Oekoworld - Growing interest in its offering

ÖKOWORLD (ÖWAG) posted solid H120 results, which we believe may reflect, among other things, improving interest in its insurance brokerage business focused on pension products. Entering 2020, assets under management (AUM) of its fund managing subsidiary ÖKOWORLD LUX amounted to c €1.7bn then expanded to almost €2.0bn at end July 2020. While this has driven growth in its management fees, we assume the subsidiary earned limited (if any) performance fees in H120, as funds exceeded previous high-water marks for a short time only before the pandemic outbreak. However, we note that on the back of the strong rebound in broad equity markets in Q220, the fund performance recovered from the initial downturn in late Q120.