interesting yields are still highly attractive thanks to their ability to profit from the higher interest rates and thanks to their fundamental strength. While the rise in yields until December 2018 had a negative impact on bonds, yields have fallen again substantially since the beginning of the year, boosting bond prices. The spread for credit risk narrowed from its high in December through to April 2019, but widened slightly again in May due to the resurgence of protectionist tendencies.

We increased the duration of the bonds in the fund somewhat in the first half of 2019 to profit from the falling yields. This also caused a slight increase in the share of fixed-rate bonds versus variable-rate bonds (floating rate notes). In terms of sectors, we remain heavily invested in the financial sector.

No changes were made to the fund’s strategy, which is based on a continuous analysis of inefficiencies (e.g. creditor rights for financial instruments) and market distortions and the continuous monitoring of the portfolio in terms of yield potential and degree of risk.

The USD unit category (ISIN AT0000825187) achieved a positive performance of 2.47% in the reporting period. The EUR unit category (ISIN AT0000627203) generated a positive performance of 7.51%.

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* Total nominal values of derivative instruments without taking into account offsetting and hedging (item 8.5. Schedule B InvFG 2011).** Total derivative risk taking offsetting and hedging into account = total of the equivalent values of the underlying assets as a percentage

of the fund assets.

Asset Allocation

31 May 2019 31 May 2018USD millions % USD millions %

Bonds denominated inUSD 27.8 98.44 23.8 98.29

Securities 27.8 98.44 23.8 98.29Bank balances 0.2 0.80 0.2 0.98Interest entitlements 0.2 0.76 0.2 0.73Other deferred items - 0.0 - 0.00 - 0.0 - 0.00Fund assets 28.3 100.00 24.3 100.00

Method of Calculating the Global Exposure 1)

Method of calculating the global exposure: Commitment approach

Reference assets used: –

Value at risk:

Lowest value:

Average value:

Highest value:

–

–

–

Model used: –

Leverage* when using the value-at-risk calculation method: –

Leverage** according to § 4 of the 4th

Derivatives RiskMeasurement and Reporting Regulation:

–

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Comparative OverviewAccounting

year2016/20172017/20182018/2019

Accounting year

Fund type ISIN Currency Calculated value per

unit

Dividend disbursement/payment

Re-investment

Development in per cent

2016/2017Dividend-bearing units AT0000627203 EUR 84.17 0.4446 - -0.04

2017/2018Dividend-bearing units AT0000627203 EUR 81.47 0.9424 0.2777 -2.69

2018/2019Dividend-bearing units AT0000627203 EUR 86.57 2.1537 0.1309 7.51

Accounting year


unit


Re-investment


2016/2017Dividend-bearing units AT0000A1YF66 EUR - - - -

2017/2018Dividend-bearing units AT0000A1YF66 EUR 85.41 - - -

2018/2019Dividend-bearing units AT0000A1YF66 EUR 91.71 - - -

Accounting year


unit


Re-investment


2016/2017Dividend-bearing units AT0000825187 USD 94.66 0.5000 - 0.97

2017/2018Dividend-bearing units AT0000825187 USD 95.21 1.1000 0.4202 1.11

2018/2019Dividend-bearing units AT0000825187 USD 96.43 2.4000 0.0228 2.47

General information about performance:The performance of unit categories with no outstanding units at the end of the reporting period or no outstandingunits during the reporting period is generally based on the dividend-adjusted performance of the overall fund. Inthese cases, the performance is not reported below. When a unit category is issued during the reporting period, the performance and reinvestment are calculated fromthe point in time that the unit category is launched. Because of this and possible other fees and currency classes,the performance and reinvestment of this unit category differ from those of comparable unit categories. The performance is determined assuming the reinvestment of all paid dividends and amounts at their nominalvalue on the day of disbursement.

Fund assets

18,257,726.3224,262,249.8428,275,108.66

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Accounting year


unit


Re-investment


2016/2017Dividend-bearing units AT0000A1YF74 USD - - - -

2017/2018Dividend-bearing units AT0000A1YF74 USD 99.70 - - -

2018/2019Dividend-bearing units AT0000A1YF74 USD 102.20 - - -

Accounting year


unit


Re-investment


2016/2017Non-dividend-bearing units AT0000627211 EUR 114.69 0.0000 0.0000 -0.03

2017/2018Non-dividend-bearing units AT0000627211 EUR 111.71 0.3429 0.8840 -2.60

2018/2019Non-dividend-bearing units AT0000627211 EUR 119.57 0.8170 2.1548 7.37

Accounting year


unit


Re-investment


2016/2017Non-dividend-bearing units AT0000A1YF82 EUR - - - -

2017/2018Non-dividend-bearing units AT0000A1YF82 EUR 85.34 0.0459 0.1211 1.22

2018/2019Non-dividend-bearing units AT0000A1YF82 EUR 91.73 - - -

Accounting year


unit


Re-investment


2016/2017Non-dividend-bearing units AT0000809140 USD 128.98 0.0175 0.0465 0.98



Accounting year


unit


Re-investment


2016/2017Non-dividend-bearing units AT0000A1YF90 USD - - - -

2017/2018Non-dividend-bearing units AT0000A1YF90 USD 99.70 - - -

2018/2019Non-dividend-bearing units AT0000A1YF90 USD 102.20 - - -

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Accounting year


unit


Re-investment


2016/2017KESt-exempt non-dividend-bearing units

AT0000A0C8W9 EUR 120.85 - 0.2981 -0.03


AT0000A0C8W9 EUR 117.73 - 1.8860 -2.58


AT0000A0C8W9 EUR 126.49 - 0.8661 7.44

Accounting year


unit


Re-investment



AT0000A1YFA7 EUR - - - -


AT0000A1YFA7 EUR 85.45 - - -


AT0000A1YFA7 EUR 91.78 - - -

Accounting year


unit


Re-investment



AT0000673249 USD 135.90 - 0.5322 0.97


AT0000673249 USD 137.42 - 2.1858 1.12


AT0000673249 USD 140.91 - 3.6347 2.54

Accounting year


unit


Re-investment



AT0000A1YFB5 USD - - - -


AT0000A1YFB5 USD 99.75 - 0.4267 -0.25


AT0000A1YFB5 USD 102.51 - 2.8583 2.77

ESPA RESERVE DOLLAR

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Disbursement/Payment

The disbursement or payment will be effected on or after 15 July 2019 at

Erste Group Bank AG, Vienna,

and the respective bank managing the Unit-holder’s securities account.

Fund type ISIN CurrencyDividend disbursement/payment

KESt with option declaration

KESt w/o option declaration

Reinvestment

Dividend-bearing units AT0000627203 EUR 2.1537 0.6282 0.6282 0.1309

Dividend-bearing units AT0000A1YF66 EUR - - - -

Dividend-bearing units AT0000825187 USD 2.4000 0.6662 0.6662 0.0228

Dividend-bearing units AT0000A1YF74 USD - - - -

Non-dividend-bearing units AT0000627211 EUR 0.8170 0.8170 0.8170 2.1548

Non-dividend-bearing units AT0000A1YF82 EUR - - - -

Non-dividend-bearing units AT0000809140 USD 0.9149 0.9149 0.9149 2.4123

Non-dividend-bearing units AT0000A1YF90 USD - - - -

KESt-exempt non-dividend-bearing units

AT0000A0C8W9 EUR - * - - 0.8661


AT0000A1YFA7 EUR - * - - -


AT0000673249 USD - * - - 3.6347


AT0000A1YFB5 USD - * - - 2.8583

The following disbursement or payment will be made for the accounting year from 1 June 2018 to 31 May 2019. Thecoupon-paying bank is obligated to withhold capital gains tax from this disbursement if the respective investor is notexempt from the payment of this tax.

* Pursuant to the penultimate sentence of § 58 (2) of the Austrian Investment Fund Act, no capital gains tax will be paid.

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Income Statement and Changes in Fund Assets1. Value Development over the Accounting Year (Fund Performance)

Calculation according to the OeKB method per unit in the unit currency not accounting for an front-end surcharge

AT0000627203 dividend-bearing units EURUnit value at the beginning of the reporting period (12,762.556 units) 81.47Disbursement/payment on 12.07.2018 (corresponds to roughly 0.0117 units at a calculated value of 80.35) 0.9424Unit value at the end of the reporting period (21,987.302 units) 86.57Total value including (notional) units gained through dividend disbursement/payment 87.59Net earnings per unit 6.12Value development of one unit in the period 7.51%

AT0000A1YF66 dividend-bearing units EURUnit value at the beginning of the reporting period (0.000 units) 85.41Disbursement/payment 0.0000Unit value at the end of the reporting period (0.000 units) 91.71Total value including (notional) units gained through dividend disbursement/payment -Net earnings per unit -Value development of one unit in the period -

AT0000825187 dividend-bearing units USDUnit value at the beginning of the reporting period (72,472.120 units) 95.21Disbursement/payment on 12.07.2018 (corresponds to roughly 0.0117 units at a calculated value of 94.23) 1.1000Unit value at the end of the reporting period (72,185.000 units) 96.43Total value including (notional) units gained through dividend disbursement/payment 97.56Net earnings per unit 2.35Value development of one unit in the period 2.47%

AT0000A1YF74 dividend-bearing units USDUnit value at the beginning of the reporting period (0.000 units) 99.70Disbursement/payment 0.0000Unit value at the end of the reporting period (0.000 units) 102.20Total value including (notional) units gained through dividend disbursement/payment -Net earnings per unit -Value development of one unit in the period -

The performance of unit categories with no outstanding units at the end of the reporting period or no outstanding units during thereporting period is generally based on the dividend-adjusted performance of the overall fund. In these cases, the “performance”, the“net earnings per unit”, and the “total value including (notional) units gained through disbursement/payment” are not reported in thefollowing. When a unit category is issued during the reporting period, the performance is calculated from the point in time that the unit category islaunched. Because of this and possible other fees and currency classes, the performance of this unit category differs from that ofcomparable unit categories.

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AT0000627211 non-dividend-bearing units EURUnit value at the beginning of the reporting period (42,709.619 units) 111.71Disbursement/payment on 12.07.2018 (corresponds to roughly 0.0031 units at a calculated value of 111.09) 0.3429Unit value at the end of the reporting period (33,572.328 units) 119.57Total value including (notional) units gained through dividend disbursement/payment 119.94Net earnings per unit 8.23Value development of one unit in the period 7.37%

AT0000A1YF82 non-dividend-bearing units EURUnit value at the beginning of the reporting period (10,000.000 units) 85.34Disbursement/payment on 12.07.2018 (corresponds to roughly 0.0006 units at a calculated value of 83.06) 0.0459Unit value at the end of the reporting period (0.000 units) 91.73Total value including (notional) units gained through dividend disbursement/payment -Net earnings per unit -Value development of one unit in the period -

AT0000809140 non-dividend-bearing units USDUnit value at the beginning of the reporting period (30,688.712 units) 130.40Disbursement/payment on 12.07.2018 (corresponds to roughly 0.0045 units at a calculated value of 129.99) 0.5792Unit value at the end of the reporting period (39,818.390 units) 133.01Total value including (notional) units gained through dividend disbursement/payment 133.60Net earnings per unit 3.20Value development of one unit in the period 2.45%

AT0000A1YF90 non-dividend-bearing units USDUnit value at the beginning of the reporting period (0.000 units) 99.70Disbursement/payment 0.0000Unit value at the end of the reporting period (0.000 units) 102.20Total value including (notional) units gained through dividend disbursement/payment -Net earnings per unit -Value development of one unit in the period -

AT0000A0C8W9 KESt-exempt non-dividend-bearing units EURUnit value at the beginning of the reporting period (146.000 units) 117.73Disbursement/payment 0.0000Unit value at the end of the reporting period (22,630.000 units) 126.49Total value including (notional) units gained through dividend disbursement/payment 126.49Net earnings per unit 8.76Value development of one unit in the period 7.44%

AT0000A1YFA7 KESt-exempt non-dividend-bearing units EURUnit value at the beginning of the reporting period (0.000 units) 85.45Disbursement/payment 0.0000Unit value at the end of the reporting period (0.000 units) 91.78Total value including (notional) units gained through dividend disbursement/payment -Net earnings per unit -Value development of one unit in the period -

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AT0000673249 KESt-exempt non-dividend-bearing units USDUnit value at the beginning of the reporting period (14,330.007 units) 137.42Disbursement/payment 0.0000Unit value at the end of the reporting period (15,615.446 units) 140.91Total value including (notional) units gained through dividend disbursement/payment 140.91Net earnings per unit 3.49Value development of one unit in the period 2.54%

AT0000A1YFB5 KESt-exempt non-dividend-bearing units USDUnit value at the beginning of the reporting period (35,990.233 units) 99.75Disbursement/payment 0.0000Unit value at the end of the reporting period (39,326.937 units) 102.51Total value including (notional) units gained through dividend disbursement/payment 102.51Net earnings per unit 2.76Value development of one unit in the period 2.77%

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2. Fund Result

a. Realised fund result

Ordinary fund result

Income (without profit or loss from price changes)

Interest income (excluding income adjustment) 847,864.60

Dividend income 0.00

Other income 8) 0.00

Total income (without profit or loss from price changes) 847,864.60

Interest paid 0.00

Expenses

Fees paid to Investment Firm - 90,857.51

Costs for the financial auditor and tax consultation - 4,704.76

Publication costs - 18,347.23

Securities account fees - 6,435.33

Depositary bank fees - 7,655.19

Costs for the external consultant 0.00

Total expenses - 128,000.02

Compensation for management costs from sub-funds 1) 0.00

Ordinary fund result (excluding income adjustment) 719,864.58

Realised profit or loss from price changes 2) 3)

Realised gains 4) 37,116.11

Realised losses 5) - 128,448.57

Realised profit or loss from price changes (excluding income adjustment) - 91,332.46

Realised fund result (excluding income adjustment) 628,532.12

b. Unrealised profit or loss from price changes 2) 3)

Changes in the unrealised profit or loss from price changes 7) 15,460.07

Result for the reporting period 6) 643,992.19

c. Income adjustment

Income adjustment for income in the period 36,934.00

Income adjustment for profit carried forward from dividend-bearing units 23,529.86Overall fund result 704,456.05

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3. Changes in Fund Assets

Fund assets at the beginning of the reporting period 24,262,249.84

Disbursement/payment in the accounting year - 137,277.54

Issue and redemption of units 3,445,680.31

Overall fund result

(The fund result is shown in detail under item 2.) 704,456.05Fund assets at the end of the reporting period 28,275,108.66

1) Reimbursements (in the sense of commissions) paid by third parties are forwarded to the fund after deduction of any associated costs. Erste Bank der oesterreichischen Sparkassen AG receives 25% of the calculated commissions to cover administrative costs.

2) Realised profits and losses are not calculated precisely for the specific periods, which means that they, as is the case for the changes in the unrealised profit or loss, are not necessarily congruent with the changes in the value of the fund in the reporting year.

3) Total profit or loss from price changes without income adjustment (realised profit or loss from price changes, without income adjustment, plus changes in the unrealised profit or loss): USD -75,872.39.

4) Thereof profits from transactions with derivative financial instruments: USD 0.00. 5) Thereof losses from transactions with derivative financial instruments: USD 0.00. 6) The result for the accounting year includes explicitly reported transaction costs in the amount of USD 0.00. 7) Thereof changes in unrealised gains USD 13,969.10 and unrealised losses USD 1,490.97. 8) The earnings reported under this item can be attributed to lending fees from securities lending transactions conducted with Erste Group

Bank AG in the amount of USD 0.00, to earnings from real estate funds in the amount of USD 0.00, and to other earnings in the amount of USD 0.00.

ESPA RESERVE DOLLAR

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Statement of Assets and Liabilities as of 31 May 2019(including changes in securities assets from 1 June 2018 to 31 May 2019)

Security designation ISIN Purch./ Sales/ Holding Price Value % sharenumber additions disposals in USD of

Units/nominal (nom. in 1,000, rounded) fundassets

Publicly traded securities

Bonds denominated in USD

Issue country Cayman Islands

BAIDU 14/19 US056752AD07 2.750 0 0 500 100.000 500,000.00 1.77Total issue country Cayman Islands 500,000.00 1.77

Issue country Denmark

DANSKE BK 15/20 MTN REGS US23636BAD10 2.750 0 0 500 99.215 496,075.00 1.75Total issue country Denmark 496,075.00 1.75

Issue country France

CREDIT AGR.LDN 17/22 FLR US22536PAC59 4.014 500 0 1,000 101.355 1,013,550.00 3.58Total issue country France 1,013,550.00 3.58

Issue country Japan

MIZUHO FINL GRP 17/22 US60687YAN94 3.481 0 0 500 100.596 502,980.00 1.78Total issue country Japan 502,980.00 1.78

Issue country Republic of Korea

KOREA GAS 2020 144A US50066AAA16 4.250 150 0 150 102.238 153,357.72 0.54Total issue country Republic of Korea 153,357.72 0.54

Issue country Netherlands

ING BK NV 2021 MTN 144A US44987CAM01 2.750 500 0 500 100.540 502,699.40 1.78Total issue country Netherlands 502,699.40 1.78

Issue country Qatar

RAS LAF.L.N.GAS II 05/20 USM8221WAA91 5.298 500 0 500 102.000 85,067.77 0.30Total issue country Qatar 85,067.77 0.30

Issue country Sweden

SKAND.ENSK. 2020 MTN 144A US83051GAE89 2.625 500 0 500 99.951 499,756.01 1.77Total issue country Sweden 499,756.01 1.77

Interestrate

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Interestrate

Issue country USA

B.A.T. CAP. 17/22 FLR US05526DAX30 3.398 250 0 250 98.690 246,725.00 0.87BURLINGTON NORTHERN 2021 US12189LAD38 4.100 350 0 350 102.966 360,380.64 1.27DAIMLER FIN.N.A.2020 144A US233851DG63 3.100 500 0 500 100.284 501,420.79 1.77ENTERPR.PRODS OP. 2022 US29379VAU70 4.050 0 0 200 103.307 206,614.24 0.73ERP OPERATING 2020 US26884AAY91 4.750 400 0 400 101.944 407,776.43 1.44EXELON GENERAT. 2019 US30161MAF05 5.200 0 0 500 101.500 507,500.00 1.79FISERV 15/20 US337738AN81 2.700 200 0 200 100.114 200,227.83 0.71FRST TENNESSEE BK 2019 US337158AF66 2.950 0 0 600 100.160 600,960.00 2.13JOHN DEERE C 19/20 FLRMTN US24422EUN74 3.004 400 0 400 100.394 401,574.80 1.42NIAGARA MOHAWK PWR 2019 US65364UAA43 4.881 0 0 300 100.402 301,206.00 1.07WRIGLEY -WM- JR.2020 144A US982526AQ87 3.375 600 0 600 100.838 605,029.82 2.14

Total issue country USA 4,339,415.55 15.35Total bonds denominated in USD 8,092,901.45 28.62

Total publicly traded securities 8,092,901.45 28.62

Securities admitted to organised markets


Issue country Australia

COMMONW.BK AUSTR09/19REGS US2027A1DJ35 5.000 250 0 250 100.920 252,300.00 0.89MACQUARIE GRP 2024 FLRMTN US55608JAM09 3.959 0 0 600 99.820 598,920.00 2.12WESTPAC BKG 09/19 US961214BK83 4.875 300 0 300 101.156 303,468.00 1.07WESTPAC BKG 17/22 FLR US961214DR19 3.307 300 0 300 100.575 301,725.00 1.07

Total issue country Australia 1,456,413.00 5.15

Issue country Chile

ITAU CORPBANCA 14/19 REGS USP3143KEZ95 3.875 0 0 300 100.375 301,125.00 1.06Total issue country Chile 301,125.00 1.06

Issue country Great Britain

SANTANDER UK 18/21FLR US80283LAU70 3.140 0 0 500 100.137 500,685.00 1.77Total issue country Great Britain 500,685.00 1.77

Issue country Canada

BK MONTREAL 18/21 FLR MTN US06367T4X54 3.057 0 0 800 100.370 802,960.00 2.84ROYAL BK CDA 18/21FLR MTN US78013XKH07 2.973 0 0 500 100.253 501,265.00 1.77

Total issue country Canada 1,304,225.00 4.61


ING BK NV 11/21 REGS USN4578BQA53 5.000 500 0 500 104.630 523,150.00 1.85Total issue country Netherlands 523,150.00 1.85

ESPA RESERVE DOLLAR

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Interestrate

Issue country Peru

BCO CRED.DEL PERU 10/20 USP09646AC75 5.375 230 0 230 103.125 237,187.50 0.84Total issue country Peru 237,187.50 0.84

Issue country Switzerland

CS N.Y.BR. 2010 US22546QAF46 4.375 1,000 500 500 102.119 510,596.81 1.81Total issue country Switzerland 510,596.81 1.81

Issue country Spain

BCO SANTANDER 18/23 FLR US05964HAH84 3.724 0 0 600 98.934 593,604.00 2.10Total issue country Spain 593,604.00 2.10

Issue country USA

AMAZON.COM 14/21 US023135AM87 3.300 500 0 500 102.087 510,432.78 1.81ANTHEM 14/19 US94973VBH96 2.250 300 0 300 98.800 296,400.00 1.05APPLE 16/21 US037833BS85 2.250 800 0 800 99.975 799,803.83 2.83BANK AMERI. 18/26 FLR MTN US06051GHB86 3.335 0 0 500 98.530 492,649.00 1.74BANK AMERI. 2021 FLR MTN US06051GGP81 2.369 500 0 500 99.684 498,417.93 1.76BECTON,DICKINS. 10/20 US075887AW93 3.250 0 0 200 100.684 201,367.55 0.71CATERP.F.SV. 19/20 FLRMTN US14913Q2U23 2.896 500 0 500 100.112 500,560.00 1.77CHEVRON 13/20 US166764AG56 2.427 400 0 400 100.034 400,135.59 1.42CISCO SYSTEMS 2020 US17275RAH57 4.450 500 0 500 101.095 505,475.00 1.79DISNEY(WALT) 2020 FLR MTN US25468PDT03 2.669 500 0 500 99.960 499,800.00 1.77DOW CHEM. 10/20 US260543CC57 4.250 200 0 200 101.888 203,775.30 0.72ENTERPR.PRODS OP. 2020 US29379VAP85 5.200 500 0 500 103.166 515,830.27 1.82GOLDMAN S.GRP 2023FLR MTN US38141EB818 4.125 500 0 500 102.321 511,603.88 1.81GOLDMAN SACHS 17/22 FLR US38141GWD23 3.696 0 0 500 100.809 504,046.56 1.78HOME DEPOT INC. 14/19 US437076BE14 2.000 300 0 300 99.963 299,889.00 1.06INTL BUS. MACH. 17/20 FLR US459200JP73 2.812 500 0 500 99.910 499,550.00 1.77KRAFT HEINZ FOODS 2021 US50077LAP13 3.115 0 0 800 99.981 799,849.12 2.83MCDONALDS CORP. 2022 MTN US58013MEM29 2.625 200 0 200 100.196 200,391.92 0.71METLIFE INC 2021 US59156RAX61 4.750 2 0 2 103.604 2,072.09 0.01MORGAN STANLEY 2021 US61747WAF68 5.750 0 0 500 104.866 524,331.86 1.85PHILIP MORRIS INTL 17/20 US718172BY40 2.942 500 0 500 99.820 499,100.00 1.77REYNOLDS AMERIC. 15/20 US761713BE57 3.250 0 0 250 100.477 251,193.41 0.89SCRIPPS NETW.INT. 15/20 US811065AE14 2.800 0 0 540 99.397 536,743.80 1.90THERMO FISH.SCI. 2021 US883556AX08 4.500 100 0 100 103.068 103,068.02 0.36UNITEDHEALTH GRP 15/20 US91324PCM23 2.700 500 0 500 100.224 501,120.72 1.77VOLKSW.GRP AM. 18/21 FLR USU9273ACF04 3.475 500 0 500 100.460 502,300.00 1.78

Total issue country USA 11,159,907.63 39.47

Issue country British Virgin Islands

CNPC GENL CAP. 14/19 XS1143081963 2.700 0 0 500 100.038 500,192.35 1.77Total issue country British Virgin Islands 500,192.35 1.77

Total bonds denominated in USD 17,087,086.29 60.43Total securities admitted to organised markets 17,087,086.29 60.43

17




Interestrate

Unlisted securities


Issue country Australia

COMMONW.BK AUSTR.2019 FLR US2027A0HL61 3.158 0 0 300 100.128 300,384.00 1.06NATL AUSTR.BK 2022 FLRMTN US6325C0DQ11 3.243 500 0 500 100.646 503,230.00 1.78

Total issue country Australia 803,614.00 2.84


BPCE S.A. 18/23 FLR MTN US05584KAD00 3.837 600 0 600 100.313 601,878.00 2.13Total issue country France 601,878.00 2.13


RABOBK NEDERLD 18/23 FLR US74977SDD18 3.470 750 0 750 99.818 748,635.00 2.65Total issue country Netherlands 748,635.00 2.65

Issue country USA

PNC BANK 17/22 FLR MTN US69353RFF01 3.082 500 0 500 100.199 500,995.00 1.77Total issue country USA 500,995.00 1.77

Total bonds denominated in USD 2,655,122.00 9.39Total unlisted securities 2,655,122.00 9.39

ESPA RESERVE DOLLAR

18

The fund is not permitted to engage in securities lending agreements pursuant to Regulation (EU) No. 2015/2365 (Regulation on Transparency of Securities Financing Transactions and of Reuse). For this reason, securities lending agreements were not employed.

The fund is not permitted to engage in repurchase agreements pursuant to Regulation (EU) No. 2015/2365 (Regulation on Transparency of Securities Financing Transactions and of Reuse). For this reason, repurchase agreements were not employed.

The fund is not permitted to engage in total return swaps pursuant to Regulation (EU) No. 2015/2365 (Regulation on Transparency of Securities Financing Transactions and of Reuse). For this reason, total return swaps were not employed.

Breakdown of fund assets

Transferable securities 27,835,109.74 98.44Bank balances 225,752.10 0.80Interest entitlements 214,586.97 0.76Other deferred items -340.15 - 0.00Fund assets 28,275,108.66 100.00

Dividend-bearing units outstanding AT0000825187 units 72,185.000Value of dividend-bearing unit AT0000825187 USD 96.43

Dividend-bearing units outstanding AT0000627203 units 21,987.302Value of dividend-bearing unit AT0000627203 EUR 86.57

Dividend-bearing units outstanding AT0000A1YF74 units 0.000

Value of dividend-bearing unit AT0000A1YF74 USD 102.20

Dividend-bearing units outstanding AT0000A1YF66 units 0.000Value of dividend-bearing unit AT0000A1YF66 EUR 91.71

Non-dividend-bearing units outstanding AT0000809140 units 39,818.390Value of non-dividend-bearing unit AT0000809140 USD 133.01

Non-dividend-bearing units outstanding AT0000627211 units 33,572.328Value of non-dividend-bearing unit AT0000627211 EUR 119.57

Non-dividend-bearing units outstanding AT0000A1YF90 units 0.000Value of non-dividend-bearing unit AT0000A1YF90 USD 102.20

Non-dividend-bearing units outstanding AT0000A1YF82 units 0.000Value of non-dividend-bearing unit AT0000A1YF82 EUR 91.73

KEST-exempt non-dividend-bearing units outstanding AT0000673249 units 15,615.446Value of KEST-exempt non-dividend-bearing unit AT0000673249 USD 140.91

KEST-exempt non-dividend-bearing units outstanding AT0000A0C8W9 units 22,630.000Value of KEST-exempt non-dividend-bearing unit AT0000A0C8W9 EUR 126.49

KEST-exempt non-dividend-bearing units outstanding AT0000A1YFB5 units 39,326.937

KEST-exempt non-dividend-bearing units outstanding AT0000A1YFB5 USD 102.51

KEST-exempt non-dividend-bearing units outstanding AT0000A1YFA7 units 0.000Value of KEST-exempt non-dividend-bearing unit AT0000A1YFA7 EUR 91.78

19


Purchases and sales of transferable securities in the reporting period not listed in the statement of assets and liabilities

Investor note:

The values of assets in illiquid markets may deviate from their actual selling prices.

Explanation on disclosure pursuant to the Delegated Regulation (EU) No. 2016/2251 supplementing Regulation (EU) No. 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories with regard to regulatory technical standards for risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty:

All OTC derivatives are traded through Erste Group Bank AG.

Collateral in the form of cash or bonds is pledged to Erste Group Bank AG in the amount of the negative exposure of the derivatives.

EUR-denominated government bonds from the Republic of Austria and/or the Federal Republic of Germany are pledged by Erste Group Bank AG to the fund in the amount of the positive exposure of the derivatives. A one-time discount of 4% is agreed with the counterparty for this collateral. Collateral that would require a higher discount pursuant to Annex II to the Delegated Regulation (EU) No. 2016/2251 is not accepted.

Security designation ISIN Purch./ Sales/

number additions disposals

Units/nominal (nom. in 1,000, rounded)

Publicly traded securities



ORANGE 14/19 US685218AA79 2.750 0 500


HSBC BANK 2021 144A US44328MAK09 4.750 500 500


ING BK NV 14/19 FLR REGS USN45780CV83 3.282 0 800

Issue country USA

ANADARKO PET. 2019 US032511BF31 6.950 0 200BUCKEYE PARTNERS 2018 US118230AL56 2.650 0 500CHEVRON 09/19 US166751AJ66 4.950 0 500HARLEY DAV.FIN.S. 2019 US41283LAD73 2.400 0 500MORGAN STANLEY 2019 FLR US61746BDN38 3.337 0 500

Interestrate

ESPA RESERVE DOLLAR

20




Interestrate

PHILIP MORRIS INTL 13/19 US718172BF50 1.875 500 500PRUDENTIAL FINL 2020 MTN US74432QBP90 4.500 500 500TOYOTA MOTOR CRD 13/18MTN US89236TAY10 2.000 0 300VALERO ENERGY CORP. 2020 US91913YAR18 6.125 500 500

Securities admitted to organised markets



ALIBABA GR.HLDG 2019 US01609WAC64 2.500 600 600

Issue country Canada

TORONTO-DOM. BK 14/19 FLR US89114QAT58 3.040 0 500

Issue country Switzerland

UBS (STAMFORD BR.) 2019 US90261XHE58 2.375 0 500

Issue country USA

B.A.T. CAP.17/22 REGS FLR USU05526AH81 3.398 0 250EBAY 14/19 FLR US278642AJ21 3.059 0 300GOLDM.S.GRP 2020 MTN US38141EA661 6.000 500 500INTEL CORP. 15/20 US458140AQ35 2.450 500 500JPMORGAN CHASE 2020 US46625HHQ65 4.950 700 700TYSON FOODS 2019 US902494AW36 2.650 0 700US TREASURY 2020 US912828VJ67 1.875 2,000 2,000USA 18/20 US9128285S51 2.500 2,000 2,000WELLS FARGO 2020 MTN US94974BGM63 2.600 500 500

Unlisted securities



TENCENT HLDGS 2019 MTN US88032WAB28 3.375 0 1,000


BP CAP.MKTS 09/19 US05565QBJ67 4.750 700 1,000BRIT. TELECOMM. 14/19 US111021AK71 2.350 0 800

Issue country Jersey

APTIV 15/20 US03835VAA44 3.150 0 500

21


Vienna, 15 July 2019

Erste Asset Management GmbHElectronically signed

Inspection information: The electronic signatures in this document can be inspected at www.signaturpruefung.gv.at.Note: This document was signed with two qualified electronic signatures. A qualified electronic signature fulfils

the legal requirements of a hand-written signature, and in particular the requirements of the written form as defined in § 886 ABGB (§ 4 (1) Austrian Signature Act [Signaturgesetz]).




Interestrate

Issue country USA

21ST CENTURY FOX AM.09/19 US90131HAN52 6.900 0 500BANK AMERI. 07/19 US060505DB73 5.490 100 100BB+T 2019 MTN US05531FAQ63 2.250 0 250CITIGROUP INC 2019 FLR US172967HN46 3.574 0 500FEDEX CORP. 2019 US31428XAR70 8.000 0 300GM FINANCIAL 2019 US37045XBB10 3.100 0 500MICROSOFT 13/18 US594918AV63 1.625 0 300MONDELEZ INTL 14/19 FLR US609207AC96 3.061 0 500SEMPRA ENERGY 08/19 US816851AK54 9.800 0 500SIMON PROP.GRP 14/19 US828807CQ80 2.200 500 500

ESPA RESERVE DOLLAR

22

Remuneration PolicyRemuneration paid to employees of Erste Asset Management GmbH in EUR (2017 financial year of Erste Asset Management GmbH)

No investment success bonuses are paid, and no other amounts are paid directly from the investment funds.

Number of employees as of 31.12.17 83 Number of risk bearers as of 31.12.17 45

Fixed remuneration 6,255,431

Variable remuneration (bonuses) 1,931,863

Total employee remuneration 8,187,294

Thereof remuneration for managing directors 668,440

Thereof remuneration for managers and risk bearers 160,215

Thereof remuneration for risk bearers with control functions 409,883

Thereof remuneration for other risk bearers 4,136,628

Thereof remuneration for employees in the same income bracket as managers and risk bearers due to the amount of their total remuneration 0

Total remuneration for risk bearers 5,375,166

Principles governing performance-based remuneration components

The Management Company has adopted remuneration principles to prevent possible conflicts of interest and to ensure compliance with the standard rules of conduct when awarding remuneration to relevant persons.

Fixed salary components make up a large enough share of the total remuneration of all employees of the Management Company that a variable remuneration policy can be applied on an individualised basis.

The total remuneration (fixed and variable components) is governed by the principle of balance and is linked to sustainability so that the acceptance of excessive risks is not rewarded. Therefore, the variable remuneration forms no more than a balanced portion of the total remuneration awarded to an employee.

The performance-based remuneration components serve the short-term and long-term interests of the Management Company and contribute to preventing risky behaviour. The performance-based remuneration components take into account individual performance as well as the profitability of the Management Company.The size of the bonus pool is calculated based on the bonus potential that can be applied to the different employee categories. Bonus potential is a percentage of the fixed annual gross remuneration. The bonus potential can be no more than 100% of the fixed annual gross remuneration. The bonus pool is adjusted depending on the success of the Management Company. The personal bonus is linked to individual performance. The total of personal bonuses is limited by the size of the bonus pool after deduction of penalties.

23


The performance-based payments are capped at 100% of the annual gross remuneration for all employees, including the material risk bearers (according to the definition in the remuneration policy) and managing directors of the Management Company.

The remuneration system is made up of three components:

1) Fixed remuneration2) Variable remuneration 3) Fringe benefits

The bonus potential is based on the fixed annual gross remuneration. The target agreements concluded with the employees contain qualitative and/or quantitative objectives. The payment of performance-based remuneration components is subject to a minimum profitability level for the Management Company and to performance targets.

Sixty per cent of the performance-based remuneration components are paid immediately; for employees who are involved directly in fund and portfolio management, 50% of this is paid immediately in cash and 50% is paid one year later in the form of non-cash instruments. The remaining 40% of the performance-based remuneration components are retained and paid out over a period of three years, with 50% of this also being paid in cash and 50% in the form of non-cash instruments for employees who are involved directly in fund and portfolio management. The non-cash instruments can consist of units in an investment fund that is administered by the Management Company, equivalent holdings or instruments linked to units, or equivalent non-cash instruments. Based on the principle of proportionality, the Management Company has set a materiality threshold below which there is no incentive to enter into inappropriate risks, for which reason there is no need to make delayed payment or payment in the form of a non-cash instrument. Other non-cash benefits are fringe benefits that are not associated with performance but with a specific position (e.g. company car) or that apply for all employees (e.g. holiday).

The Supervisory Board of the Management Company has set up a Remuneration Committee to ensure that the remuneration policy and its application are independently assessed. This committee consists of the following persons: Rudolf Sagmeister, Harald Gasser (remuneration expert), and Heinrich Hubert Reiner.

The complete remuneration policy of the Management Company can be viewed at http://www.erste-am.at/de/private_anleger/wer-sind-wir/investmentprozess.

The last audit of compliance with the requirements of the remuneration policy by the Supervisory Board on 3 April 2019 revealed no deviations. There were also no material findings during the last audit by the Internal Auditing department.

No material changes were made to the remuneration policy during the past accounting year.

ESPA RESERVE DOLLAR

24

Remuneration paid to employees of ERSTE-SPARINVEST KAG in EUR (2017 financial year of ERSTE-SPARINVEST KAG)

No investment success bonuses are paid, and no other amounts are paid directly from the investment funds.

Number of employees as of 31.12.17 148 Number of risk bearers as of 31.12.17 60

Fixed remuneration 11,990,882

Variable remuneration (bonuses) 3,065,433

Total employee remuneration 15,056,315

Thereof remuneration for managing directors 1,540,398

Thereof remuneration for managers and risk bearers 918,143

Thereof remuneration for risk bearers with control functions* 1,111,224

Thereof remuneration for other risk bearers 5,430,036

Thereof remuneration for employees in the same income bracket as managers and risk bearers due to the amount of their total remuneration 0

Total remuneration for risk bearers 8,999,801 * Includes the Head of Compliance

Principles governing performance-based remuneration components

The Management Company has adopted remuneration principles to prevent possible conflicts of interest and to ensure compliance with the standard rules of conduct when awarding remuneration to relevant persons.

Fixed salary components make up a large enough share of the total remuneration of all employees of the Management Company that a variable remuneration policy can be applied on an individualised basis.

The total remuneration (fixed and variable components) is governed by the principle of balance and is linked to sustainability so that the acceptance of excessive risks is not rewarded. Therefore, the variable remuneration forms no more than a balanced portion of the total remuneration awarded to an employee.

The performance-based remuneration components serve the short-term and long-term interests of the Management Company and contribute to preventing risky behaviour. The performance-based remuneration components take into account individual performance as well as the profitability of the Management Company.The size of the bonus pool is calculated based on the bonus potential that can be applied to the different employee categories. Bonus potential is a percentage of the fixed annual gross remuneration. The bonus potential can be no more than 100% of the fixed annual gross remuneration. The bonus pool is adjusted depending on the success of the Management Company. The personal bonus is linked to individual performance. The total of personal bonuses is limited by the size of the bonus pool after deduction of penalties.

25


The performance-based payments are capped at 100% of the annual gross remuneration for all employees, including the material risk bearers (according to the definition in the remuneration policy) and managing directors of the Management Company.

The remuneration system is made up of three components:

1) Fixed remuneration2) Variable remuneration 3) Fringe benefits

The bonus potential is based on the fixed annual gross remuneration. The target agreements concluded with the employees contain qualitative and/or quantitative objectives. The qualitative objectives must make up at least 25%. The payment of performance-based remuneration components is subject to a minimum profitability level for the Management Company and to performance targets.

Sixty per cent of the performance-based remuneration components are paid immediately; for employees who are involved directly in fund and portfolio management, 50% of this is paid immediately in cash and 50% is paid one year later in the form of non-cash instruments. The remaining 40% of the performance-based remuneration components are retained and paid out over a period of three years, with 50% of this also being paid in cash and 50% in the form of non-cash instruments for employees who are involved directly in fund and portfolio management. The non-cash instruments can consist of units in an investment fund that is administered by the Management Company, equivalent holdings or instruments linked to units, or equivalent non-cash instruments. Based on the principle of proportionality, the Management Company has set a materiality threshold below which there is no incentive to enter into inappropriate risks, for which reason there is no need to make delayed payment or payment in the form of a non-cash instrument. Other non-cash benefits are fringe benefits that are not associated with performance but with a specific position (e.g. company car) or that apply for all employees (e.g. holiday).

The Supervisory Board of the Management Company has set up a Remuneration Committee to ensure that the remuneration policy and its application are independently assessed. This committee consists of the following persons: Rudolf Sagmeister (remuneration expert), Franz-Nikolaus Hörmann, and Heinrich Hubert Reiner.

The complete remuneration policy of the Management Company can be viewed at http://www.erste-am.at/de/private_anleger/wer-sind-wir/investmentprozess.

The last audit of compliance with the requirements of the remuneration policy by the Supervisory Board on 4 April 2018 revealed no deviations. There were also no material findings during the last audit by the Internal Auditing department.

No material changes were made to the remuneration policy during the past accounting year.

ESPA RESERVE DOLLAR

26

Audit Report*

Statement on the annual report

Audit opinion

We have audited the annual report prepared by Erste Asset Management GmbH, Vienna, for the fund under its management

ESPA RESERVE DOLLARJointly owned fund pursuant to the InvFG

consisting of the fund portfolio as of 31 May 2019, the income statement for the financial year ending on this date, and the other information specified in Annex I Scheme B of the Austrian Investment Fund Act 2011 (InvFG 2011).

Based on the findings of our audit, we believe that the annual report satisfies the legal requirements and provides a true and fair view of the assets and financial position as of 31 May 2019 and of the earnings position of the fund for the financial year ending on this date in accordance with Austrian commercial law and the provisions of the InvFG 2011.

Basis for the audit opinion

We conducted our audit in accordance with § 49 (5) InvFG 2011 and in accordance with the Austrian principles of good auditing. These principles require the application of the International Standards on Auditing (ISA). Our responsibilities under these regulations and standards are described in the section "Responsibilities of the auditor in auditing the annual report" of our audit report. We are independent from the company as specified by the Austrian commercial and industry regulations and fulfilled our other professional obligations in accordance with these requirements. We feel that the audit evidence that we obtained is sufficient and suitable to serve as a basis for our audit opinion. Management and supervisory board responsibilities relating to the annual report

The legal representatives are responsible for preparing the annual report and for ensuring that this report provides a true and fair view of the assets and financial and earnings position of the fund in accordance with Austrian commercial law and the provisions of the InvFG 2011. The legal representatives are also responsible for implementing the internal controls that they deem necessary to facilitate the preparation of an annual report that is free from material misstatements due to error or fraud.

The supervisory board is responsible for monitoring the accounting process of the company as it applies to the fund under its management.

27


Responsibilities of the auditor in auditing the annual report

Our goals are to ascertain with sufficient certainty whether the annual report contains material misstatements due to error or fraud and to issue an audit report that includes our audit opinion. Sufficient certainty is a high degree of certainty but no guarantee that an audit conducted in accordance with the Austrian standards on good auditing, which require the application of the ISA, will always discover material misstatements that may be present. Misstatements can result from fraud or errors and are considered to be material when it can be reasonably expected that individual misstatements or a combination of misstatements can influence economic decisions made by readers on the basis of this annual report.

As part of an audit conducted in accordance with the Austrian standards on good auditing, which require the application of the ISA, we exercise professional judgement and maintain professional scepticism during the entire audit process. In addition:

— We identify and assess the risks of material misstatements in the annual report due to error or fraud, plan audit steps in response to these risks, perform the planned audit steps, and collect audit evidence that is sufficient and suitable to form a basis for our audit opinion. The risk that a material misstatement resulting from fraud will remain undiscovered is greater than for misstatements resulting from error because fraudulent activity can include collusion, the falsification of documents, intentional incomplete or misleading representations, and the circumvention of internal controls.

— We familiarise ourselves with the internal control systems that are relevant for the audit to plan audit steps that are appropriate under the specific circumstances, but not so as to state an opinion on the effectiveness of the company’s internal control system.

— We assess the appropriateness of the accounting methods applied by the legal representatives and the reasonableness of the estimates made by the legal representatives in the accounts and of the associated information.

— We assess the overall presentation, the structure, and the content of the annual report including the figures as well as whether the annual report depicts the underlying transactions and events in a manner that provides a true and fair view.

— We discuss the planned scope and scheduling of the audit and any material audit findings, including material defects that we discover in the internal control system during our audit, with the supervisory board, among other issues.

ESPA RESERVE DOLLAR

28

Other information

The legal representatives are responsible for the other information. The other information includes all information in the annual report except for the statement of assets and liabilities, the income statement, the other information specified in Annex I Schedule B of the InvFG 2011, and the audit report.

Our audit opinion does not cover this other information, and we provide no assurance whatsoever for this other information.

In connection with our audit of the annual report, it is our responsibility to read this other information and to consider whether there are material discrepancies between the other information and the annual report or the information gathered by us during our audit, or if this other information appears materially incorrect in some other manner. If we come to the conclusion on the basis of our audit steps that the other information is materially incorrect, we are obligated to report this. We have nothing to report in this regard.

Vienna, 15 July 2019

Ernst & YoungWirtschaftsprüfungsgesellschaft m.b.H.

Mag. Andrea Stippl ppa MMag. Roland Unterweger(Certified Public

Accountant)(Certified Public Accountant)

* In the case of the publication or dissemination of the annual report in a form that deviates from the confirmed (unabridged German) version (e.g. an abridged version or translation), reference may not be made to the audit report or our audit without our approval.

29


Fund Rules for ESPA RESERVE DOLLARJointly owned fund pursuant to the InvFG

The Fund Rules for ESPA RESERVE DOLLAR, jointly owned fund pursuant to the Austrian Investment Fund Act (Investmentfondsgesetz; InvFG) 2011 as amended, were approved by the Austrian Financial Market Authority (FMA).

The Fund is an undertaking for the collective investment of transferable securities (UCITS) and is managed by Erste Asset Management GmbH (the “Management Company” in the following), which has its registered office in Vienna.

Article 1Fund Units

The joint ownership of the fund assets is evidenced by certificates having the characteristics of a bearer unit.

The unit certificates are depicted in global certificates for each unit category. For this reason, individual unit certificates cannot be issued.

Article 2Depositary Bank (Depositary)

The depositary bank (depositary) appointed for the Fund is Erste Group Bank AG, Vienna.

The payment offices for unit certificates are the depositary bank (depositary) and any other payment offices named in the prospectus.

Article 3Investment Instruments and Principles

The following assets may be selected for the Fund in accordance with the InvFG.

The Fund invests predominantly, in other words at least 51% of its assets, in USD-denominated

- Money market instruments,- Variable-income credit institution bonds, with no geographical restrictions in terms of issuer registered office,- Fixed-income credit institution bonds with a short remaining term to maturity (less than 397 days), with no geographical restrictions in

terms of issuer registered office, government bonds from issuers registered in the USA, and- Bonds issued or guaranteed by public international bodies and to which one or more Member States belong,

that are purchased directly in the form of individual securities, in other words not indirectly or directly through investment funds or through derivatives.

In addition, the Fund may invest in USD-denominated corporate bonds issued by entities registered in Europe, but the bonds must be in the investment grade (or other comparable) segment in terms of ratings assigned by recognised rating agencies; there are no restrictions with regard to the location of the issuer registered office and no restrictions with regard to the economic sector in which the issuer is active.

High yield bonds may not be purchased.

The fund assets are invested in the following instruments in accordance with the investment focus described above.

a) Transferable securities

Transferable securities (including securities with embedded derivative financial instruments) comprise up to 49% of the fund assets.

b) Money market instruments

Money market instruments comprise at least 51% of the fund assets.

c) Transferable securities and money market instruments

Transferable securities or money market instruments issued or guaranteed by the United States of America may make up more than 35% of the fund assets provided that the fund assets are invested in at least six different instruments, but an investment in one instrument may not make up more than 30% of the total fund assets.

Transferable securities and money market instruments may only be purchased for the Fund when they meet the criteria regarding listing or trading on a regulated market or a securities exchange pursuant to the InvFG.

Transferable securities and money market instruments that do not meet the criteria described in the previous paragraph may comprise up to 10% of the fund assets in total.

ESPA RESERVE DOLLAR

30

d) Units in investment funds

Units in investment funds (UCITS, UCI) may comprise up to 10% of the fund assets per individual issue and may comprise up to 10% in aggregate total, provided that the target funds themselves (UCITS or UCI) do not invest more than 10% of their fund assets in units of other investment funds.

e) Derivative financial instruments

Derivative financial instruments can be used for hedging purposes and as part of the investment strategy, and may comprise up to 35% of the fund assets.

f) Risk measurement method(s) of the Fund

The Fund applies the following risk measurement methods: commitment approach

The commitment value is determined according to § 3 of the 4th FMA Regulation on Risk Calculation and Reporting of Derivative Instruments (4. Derivate-Risikoberechnungs- und MeldeV) as amended.

g) Demand deposits or deposits with the right to be withdrawn

Demand deposits and deposits with the right to be withdrawn with a maximum term of 12 months may comprise up to 49% of the fund assets.

There are no minimum bank balance requirements.

However, in the course of the restructuring of the fund portfolio and/or in the case of the justified expectation of impending losses experienced by money market instruments, the Fund can hold a lower proportion of money market instruments and a higher proportion of demand deposits or deposits with the right to be withdrawn with a maximum term of 12 months.

h) Acceptance of short-term loans

The Management Company may accept short-term loans for the account of the Fund up to an amount of 10% of the total fund assets.

i) Repurchase agreements

Does not apply.

j) Securities lending

Does not apply.

Investment instruments may only be purchased for the entire Fund and not for individual unit categories or groups of unit categories.

This does not apply to currency hedging transactions, however. Such transactions can also be concluded solely for a single unit category. Expenses and income resulting from currency hedging transactions shall be allocated solely to the respective unit category.

Article 4Issue and Redemption Procedure

The unit value shall be calculated in the currency of the respective unit category.

The unit value is calculated at the same time as the issue and redemption price.

Issue of units and front-end surcharge

The issue price will be calculated and units issued on each Austrian exchange trading day with the exception of bank holidays.

The issue price shall be made up of the unit value plus a surcharge per unit amounting to up to 1.0% to cover the costs incurred by the Management Company in issuing the unit, rounded up to the next equivalent sub-unit of the currency unit specified for the respective unit category in the prospectus.

The Management Company shall be entitled to apply a sliding front-end surcharge scale at its own discretion.

There is no limit on the issue of units in principle. However, the Management Company reserves the right to temporarily or permanently suspend the issue of unit certificates.

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Redemption of units and back-end commission

The redemption price will be calculated and units redeemed on each Austrian exchange trading day with the exception of bank holidays.

The redemption price is the unit value rounded down to the next equivalent sub-unit of the currency unit specified for the respective unit category in the prospectus. No back-end commission will be charged.

Upon request by the Unit-holder, his units shall be redeemed at the current redemption price in return for the unit certificate.

Article 5Accounting Year

The accounting year of the Fund is from 1 June to 31 May.

Article 6Unit Categories and Use of Earnings

The Fund features three different unit categories and the corresponding certificates: dividend-bearing units, non-dividend-bearing units with capital gains tax withholding, and non-dividend-bearing units without capital gains tax withholding, with certificates being issued for one unit each and also for fractional units.

Various unit categories may be issued for this Fund. The creation of unit categories and the issue of units of a specific category shall be decided at the discretion of the Management Company.

Use of earnings for dividend-bearing units

The earnings generated during the accounting year (interest and dividends) less all costs can be distributed as deemed appropriate by the Management Company. Dividend disbursement may be suspended in the interests of the Unit-holders. Dividends may also be disbursed at the discretion of the Management Company from earnings generated by the sale of fund assets, including subscription rights. Fund assets may be paid out in the form of dividends and interim dividends. The fund assets may in no case fall below the legally stipulated minimum volume for termination as a result of dividend disbursements.

The amounts shall be paid to the holders of dividend-bearing units on or after 15 July of the following accounting year. The remaining amount shall be carried forward.

An amount calculated in accordance with the InvFG must also be paid out on or after 15 July to cover the capital gains tax assessed by the tax authorities on the dividend-equivalent earnings from the fund units unless the Management Company provides suitable proof from the banks managing the corresponding securities accounts that the unit certificates can only be held by Unit-holders who are not subject to Austrian personal or corporate income tax or who meet the conditions for exemption from capital gains tax according to § 94 of the Austrian Income Tax Act (Einkommensteuergesetz) at the time of payment.

Use of earnings for non-dividend-bearing units with capital gains tax withholding

The earnings generated by the Fund during the accounting year less all costs will not be paid out. In the case of non-dividend-bearing units, an amount calculated in accordance with the InvFG must be paid out on or after 15 July to cover the capital gains tax assessed by the tax authorities on the dividend-equivalent earnings from the fund units unless the Management Company provides suitable proof from the banks managing the corresponding securities accounts that the unit certificates can only be held by Unit-holders who are not subject to Austrian personal or corporate income tax or who meet the conditions for exemption from capital gains tax according to § 94 of the Austrian Income Tax Act (Einkommensteuergesetz) at the time of payment.

Use of earnings for non-dividend-bearing units without capital gains tax withholding (KESt-exempt non-dividend domestic and foreign unit category)

The earnings generated by the Fund during the accounting year less all costs will not be paid out. No payment pursuant to the InvFG will be made. The reference date for the exemption from KESt payment for the profit for the year for the purposes of the InvFG is 15 July of the following accounting year.

The Management Company shall provide suitable proof from the banks managing the corresponding securities accounts that the unit certificates could only be held by Unit-holders who are not subject to Austrian personal or corporate income tax or who met the conditions for exemption from capital gains tax according to § 94 of the Austrian Income Tax Act (Einkommensteuergesetz) at the time of payment.

If these requirements are not met at the time of payment, the amount calculated pursuant to the InvFG must be paid out by the credit institution managing the respective securities account.

Article 7Management Fee, Compensation for Expenses, Liquidation Fee

The Management Company shall receive an annual fee for its administrative activities of up to 0.48% of the fund assets, which shall be accrued on a daily basis and calculated using the month-end values adjusted for the accrued fees.

ESPA RESERVE DOLLAR

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The Management Company shall be entitled to compensation for all expenses incurred in the administration of the Fund.

The Management Company shall be entitled to apply a sliding management fee scale at its own discretion.

The costs for the introduction of new unit categories for existing investment funds shall be assessed against the unit price of the new unit categories.

Upon liquidation of the Fund, the party processing the liquidation shall receive a fee in the amount of 0.5% of the fund assets.

Further information and details about this Fund can be found in the prospectus.

Annex to the Fund RulesList of exchanges with official trading and organised markets

(As of September 2018)

1. Exchanges with official trading and organised markets in the Member States of the EEA as well as exchanges in European countries outside of the EEA considered to be equivalent to regulated markets

Every Member State must maintain a current list of the authorised markets within its territory. This list must be submitted to the other Member States and the Commission.

According to this provision, the Commission is required to publish a list of the regulated markets registered with it by the Member States once per year.

Because of lower entry barriers and specialisation in different trading segments, the list of “regulated markets” is subject to significant changes. For this reason, the Commission will publish an up-to-date version of the list on its official website in addition to the annual publication of a list in the Official Journal of the European Union.

1.1. The currently valid list of regulated markets can be found at

https://registers.esma.europa.eu/publication/searchRegister?core=esma_registers_upreg *

1.2. The following exchanges are included in the list of regulated markets:

1.2.1 Luxembourg: Euro MTF Luxembourg1.2.2. Switzerland: SIX Swiss Exchange AG, BX Swiss AG

1.3. Recognised markets in the EEA according to § 67 (2) 2 InvFG:

Markets in the EEA that have been classified as recognised markets by the competent supervisory authorities.

2. Exchanges in European countries outside of the EEA

2.1. Bosnia and Herzegovina: Sarajevo, Banja Luka2.2. Montenegro: Podgorica2.3. Russia: Moscow (RTS Stock Exchange) Moscow Interbank Currency Exchange (MICEX)2.4. Serbia: Belgrade2.5. Turkey: Istanbul (only “National Market” on the stock market)

3. Exchanges in non-European countries

3.1. Australia: Sydney, Hobart, Melbourne, Perth3.2. Argentina: Buenos Aires3.3. Brazil: Rio de Janeiro, Sao Paulo3.4. Chile: Santiago3.5. China: Shanghai Stock Exchange, Shenzhen Stock Exchange3.6. Hong Kong: Hong Kong Stock Exchange3.7. India: Mumbai3.8. Indonesia: Jakarta3.9. Israel: Tel Aviv3.10. Japan: Tokyo, Osaka, Nagoya, Kyoto, Fukuoka, Niigata, Sapporo, Hiroshima3.11. Canada: Toronto, Vancouver, Montreal3.12. Colombia: Bolsa de Valores de Colombia3.13. Korea: Korea Exchange (Seoul, Busan)3.14. Malaysia: Kuala Lumpur, Bursa Malaysia Berhad

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3.15. Mexico: Mexico City3.16. New Zealand: Wellington, Christchurch/Invercargill, Auckland3.17 Peru: Bolsa de Valores de Lima3.18. Philippines: Manila3.19. Singapore: Singapore Stock Exchange3.20. South Africa: Johannesburg3.21. Taiwan: Taipei3.22. Thailand: Bangkok3.23. USA: New York, NYCE American, New York Stock Exchange (NYSE), Philadelphia, Chicago, Boston, Cincinnati3.24. Venezuela: Caracas3.25. United Arab Emirates: Abu Dhabi Securities Exchange (ADX)

4. Organised markets in countries outside of the European Community

4.1. Japan: over the counter market4.2. Canada: over the counter market4.3. Korea: over the counter market4.4. Switzerland: over the counter market of the members of the International Capital Market Association (ICMA),

Zurich 4.5. USA: over the counter market (under the supervision of an authority such as the SEC, FINRA, etc.)

5. Exchanges with futures and options markets

5.1. Argentina: Bolsa de Comercio de Buenos Aires5.2. Australia: Australian Options Market, Australian Securities Exchange (ASX)5.3. Brazil: Bolsa Brasiliera de Futuros, Bolsa de Mercadorias & Futuros, Rio de Janeiro Stock Exchange, Sao

Paulo Stock Exchange5.4. Hong Kong: Hong Kong Futures Exchange Ltd.5.5. Japan: Osaka Securities Exchange, Tokyo International Financial Futures Exchange, Tokyo Stock Exchange5.6. Canada: Montreal Exchange, Toronto Futures Exchange5.7. Korea: Korea Exchange (KRX)5.8. Mexico: Mercado Mexicano de Derivados5.9. New Zealand: New Zealand Futures & Options Exchange5.10. Philippines: Manila International Futures Exchange5.11. Singapore: The Singapore Exchange Limited (SGX)5.12. Slovakia: RM System Slovakia5.13. South Africa: Johannesburg Stock Exchange (JSE), South African Futures Exchange (SAFEX)5.14. Switzerland: EUREX5.15. Turkey: TurkDEX5.16. USA: NYCE American, Chicago Board Options Exchange, Chicago Board of Trade, Chicago Mercantile

Exchange, Comex, FINEX, ICE Future US Inc. New York, Nasdaq PHLX, New York Stock Exchange, Boston Options Exchange (BOX)

*) To open the list, select “Regulated market” under “Entity type” in the column on the left side of the page and then click “Search” (or “Show table columns” and “Update”). The link can be changed by the ESMA.

When the expected withdrawal of the United Kingdom of Great Britain and Northern Ireland (GB) from the EU takes effect, GB will lose its status as an EEA member state and, in turn, the exchanges/regulated markets located there will also lose their status as EEA exchanges/regulated markets. In this event, we hereby inform you that the following exchanges and regulated markets located in GB shall be considered exchanges or recognised regulated markets in a third country that are expressly designated in the Fund Rules as defined by the InvFG 2011 and the UCITS Directive: Cboe Europe Equities Regulated Market – Integrated Book Segment, London Metal Exchange, Cboe Europe Equities Regulated Market – Reference Price Book Segment, Cboe Europe Equities Regulated Market – Off-Book Segment, London Stock Exchange Regulated Market (derivatives), NEX Exchange Main Board (non-equity), London Stock Exchange Regulated Market, NEX Exchange Main Board (equity), Euronext London Regulated Market, ICE FUTURES EUROPE, ICE FUTURES EUROPE – AGRICULTURAL PRODUCTS DIVISION, ICE FUTURES EUROPE – FINANCIAL PRODUCTS DIVISION, ICE FUTURES EUROPE – EQUITY PRODUCTS DIVISION, and Gibraltar Stock Exchange.

Unless indicated otherwise, source: Erste Asset Management GmbH. Our languages of communication are German and English. Both the full prospectus and the simplified prospectus as well as the key investor information (and any applicable changes to these documents) were published in Amtsblatt zur Wiener Zeitung in accordance with the provisions of the InvFG 2011 in the currently amended version and are available for free at the registered office of the Investment Firm and at the head office of the depositary bank. The exact date of the most recent publication, the languages in which the simplified prospectus and the key investor information are available, and any additional locations where the documents can be obtained can be viewed on the website www.erste-am.at.

www.erste-am.comwww.erste-am.at

Note regarding the data used

The sections Income Statement and Changes in Fund Assets, Statement of Assets and Liabilities and Tax Treatment in this annual report were prepared on the basis of data from the depositary bank for the Fund.

The data and information provided by the depositary bank were collected with the greatest possible care and were checked solely for plausibility.

Documents

ESPA RESERVE DOLLAR - Erste Market · ESPA RESERVE DOLLAR 2 General Information about the Investment Firm The company Erste Asset Management GmbH Am Belvedere 1, A-1100 Vienna Telephone: