BankInvest - Hojt Udbytte Aktier Aktier Akk A AccumDKK · OMXCOP:BAIHU
BankInvest - Hojt Udbytte Aktier Aktier Akk A AccumDKK — BankInvest — Investor Presentation (July 2024)
51 slides from BankInvest - Hojt Udbytte Aktier Aktier Akk A AccumDKK's investor presentation, July 2024
Slide 1: LMM BankInvest Emerging Markets Corporate Debt
LMM BankInvest Emerging Markets Corporate Debt July 2024
Slide 2: About the BankInvest Group
About the BankInvest Group BankInvest is a leading Nordic asset manager providing UCITS funds and AIFs o Total assets under management and administration of approx. DKK 179.8 billion (EUR 24.9 billion). o Established in 1969 as one of the first investment associations in Denmark. o The ownership gro
Slide 3: About the BankInvest Group
About the BankInvest Group BankInvest is a leading Nordic asset manager providing UCITS funds and AIFs Out of the actively managed assets, 32% are invested in bonds, o BankInvest manages EUR 1.7 billion in Emerging 49% in equities, and the remaining portion is allocated to Market bonds across mutual
Slide 4: BankInvest has vast experience in Emerging Market Debt
BankInvest has vast experience in Emerging Market Debt 1987 1991 1992 2001 2005 2007 2009 2012 2014 2017 2021 Eastern European Latin EM Hard EM Local EM Debt SRI EM Corporate EM Corporate EM Corporate EM Corporate EM Short Asian Equity Fund American Currency Currency Fund Debt Fund Debt SRI Fund Mat
Slide 5: Experienced Emerging Market Corporate Debt team
Experienced Emerging Market Corporate Debt team Same PM-team since inception PM-team ESG Analysts Søren Bertelsen Chresten Hagelund Søren Høyer Line Vestergaard Stæhr BankInvest since: 2000 BankInvest since: 2006 BankInvest since: 2019 BankInvest since: 2021 EMCD since: 2001 EMCD since: 2007 ESG sin
Slide 6: Emerging Market Debt team (continued)
Emerging Market Debt team (continued) European Credit Global rates & macro EM Strategy and Equity Risk Analysis Carsten Horn Nielsen Anders Isager Jakob Vejlø Jakob Møller Petersen BankInvest since: 2000 BankInvest since: 2006 BankInvest since: 2009 BankInvest since: 2011 Experience: 36 years Experi
Slide 7: Performance
ANKIN med omtanke
Slide 8: Consistent Stable Excess Returns since inception
Consistent Stable Excess Returns since inception Return index Excess return Return 31/12/2008 - 26/06/2024 Total Return Annualized Return* LMM ? BankInvest Emerging Markets Corporate Debt I (EUR) in (EUR), Gross of Fee 186.19% 7.03% Fund name LMM Emerging Markets Corporate Debt Benchmark til LMM ? B
Slide 9: Relative performance
Relative performance EM Sovereign/Corporate blend strategy EM Corporate Debt Return 31/12/2008 - 29/03/2024 Total Return Annualized Return* Return 31/12/2008 - 29/03/2024 Total Return Annualized Return* BankInvest Emerging Markets Obligationer W in (DKK), Gross of Fee 162.86% 6.55% BI SICAV - Emergi
Slide 10: Peer comparison – monthly returns for a 10-year period
Peer comparison – monthly returns for a 10-year period
Slide 11: Historic risk-return
Historic risk-return USD composite vs peer group Source: eVestment 11-07-2024 11
Slide 12: Philosophy & Process
Philosophy & Process BANKINVEST QEntIGg med omtanke
Slide 13: Philosophy
Philosophy Investment Philosophy ○ Understand market characteristics and potential We believe, based on our 20+ years experience in Emerging inefficiencies Market Corporate Debt, that we can deliver a stable risk adjusted ○ Focus screening and analysis on narrowing the excess return while minimizing
Slide 14: Market inefficiencies and how we exploit them
Market inefficiencies and how we exploit them Characteristics: How we tackle it: ○ Country risk is important risk factor ○ Understand country risk to minimize downside risk ○ Mixed IG/HY – large crossover segment ○ BBB/BB has attractive risk/return profile - overweight ○ Strong credits in weaker eco
Slide 15: Exploiting inefficiencies
Exploiting inefficiencies How we tackle it: Country risk ○ Understand country risk to minimize downside risk Opportunities ○ BBB/BB has attractive risk/return profile - overweight among Focus on infrequent BBB/BB issuers ○ Corporate governance and track record focus issuers Conviction fit Measured r
Slide 16: Investment process
Investment process Monitoring and Qualitative Quantitative Investment Portfolio Monitoring and Macro analysis idea generation Analysis Analysis Approval Construction idea generation o Macro, political o Negative screen o Corporate o Cash flow o Valuation tools o Strong focus on o Quant based and the
Slide 17: Several steps to narrow down investment universe
Several steps to narrow down investment universe EM Corporate Universe of +900 issuers Convictions o Macro framework to narrow investment universe Macro and Political Outlook o Exclusion of crisis prone countries ESG Standards o Exclusion of countries and corporates with poor ESG risk management Man
Slide 18: Global Core Convictions
Global Core Convictions Core convictions Theme Portfolio focus Confidence Indicator Countries in focus Global growth: Mild global recovery supported by fiscal policies (incl. Market conditions to remain High - Global growth Sustainable HY to keep performing; Carry Global near-shoring etc, defence),
Slide 19: 4 factors in our sovereign analysis
4 factors in our sovereign analysis External Reform Fundamentals Price environment momentum Overweight Fed policy Fiscal and Macroeconomy Relative to: Global economy monetary policy Liquidity risk • Rating changes Geopolitical risks Solvency • Region Structural reforms indicators • Historical Neutra
Slide 20: Inputs to sovereign analysis
Inputs to sovereign analysis Top-down views Bottom-up analysiscountry chartpacks and country analysis 1) Detailed 1. Rating implied valuation model 2. Cross-country and global economic chartpacks 2. One-on-ones with IMF, Moodys, sell-side banks, and country visits Emerging Markets Corporate Debt 11
Slide 21: Country Research and Screening
Country Research and Screening Objective to minimize downside risks by: o Preferring countries with robust qualitative indicators and healthy debt dynamics o Disliking countries with weak qualitative indicators and/or being crisis prone o Preferring countries with credit spreads compensating for ass
Slide 22: Sustainable investment process
Sustainable investment process BankInvest funds Investment Exclusion criteria Identify controversial issuers Sustainability issues o International norms o Sustainalytics: o Transition strategy and targets o Controversial weapons o Non-compliant of global Integrate ESG data in standards o Dialogue o
Slide 23: Corporate screening and idea generation
Corporate screening and idea generation Objective to identify undervalued and quality corporate issuers: o Screening for credit metrics and positive equity momentum adjusted for bond duration and country risk premia o Ranking universe in deciles - > prefer top quintile as these credits offer value a
Slide 24: Corporate screening and idea generation
Corporate screening and idea generation Ülker Bisküvi Sanayi A.S. – Dechow’s F-score and Beneish M-score ○ Objective to screen out issuers where accounting data highlights: Ülker Bisküvi Sanayi A.S. - Dechow's F-score & Beneish M-Score F-SCORE M-SCORE o High risk of material accounting misstatements
Slide 25: Idea generation and monitoring
Idea generation and monitoring Monitoring credits by sectors to screen for relative value and fundamental price distortions Sector Screening – OAS versus internal rating scores Sector Screening – Spread over Sovereign versus internal rating scores Source: Bloomberg 11-07-2024 25
Slide 26: How we choose
How we choose Mapping Risk Factors at the Issuer Level Strong focus on governance, track record, industry positioning and sustainability Minimize Avoid issuers from concentration risks struckurally weak and invest with countries medium to long term horizon Issuer & Holding Philosophy Prefer infreque
Slide 27: Portfolio Construction and Monitoring
Portfolio Construction and Monitoring ○ Risk monitoring using BlackRock Aladdin o Integrated portfolio, trading, and risk management system o Comprehensive risk mapping across strategies o Flexible risk reports tailormade for generic and specific risk measures o Highlighting portfolio performance an
Slide 28: Portfolio characteristics and limits
Portfolio characteristics and limits Characteristics Limits and restrictions o Long-only USD bond portfolio, no o Maximum 5% in any corporate debt issuer derivatives applied o Maximum of 10% in unlisted instruments o 160-200 issuers o Turnover ratio: 40-50% per year o New investments cannot have a r
Slide 29: Risk management framework
Risk management framework Three levels of Risk management PMs and Risk team Compliance External Investment risk Primary risk owners Risk control Oversight and audit management o Portfolio managers o Risk analysis o Compliance o External audit are primarily responsible for o Exposure o Investment con
Slide 30: Key Competitive Advantages
hi i ao Key Competitive Advantages
Slide 31: Key Competitive Advantages
Key Competitive Advantages ○ Boutique sized AUM enabling smoother navigation in secondary markets and ability to focus on credits off the beaten track ○ Consistent track record of stable excess returns across multiple business cycles based on disciplined investment process with consistent upside cap
Slide 32: ESG & sustainability
ESG & sustainability Emerging Market Debt
Slide 33: ESG-team
ESG-team ESG STRATEGY & POLICY Jakob is Head of Investment Risk & Since 2020, in her work as Senior ESG Caroline joined BankInvest in the spring of Selection as well as Head of ESG. Jakob Manager, Linnea has helped to strengthen 2023. She has a background as ESG came to BankInvest in 2011 as Risk an
Slide 34: ESG and Sustainability in BankInvest
ESG and Sustainability in BankInvest ESG and Sustainability is an integral part of BankInvest o Oversight from internal Responsible Investments Committee chaired by the CEO. The management group is part of the Committee o A signatory of PRI since 2008 as the first Danish asset manager o Joined the N
Slide 35: Sustainability based on Integrety and Transition
Sustainability based on Integrety and Transition grity te In Transition With integrity, we mean that the companies we invest in should generally interact with the world in a responsible manner. With transition, we mean that the companies we invest in should contribute to a positive change1. ty inabi
Slide 36: ESG approach
ESG approach o ESG integration in investment process o Ongoing dialogue and knowledge sharing on sustainability Awareness o ESG sparring meetings o Dialogue with issuers o Companies with an ESG CCC-rating based om MSCI ESG o Companies classified an non-compliant according to Comply-or-explain Mornin
Slide 37: Integrating ESG in the investment process
Integrating ESG in the investment process Inv. process Monitoring and Macro Qualitative Quantitative Investment Portfolio idea generation Analyses Analysis analysis approval construction Negative screen - ESG risk and ESG trend focus ESG and norm ESG rankings, SDG ESG ratings included in ESG factors
Slide 38: Engagement in Fixed Income Portfolios
Engagement in Fixed Income Portfolios Engagement with bond issuers Company ESG dialogue Green / Sustainable / Social bonds o Engage directly with senior o ESG questions part of ongoing o Sustainability asssessment of management company interactions: dedicated bonds factored in conferences, new issue
Slide 39: ESG reporting
ESG reporting SICAV EM Corporate Debt (USD) ESG reporting to investors Customized reporting Integration of data We have the capability to customize reporting based ESG information sourced on the client's requirements, from our primary data tailoring it to their specific providers has been needs and
Slide 40: Data sources - ESG
Data sources - ESG We use data from several data sources in The input is used as an integrated part of the our evaluation of a company investment process 1 MSCI ESG 6 Independent Research 2 Morningstar Sustainalytics 7 Dialogue with companies 3 Quant data - ESG 8 International organizations 4 Credit
Slide 41: Fossil Fuel guidelines
Fossil Fuel guidelines We classify fossil investments in what we refer to as the traffic light model EXCLUSION Exclusion of companies with significant environmental risks or harmful behavior The “Responsible”- strategies only invest in the inclusion PAHSING OUT category in Phasing out fossil compani
Slide 42: Portfolio key figures
Portfolio key figures
Slide 43: Portfolio key figures
Portfolio key figures Portfolio Summary Factsheet Risk Metrics Source: BlackRock Aladdin, Bloomberg 43
Slide 44: Rating distribution
Rating distribution Rating distribution Source: BlackRock Aladdin, Bloomberg 11-07-2024 44
Slide 45: Country & Sector exposures
Country & Sector exposures Country & Sector Exposures Source: Bloomberg, BlackRock Aladdin 11-07-2024 45
Slide 46: DTS exposures
DTS exposures DTS overview Source: BlackRock Aladdin, Bloomberg 11-07-2024 46
Slide 47: Team
Team ANKIN med omtanke
Slide 48: Emerging Market Debt team
Emerging Market Debt team Søren Bertelsen, Chief Portfolio Manager Michael Hauch, Head of Fixed Income M.Sc. in Economics and Business Administration and CFA charterholder. Søren M.Sc. in Economics from Copenhagen University. Michael Hauch is head of the fixd income Bertelsen is a portfolio manager
Slide 49: Credit & Macro team
Credit & Macro team European Credit Global rates & macro Carsten Horn Nielsen, Chief Portfolio Manager Anders Isager, Chief Portfolio Manager Carsten is chief portfolio manager of the IG Corporate Bond Anders is responsible for the Dansih bond funds at BankInvest. Anders has a long Strategies. Carst
Slide 50: ESG-team
ESG-team ESG Strategy & Policy Jakob is Head of Investment Risk & Since 2020, in her work as Senior ESG Caroline joined BankInvest in the spring of Selection as well as Head of ESG. Jakob Manager, Linnea has helped to strengthen 2023. She has a background as ESG came to BankInvest in 2011 as Risk an
Slide 51: Disclaimer
Disclaimer This document is produced by the BankInvest Group (BankInvest) and should be considered as marketing material. The purpose is to provide general information about the fund and should not be considered as an investment recommendation. Any reference to companies and securities should only b