Ab Artea Bankas · OMXVSE:ROE1L
Ab Artea Bankas — Artea Bankas — Debt Investor Presentation (May 2025)
20 slides from Ab Artea Bankas's debt investor presentation, May 2025
Slide 1: Artea Emerging Markets Ex-Dictatorship Bond Subfund
Artea Emerging Markets Ex-Dictatorship Bond Subfund 2025 May
Slide 2: Disclaimer
Disclaimer Artea Emerging Markets Ex-Dictatorship Bond subfund (hereinafter – the Subfund) is a subfund of the open-ended harmonized investment fund Artea Umbrella Fund, managed by UAB „Artea Asset Management“ (hereinafter – the Management Company). The assets of the Subfund are invested in debt sec
Slide 3: Investment philosophy
Investment philosophy Where does the alpha come from?
Slide 4: Strategy
Strategy Focused Emerging Market government, quasi-sovereign and corporate bond TOP picks Objective: Strategy: • Focus on hard-currency short-term sovereign and corporate debt securities in Emerging Markets (currency risk hedged to EUR) maximization of risk-adjusted returns (Sortino • Current averag
Slide 5: Sources of alpha
Sources of alpha Avoiding value- destructive positions and Exploiting off-benchmark volatility from serial opportunities defaulters or local currencies Usage of arbitrage Active participation in opportunities between primary and secondary single-issuer EUR and markets USD bonds
Slide 6: Typical issuers that the fund is looking for: case study
Typical issuers that the fund is looking for: case study 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 fundam
Slide 7: Avoiding value destruction in heavily leveraged countries and serial defaulters
Avoiding value destruction in heavily leveraged countries and serial defaulters Total return since 2018-12-31 Difference Subfund does not invest into such Sri Lanka Government Bonds USD 5.8% -11.6% troubled countries which are deemed as Ecuador Government Bonds USD -15.9% -33.4% too risky and/or lev
Slide 8: Hard currency only: avoiding the volatility of local currencies
Hard currency only: avoiding the volatility of local currencies Subfund only invests capital into EUR or USD denominated bonds therefore avoiding unexpected situations 40% TRY/EUR EGP/EUR BRL/EUR ARS/EUR 20% Currency depreciation 0% -20% -40% -60% -80% -100% Source: Artea Asset Management, May 2025
Slide 9: Main characteristics and comparisons
Main characteristics and comparisons
Slide 10: Subfund investment breakdowns
Subfund investment breakdowns Sector Country and credit profile Government Romania 13% Financials Lithuania 26% Poland 6% Real Estate Colombia 6% Consumer Staples Cash Latvia 10% Energy Brazil 14% Estonia Consumer Discretionary 12% Mexico 12% Materials Côte d'Ivoire Other Moldova Panama Duration Par
Slide 11: Subfund's yield has remained attractive
Subfund’s yield has remained attractive Artea Emerging Markets Ex-Dictatorship subfund 10.0 9.0 8.0 Yield to maturity, % 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Source: Artea Asset Management, May 2025
Slide 12: Top investments
Top 5 investments - Relatively low level of public debt (close to 60% of GDP); ROMANI 5 5/8 02/22/36 4.5% - Investment grade rating (BBB-) and NATO membership; (Romanian Government) - More than 7% YTM for a 7.5Y duration bond. - Leading office investor and landlord in CEE region with a portfolio of
Slide 13: Significant outperformance against the benchmark
Significant outperformance against the benchmark 40% Artea Emerging Markets Ex-Dictatorship subfund Benchmark 30% Total return (in %) 20% 10% 0% -10% -20% 2016.07 2017.07 2018.07 2019.07 2020.07 2021.07 2022.07 2023.07 2024.07 Modified Ann. return Volatility Sharpe ratio YTM duration Subfund 3.1% 3.
Slide 14: Superior longer-term returns compared to peers
Superior longer-term returns* compared to peers (sorted by 5Y) Since Funds YTD 2Y 3Y 5Y 2016.07.01 Artea Emerging Markets Ex-Dictatorship Subfund Performance 1.7% 22.4% 21.1% 18.4% 31.7% No. of competitors 114 114 114 114 114 Ranking 47 12 4 4 2 Quartile 2 1 1 1 1 Since Max DD in 3 Funds YTD 2Y 3Y 5
Slide 15: Reasons to invest in global Emerging Markets
Reasons to invest in global Emerging Markets Economic growth Demographic advantage over advantage developed markets Annual GDP Working age population Projected growth 2022 2027 2017-2021 2020 Projected 2050 DM 1.5% 2.4% 1.7% EM 3.5% 3.7% 4.3% DM 0.8 bn 0.7 bn Source: IMF EM 4.2 bn 5.3 bn Source: Wor
Slide 16: Summary
Summary Asset class Team Strategy Balanced risk / return Under-researched region Experienced team with solid A proven strategy of bottom-up Short duration and hard which offers attractive track record in very active bond picking and exploiting currency investments that opportunities for active bond
Slide 17: Additional information
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Slide 18: ESG & sustainability
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Slide 19: ESG integration (Article 6 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
Slide 20: Thank you & all the best in the good work that you do
Thank you & all the best in the good work that you do artea.lt