Ab Artea Bankas · OMXVSE:ROE1L
Ab Artea Bankas — INVL Emerging Europe Bond Subfund — Investor Presentation (December 2024)
24 slides from Ab Artea Bankas's investor presentation, December 2024
Slide 1: INVL Emerging Europe Bond Subfund
LS NKAS INVL Emerging Europe Bond Subfund INL xt 2024 December
Slide 2: Disclaimer
Disclaimer INVL Emerging Europe 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 Subfund is the feeder undertaking of the subfund INVL Emerging Euro
Slide 3: Investment philosophy
Slide 4: Subfund facts
Subfund facts + Inception: 2010-10-29 Morningstar + AUM:EUR 7M / EUR 59 M (master fund) / Strategy AUM: EUR 285 M + Subfund ISIN: LTIFOOO00468 * * * * + Management fee: 0.45% Lipper Leaders* + Maximum subfund level TER*: up to 2% + Notional TER**: 2.13% Highest overall rankings in 3 of 4 + Investmen
Slide 5: Strategy
Strategy Focused Emerging Europe government and corporate bonds TOP picks Objective: Strategy: + Focus on hard-currency short-term sovereign and corporate debt securities in Emerging Europe (currency risk hedged to maximization of EUR) risk-adjusted returns (Sharpe ratio) and * Current average credi
Slide 6: Subfund performance vs benchmark index
80% 70% INVL Emerging Europe Bond Subfund Benchmark index 60% 50% 40% 30% 20% 10% 0% -10% 2010-10-29 2012-10-29 2014-10-29 2016-10-29 2018-10-29 2020-10-29 2022-10-29 2024-10-29
Slide 7: Subfund vs Bloomberg Euro Aggregate Corporate index
80% INVL Emerging Europe Bond Subfund 70% Bloomberg Euro Aggregate Corporate Total Return Index Value Unhedged EUR 60% 50% 40% 30% 20% 10% 0% -10% 2010-10-29 2012-10-29 2014-10-29 2016-10-29 2018-10-29 2020-10-29 2022-10-29 2024-10-29
Slide 8: Components of Subfund's return
INTE Components of Subfund’s return CEE bond market High value off- inefficiencies benchmark opportunities Flexibility to switch between government and corporate bonds Active participation in primary market
Slide 9: Globalworth: typical issuers the Subfund looks 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 10: Main characteristics and comparisons
Slide 11: 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0
9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0
Slide 12: Portfolio breakdown by currency, country, maturity
5% Poland Romania EUR Czech Republic USD Lithuania 95% Cash Estonia Bulgaria 5% Latvia Macedonia 28% < 1 year Moldova 16% 1-3 years Turkey 3-5 years 0% 5% 10% 15% 20% 25% 30% 5-7 years Corporate Sovereign > 7 years 46%
Slide 13: Top holdings
- Large-scale discounter operating from around 4,000 stores in 20 countries in Europe; PEPGRP 7 1/4 07/01/28 4.6% - Impressive growth track record and robust business model; (Pepco Group) - Financials are intact (ND/EBITDA at <2x, strong generational capacity of cash from operations) and company rec
Slide 14: Performance vs peers
0% 4% 0% -4% -4% -8% -8% -12% -12% -16% -16% 2011-06-06 2011-07-06 2011-08-06 2011-09-06 2011-10-06 2011-11-06 2011-12-06 2013-05-08 2013-08-08 2013-11-08 2014-02-08 2014-05-08 INVL Peer #1 Peer #2 Peer #3 INVL Peer #1 Peer #2 Peer #3 Peer #4 Peer #5 Peer #6 Peer #7 Peer #4 Peer #5 Peer #6 Peer #7 P
Slide 15: Performance vs peers
5% 5% 0% 0% -5% -10% -5% -15% -10% -20% -25% -15% -30% -35% -20% 2020-02-19 2020-04-19 2020-06-19 2020-08-19 2020-10-19 2020-12-19 -40% 2021-08-31 2022-02-28 2022-08-31 2023-02-28 2023-08-31 2024-02-29 2024-08-31 INVL Peer #1 Peer #2 Peer #3 INVL Peer #1 Peer #2 Peer #3 Peer #4 Peer #5 Peer #6 Peer
Slide 16: Subfund performance comparison with peer group over last years
Subfund performance comparison with peer group over last 10 years Performance Time period | 10 years v Total Return oes RETURN RANK 25.0% 3715 20% 10% @ INVL Emerging Europe Bond 0% vw Sector Average ~108 -208 SEP1S JULI6 MAYI7 MAR18 JANI9 NOVIS SEP20 JUL21 MAY 22 MAR23 JAN24 NO\_ TOTAL RETURN ‘STAN
Slide 17: Why CEE region
Why CEE regic its mai
Slide 18: EU-27 average EE, LV, LT, PL, RO average (GDP-weighted) DE, FR, IT, ES average
140.0% 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 EU-27 average EE, LV, LT, PL, RO average (GDP-weighted) DE, FR, IT, ES average (GDP-weighted)
Slide 19: Government debt to GDP (%)
Government debt to GDP (%) 0 50 100 150 250 300 200 Estonia Bulgaria Kazakhstan Luxembourg Denmark Bosnia and Herz. UAE Türkiye Peru Vietnam Sweden Lithuania Switzerland Moldova Norway Georgia Indonesia Chile Ireland Latvia Czechia Netherlands Serbia Australia Romania Malta Colombia N. Macedonia Pol
Slide 20: Summary
Asset class Under-researched region which offers attractive opportunities for active bond selectors. Summary eral Team Experienced team with solid track record in very active management of Emerging Europe bonds and equities. Strategy A proven strategy of bottom-up bond _ picking and exploiting marke
Slide 21: Additional information
Additio
Slide 22: ESG & sustainability
Slide 23: ESG integration
nulx€— | 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, gambli
Slide 24: Thank you & all the best in the good work that you do
INVL Emerging Europe Bond Subfund — Investor Presentation (December 2024) on 6ix