Ab Artea Bankas · OMXVSE:ROE1L
Ab Artea Bankas — INVL Global Emerging Markets Bond Subfund — Debt Investor Presentation (June 2024)
20 slides from Ab Artea Bankas's debt investor presentation, June 2024
Slide 1: INVL Global Emerging Markets Bond Subfund
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Slide 2: Disclaimer
Disclaimer INVL Global Emerging Markets Bond Subfund (hereinafter — the Subfund) is a subfund of the open-ended harmonized investment fund INVL Umbrella Fund, managed by UAB ,,SB Asset Management" (hereinafter — the Management Company). The assets of the Subfund are invested in debt securities (bond
Slide 3: Important notice
INU Important notice The Subfund has not invested or had exposure to Russian or Belarussian bonds since mid-2021. The Subfund does not plan to invest in Russian or Belarussian bonds in the foreseeable future.
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Slide 5: Strategy
Strategy Focused Emerging Market government, quasi-sovereign and corporate bond TOP picks Objective: Strategy: maximization of risk-adjusted returns (Sharpe ratio) and minimization of drawdowns Focus on fundamentally strong hard-currency sovereign and corporate debt securities in Emerging Markets (c
Slide 6: Sources of alpha
Sources of alpha Exploiting off- benchmark opportunities Avoiding value- destructive positions and volatility from serial defaulters or local currencies Usage of arbitrage opportunities between single- issuer EUR and USD bonds Active participation in primary and secondary markets
Slide 7: Typical issuers that the Subfund is looking for: case study
Typical issuers that the Subfund is looking for: case study Globalworth: Poland Regional Poland Warsaw + Leading office investor and landlord in Central and Eastern Europe, with a portfolio of over 1.4 million sqm of assets: + Value of investment property at over 3 billion EUR; + Tenants mostly in P
Slide 8: Total return
Total return since 2018-12-31 Difference Argentina Government Bonds USD -17.8% -26.6% Sri Lanka Government Bonds USD -12.6% -21.4% Ecuador Government Bonds USD -38.8% -47.7% Aggregate Sovereigns USD 8.8% 40% 20% 0% Total return -20% -40% -60% -80% Bloomberg EM USD Aggregate: Sovereign Bloomberg EM U
Slide 9: Currency depreciation
40% TRY/EUR EGP/EUR BRL/EUR ARS/EUR 20% Currency depreciation 0% -20% -40% -60% -80% -100% 2018-12-28 2019-06-28 2019-12-28 2020-06-28 2020-12-28 2021-06-28 2021-12-28 2022-06-28 2022-12-28 2023-06-28 2023-12-28
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Slide 11: Portfolio breakdown by sector, maturity and country
Government Poland 4%4% Consumer Staples Romania 4% Lithuania 11% 34% Financials Colombia Mexico Energy Estonia 12% Real Estate Czech Republic Moldova Materials Brazil 14% 17% Consumer Discretionary Indonesia Côte d'Ivoire Other Macedonia 2% Latvia Paraguay 8% Dominican Republic South Africa < 1 year
Slide 12: YTM
10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 YTM
Slide 13: Top holdings
- Dominating shopping and entertainment center operator in the Baltics; AKRPLS 2 7/8 06/02/26 5.1% - Attractive around 6% YTW for BB+ rated less than 3Y duration issue; (Akropolis) - Conservative net LTV at 21% as of 2023 Q4. - EPH boasts a large and diversified European power generation fleet, EPEN
Slide 14: INVL Global Emerging Markets Bond Subfund vs Benchmark
30% INVL Global Emerging Markets Bond Subfund Benchmark 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% 2016-07 2017-07 2018-07 2019-07 2020-07 2021-07 2022-07 2023-07
Slide 15: Peer performance ranking
Since Funds YTD 2Y 3Y 5Y 2016.07.01 INVL Global Emerging Markets Bond Fund Performance 4.5% 19.0% -0.4% 6.4% 22.9% No. of competitors 115 115 115 115 115 Ranking 8 10 5 3 3 Quartile 1 1 1 1 1 Since Max DD in 3 Funds YTD 2Y 3Y 5Y 3Y Sortino 2016.07.01 years Peer #1 6.2% 24.7% -0.6% 9.9% 31.3% - 0.10
Slide 16: Economic growth and demographic advantage
Economic growth Demographic advantage advantage over developing markets Annual an WVorking age population growth 2022 PsP : 2017-2021. 2020 Projected 2050 DM 0.8 bn 07 bn Source: World bank Lower public debt levels Higher potential and attractive vields YTM % (in USD) EM Source: IMF ehiceisage eB ee
Slide 17: Summary
Asset class Investment in regions that stand out in their rapid economic and population growth while debt levels are reasonably low Summary eral Team Experienced team with solid track record in very active management of Emerging Markets bonds and equities. Strategy A proven strategy of bottom-up bon
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Slide 19: ESG integration (Article under SFDR)
ESG integration (Article 6 under SFDR) INL xt “Avoid” approach with focus on downside risks Two main ESG strategies used across fixed income strategies: Negative / exclusionary screening * No involvement / significant income from weapon production and sales, tobacco, alcohol, gambling, pornography s
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