Ab Artea Bankas · OMXVSE:ROE1L
Ab Artea Bankas — INVL Global Emerging Markets Bond Subfund — Debt Investor Presentation (March 2025)
19 slides from Ab Artea Bankas's debt investor presentation, March 2025
Slide 1: INVL Global Emerging Markets Bond Subfund
B SIAULIY nu]X€p savas | INVL Global Emerging Markets Bond Subfund = Spel vo a a wT 2
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: Slide 3
Slide 4: Strategy
Strategy Focused Emerging Market government, quasi-sovereign and corporate bond TOP picks Objective: Strategy: - Focus on fundamentally strong hard-currency sovereign and corporate debt securities in Emerging Markets (currency risk hedged to EUR) maximization of isk-adjust t fishreeustee| remus + Cu
Slide 5: 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 6: Globalworth: typical issuers that the Subfund is looking for
Globalworth: Leading office investor and landlord in Central and Eastern Europe, with a portfolio of over 1 million sqm of assets: + Value of investment property at over 2.5 billion EUR; + Tenants mostly in Poland and Romania. Solid fundamentals, strong and stable cash flows, decent debt level — LTV
Slide 7: Total return
Total return since 2018-12-31 Difference Sri Lanka Government Bonds USD 7.1% -9.4% Ecuador Government Bonds USD -36.7% -53.3% Aggregate Sovereigns USD 16.6% 40% EM bond universe YTM split by YTM bracket 7.00% 20% 0.13% 0.16% 0.59% 6.00% 0.96% 0% Total return 5.00% 0.86% -20% 4.00% 1.16% -40% 3.00% 2
Slide 8: Currency depreciation
40% TRY/EUR EGP/EUR BRL/EUR ARS/EUR 20% Currency depreciation 0% -20% -40% -60% -80% -100%
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Slide 10: Portfolio breakdown by sector, maturity and country
Government 11% Financials Romania Poland 5% 27% Consumer Staples Lithuania 9% Cash Energy Estonia Real Estate Colombia 10% Latvia 16% Materials Mexico 11% Moldova Industrials 12% Côte d'Ivoire Other Turkey Paraguay Panama Czech Republic 7% Brazil 16% < 1 year South Africa Peru 18% 1-3 years France C
Slide 11: Yield to maturity, %
YTM 10.0 9.0 8.0 7.0 Yield to maturity, % 6.0 5.0 4.0 3.0 2.0 1.0 0.0
Slide 12: Top holdings: SNSPW 2028, ROMANI 2036, ARAGVI 2029
- Leading European producer of synthetic rubber and insulation materials; SNSPW 2 1/2 06/07/28 - Acceptable leverage and access to equity injection should it be needed; 3.8% (Synthos SA) - Senior secured issue offering 5% YTW for around 3Y duration and BB+/BB/Ba2 rating. - Relatively low level of pu
Slide 13: Total return (in %)
40% INVL Global Emerging Markets Bond Subfund Benchmark 30% 20% Total return (in %) 10% 0% -10% -20% 2016.07 2017.07 2018.07 2019.07 2020.07 2021.07 2022.07 2023.07 2024.07
Slide 14: Fund performance versus peers
Since Max DD in 3 Funds YTD 2Y 3Y 5Y 3Y Sortino 2016.07.01 years Peer #1 -0.6% 24.9% 19.2% 42.1% 17.0% 0.4% -13.6% Peer #2 1.9% 34.6% 19.6% 35.4% 41.8% 0.3% -20.3% Peer #3 1.0% 31.9% 15.2% 34.4% 22.8% 0.2% -25.3% Peer #4 -3.4% 30.5% 15.7% 30.9% 33.2% 0.2% -18.0% Peer #5 2.0% 24.3% 9.3% 28.1% 15.1% 0
Slide 15: Economic growth and demographic advantage of emerging markets
Economic growth Demographic advantage advantage over developed markets Annual Working age population 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 bonds. EM corporate US
Slide 16: Summary and Subfund facts
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 18: ESG integration (Article under SFDR)
ESG integration (Article 6 under SFDR*) “Avoid” approach with focus on downside risks Two main ESG strategies used across fixed income strategies: Negative / exclusionary screening * No involvement / significant income from controversial weapon production and sales, tobacco, alcohol, gambling, porno
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