“Career with Children” New investment fund supports parents with respect to child care costs
With immediate effect, Erste Bank is offering a new, globally unique form of career-related investment. The “Fund of Excellence” investment fund with “Career with Children” invests in parents who want to make a career by taking over their child care costs. In return, the fund receives a share in the future income of the mother or father. Personality and good career prospects are decisive for the investment decision, collateral or the financial situation of the mother or father don't play a role.
The question “career or child?” shouldn't have to be answered by peeking into one's wallet.
According to Statistics Austria, looking after children or family members is the most common reason for the large number of Austrians working part-time (27.9%). “Many don't even want to make a career – this is perfectly legitimate. However, if someone wants to go for a career full time in spite of their care-giving duties, this shouldn't fall flat due to one's financial situation. To find solutions for this is our task as a bank”, explains Peter Bosek, member of the management board. Especially women are working part time: in 2014, 8 out of 10 part-time employees were female. According to a study by Erste Bank and Integral, 8 out of 10 Austrians are however convinced that part-time employees don't enjoy the same career opportunities as full-time employees. Almost a third of respondents don't believe that it is possible to have a career with a small child – mainly because there isn't sufficient time or because the pressure of combining care-giving with a job is too great. “Part-time work at the same time means that upon reaching retirement age, one's pension will be smaller”, says Natalie Corrales-Diez from Erste Bank's social banking department. 80% of Austrians are convinced that the provision of high quality and safe child care could help women with returning to full-time jobs more quickly.
“The idea is similar to funding a start-up: The financial backer invests in a project and in return participates in its success”, Peter Bosek explains. The fund invests in mothers or fathers, who cannot afford child care, but want to have a go at a full-time job. Preconditions for funding are good career prospects, personality and dedication. The possible size of the investment facility: up to EUR 500 per child and month of care. A surety or collateral aren't necessary. In return, the mother or father gives a share in their future income to the “Fund of Excellence” investment fund. The investment fund earns a percentage of the income agreed to beforehand over a predetermined time period. The agreement only comes into force once the sponsored individual earns a gross salary of more than 1,200 euro. If the income slips below 1,200 euro again, whether due to becoming unemployed or renewed paternal leave, the participation is suspended. The investment risk is ultimately borne by the investment fund “Career with a Child”, not by the sponsored individuals. The model is calculated individually, depending on the plans of the mother or father concerned, and is designed in line with the investment amount, industry, duration of the agreement, etc. The percentage share remains the same over the entire agreed upon time period. “The common goal of the sponsored individuals and the bank is that a good job with a good salary and salary increases will be the result”, as Corrales-Diez explains the product's aims.
“Career with a Child” is an alternative investment fund
The investment fund “Fund of Excellence” is registered as an alternative investment fund, with Erste Bank Oesterreich, Erste Stiftung (foundation) and Wiener Staedtische as shareholders. Risk management is ensured by diversification across a variety of sectors as well as a life insurance policy on the sponsored individuals. The share in salaries is flowing into the fund and is used for additional sponsorships.
Statistical facts about part-time work:
According to Statistics Austria, the labor force participation rate has increased over the past 10 years, especially among women (from 59% to 66%). At the same time the part-time rate has however increased as well, by 9% among women and 6% among men. In 2014, 8 out of 10 part-time employees were female. As a reason for working part-time, primarily women (38.1%) compared to men (with 3.8%) are stating that they have to fulfil care-giving responsibilities toward small children or other family members. According to Statistics Austria, in a European comparison Austria is one of the countries which have a high female labour force participation rate, but also a high part-time rate. In Finland, Germany, the Netherlands, Denmark and Sweden the labor force participation rate is higher. Only in Germany (47%) and the Netherlands (76.8%) were part-time rates even higher than in Austria (46.9%) - the European average stands at 32.9%.
The question “career or child?” shouldn't have to be answered by peeking into one's wallet.
According to Statistics Austria, looking after children or family members is the most common reason for the large number of Austrians working part-time (27.9%). “Many don't even want to make a career – this is perfectly legitimate. However, if someone wants to go for a career full time in spite of their care-giving duties, this shouldn't fall flat due to one's financial situation. To find solutions for this is our task as a bank”, explains Peter Bosek, member of the management board. Especially women are working part time: in 2014, 8 out of 10 part-time employees were female. According to a study by Erste Bank and Integral, 8 out of 10 Austrians are however convinced that part-time employees don't enjoy the same career opportunities as full-time employees. Almost a third of respondents don't believe that it is possible to have a career with a small child – mainly because there isn't sufficient time or because the pressure of combining care-giving with a job is too great. “Part-time work at the same time means that upon reaching retirement age, one's pension will be smaller”, says Natalie Corrales-Diez from Erste Bank's social banking department. 80% of Austrians are convinced that the provision of high quality and safe child care could help women with returning to full-time jobs more quickly.
“The idea is similar to funding a start-up: The financial backer invests in a project and in return participates in its success”, Peter Bosek explains. The fund invests in mothers or fathers, who cannot afford child care, but want to have a go at a full-time job. Preconditions for funding are good career prospects, personality and dedication. The possible size of the investment facility: up to EUR 500 per child and month of care. A surety or collateral aren't necessary. In return, the mother or father gives a share in their future income to the “Fund of Excellence” investment fund. The investment fund earns a percentage of the income agreed to beforehand over a predetermined time period. The agreement only comes into force once the sponsored individual earns a gross salary of more than 1,200 euro. If the income slips below 1,200 euro again, whether due to becoming unemployed or renewed paternal leave, the participation is suspended. The investment risk is ultimately borne by the investment fund “Career with a Child”, not by the sponsored individuals. The model is calculated individually, depending on the plans of the mother or father concerned, and is designed in line with the investment amount, industry, duration of the agreement, etc. The percentage share remains the same over the entire agreed upon time period. “The common goal of the sponsored individuals and the bank is that a good job with a good salary and salary increases will be the result”, as Corrales-Diez explains the product's aims.
“Career with a Child” is an alternative investment fund
The investment fund “Fund of Excellence” is registered as an alternative investment fund, with Erste Bank Oesterreich, Erste Stiftung (foundation) and Wiener Staedtische as shareholders. Risk management is ensured by diversification across a variety of sectors as well as a life insurance policy on the sponsored individuals. The share in salaries is flowing into the fund and is used for additional sponsorships.
Statistical facts about part-time work:
According to Statistics Austria, the labor force participation rate has increased over the past 10 years, especially among women (from 59% to 66%). At the same time the part-time rate has however increased as well, by 9% among women and 6% among men. In 2014, 8 out of 10 part-time employees were female. As a reason for working part-time, primarily women (38.1%) compared to men (with 3.8%) are stating that they have to fulfil care-giving responsibilities toward small children or other family members. According to Statistics Austria, in a European comparison Austria is one of the countries which have a high female labour force participation rate, but also a high part-time rate. In Finland, Germany, the Netherlands, Denmark and Sweden the labor force participation rate is higher. Only in Germany (47%) and the Netherlands (76.8%) were part-time rates even higher than in Austria (46.9%) - the European average stands at 32.9%.
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