Ab Artea Bankas · OMXVSE:ROE1L
Ab Artea Bankas — INVL Global Emerging Markets Bond Subfund — Investor Presentation (September 2024)
20 slides from Ab Artea Bankas's investor presentation, September 2024
Slide 1: INVL Global Emerging Markets Bond Subfund
B SIAULIY nu|X pa sancas | INVL Global Emerging Markets Bond Subfund =F <a A oF, a a a mT” ———
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
INL 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: Globalworth: typical issuers the Subfund is looking for
Globalworth: + 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 Poland and Romania. + Solid fundamentals, strong and stable cash flows, decent debt level —
Slide 8: Total return since 2018-12-31
Total return since 2018-12-31 Difference Argentina Government Bonds USD -4.9% -20.9% Sri Lanka Government Bonds USD -15.6% -31.6% Ecuador Government Bonds USD -28.7% -44.6% Aggregate Sovereigns USD 16.0% 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%
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Slide 11: Portfolio breakdown by sector, country and maturity
Government 11% Consumer Staples Poland Romania 4% 32% Financials Colombia 5% Lithuania Energy Cash 11% Mexico Real Estate Peru Latvia 11% Industrials Czech Republic 16% Moldova 11% Materials Estonia Other Côte d'Ivoire Turkey Brazil Macedonia 13% 7% Panama South Africa < 1 year Paraguay 22% 1-3 year
Slide 12: 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0
10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0
Slide 13: Top holdings
- Dominating shopping and entertainment center operator in the Baltics; AKRPLS 2 7/8 06/02/26 4.6% - Attractive around 5% YTW for BB+ rated, less than 2Y duration issue; (Akropolis) - Conservative net LTV at 26% as of 2024 Q2. - Relatively low level of public debt (close to 50% of GDP); ROMANI 5 5/8
Slide 14: Total return (in %)
30% INVL Global Emerging Markets Bond Subfund Benchmark 25% 20% 15% Total return (in %) 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: Fund ranking versus peers
Since Funds YTD 2Y 3Y 5Y 2016.07.01 INVL Global Emerging Markets Bond Fund Performance 9.0% 28.6% 3.8% 8.6% 28.2% No. of competitors 115 115 115 115 115 Ranking 17 24 5 5 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 10.5% 41.0% 2.7% 12.0% 36.6% 0.0% -
Slide 16: Economic growth and demographic advantage
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 17: 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 19: ESG integration
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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