We have introduced new investment funds in Central and Eastern Europe, which we hope can open a new chapter in the regional asset management market. VIG Fund Management has always been open to introducing new structures during its 29 years of operation. It’s not different this time

When we launch a new investment fund, the market entry is always preceded by a multi-step deliberation process. As innovative market players, we aim to create a product that is as unique as possible. There are many traditional investment funds in the world that may often be a bit ‘boring.’ A great majority of these passively follow an index or benchmark with varying degrees of deviations.

In contrast, we advocate active asset management. We strive to create something that has not yet been seen in a given market; we like to create new products. Let there be a good story in the fund that both investors and salespeople can easily understand and that sparks their interest. Naturally, it should offer real return potential, as this may be one of the most important considerations for investors at the end of the day. It should offer an investment opportunity in an area where we are true experts. And it should be in harmony with the core values and business philosophy of VIG Asset Management and the international VIG group.

As innovative asset managers, we strive to adopt modern investment strategies. The novel investment strategy of VIG Active Beta is a rarity throughout Central and Eastern Europe. This factor-based investment fund follows an ‘intelligent beta’ strategy that meets the more current Western asset management standards and identifies more promising investments through mathematical algorithms. With this, we aim to achieve above-average risk-adjusted returns for both private and institutional investors.

Megatrend investments, such as the recently launched VIG InnovationTrend and SocialTrend funds are part of our unconventional investment strategies. Back in October 2018, we were the first in Hungary to launch a fund that invests in long-term processes that extend beyond normal economic cycles and typically concern global developments. Why is this area important? The world is subject to the necessity of renewal, exposed to innovations. The future is very likely not going to look like the past. Nothing is as certain as change. Irreversible processes are unfolding; technological development is set to fundamentally reshape the world even in the short term. Just consider the real possibilities and the hype surrounding artificial intelligence. The impact of demographic changes, on the other hand, will take longer to materialize.

Identifying these megatrends is an important factor in successful investments. It helps us understand the evolution of the investment environment in the next decade and beyond. It can steer us towards opportunities while distancing us from areas that may be adversely affected by these developments. Focusing on such profound changes in the economic and social environment contributes to ensuring that our investments at VIG Asset Management are sustainable and have a long lifespan.

When investing in targeted megatrends, we pay special attention to the so-called ESG [Environmental, Social, and Governance] factors. Companies that strive to achieve a high ESG score during their operations are more likely to be successful and benefit from the megatrends as well. Considering ESG factors is an important European value, which the entire VIG group is highly committed to. The soon-to-be-launched VIG GreenTrend equity and GreenBond bond funds, which support environmental sustainability, are expected to be classified as Article 9 funds. Article 9 funds (dark green) represent the highest level of sustainable investments, i.e. having a positive impact on the environment or society. We are pioneers in the issuance of such ‘dark green’ funds, as well as in cnsidering ESG factors: we were among the first in Hungary and the region to introduce an investment approach that focuses on sustainability. Our work in sustainable investments has been recognized twice in recent years with the ‘Domestic ESG Fund Manager of the Year’ award by Privtbankar.hu.

Over the past decades, we have received numerous prestigious awards. Our nearly 30-year-old company has won the Asset Manager of the Year’ award four times. Our goal is for VIG Asset Management to continue to operate as a true professional workshop, in line with its succesfull  past. Our operations and the achievement of our goals benefit greatly from a robust international backing: since November 2020, we have been part of the Vienna Insurance Group (VIG), based in Austria, which encompasses UNION and Alfa Insurance. We manage assets worth approximately 1,300 billion forints for a wide range of clients, both within and outside the corporate group. The Vienna Insurance Group, with its 200-year history, stands as the premier insurance group in Central and Eastern Europe. It serves a population of 180 million, it owns 50 companies across 30 countries, and employs about 29,000 people.