Ab Artea Bankas · OMXVSE:ROE1L
Ab Artea Bankas — INVL Emerging Europe Bond Subfund — Debt Investor Presentation (June 2024)
24 slides from Ab Artea Bankas's debt investor presentation, June 2024
Slide 1: INVL Emerging Europe Bond Subfund 2024 June
Inu} * (4 SIAULIY BANKAS INVL Emerging Europe Bond Subfund 2024 June
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
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Slide 4: Subfund facts
Subfund facts * Inception: 2010-10-29 Morningstar + AUM: EUR 8M / EUR 41M (master fund) / Strategy AUM: EUR 260M * * * * + Subfund ISIN: LTIFOOOQ00468 + Management fee: 0.45% Lipper Leaders* * Maximum subfund level TER: up to 2% + Notional TER: 2.13% Highest overall rankings in 3 of 4 + Investment m
Slide 5: Strategy
Strategy Focused Emerging Europe government and corporate bonds TOP picks Objective: Strategy: maximization of risk-adjusted returns (Sharpe ratio) and minimization of drawdowns Focus on hard-currency short-term sovereign and corporate debt securities in Emerging Europe (currency risk hedged to EUR)
Slide 6: INVL Emerging Europe Bond Subfund 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
Slide 7: INVL Emerging Europe Bond 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
Slide 8: Components of Subfund's return
INL x05 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 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 — LTV
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Slide 11: INVL Emerging Europe Bond Fund YTM
9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 INVL Emerging Europe Bond Fund YTM
Slide 12: Portfolio breakdown by currency, maturity, country
4% Poland Romania EUR Lithuania USD Czech Republic 96% Estonia Cash Bulgaria Macedonia 13% 7% Moldova < 1 year Slovenia 1-3 years Latvia 3-5 years 42% 5-7 years 38% 0% 5% 10% 15% 20% 25% 30% > 7 years Corporate Sovereign
Slide 13: Top holdings
- Dominating shopping and entertainment center operator in the Baltics; AKRPLS 2 7/8 06/02/26 5.5% - Attractive around 6% YTW for BB+ rated less than 3Y duration issue; (Akropolis) - Conservative net LTV at 21% as of 2023 Q4. - Large-scale discounter operating from around 4,000 stores in 20 countrie
Slide 14: Value of risk management strategy in turbulent markets
Value of risk management strategy in turbulent markets — total returns Eurozone Debt Crisis FED Taper Tantrum 4% 0% O% 4% 4% 6% % 12% 12% 16% “16% 2011-0606 2011-07-06 2011-08-06 2011-09-06 2011-1006 = 2011-11-06 2011-12-06 2013-05-08 2013-08-08 2013-11-08 2014.02.08 2014.05.08 INV eer Hh Peer #2 —P
Slide 15: Value of risk management strategy in turbulent markets
5% 5% 10% 15% 20% 2020-02-19 —n —Peer #4 Peer #8 Value of risk management strategy in turbulent markets — total returns Covid-19 sell-off Inflation shock, rate hikes, war in Ukraine 04-19 10-06-19 ; 1020-10-19 - 2m. 22006 220899 2020108 aides 2021-08-31 2021-12-31 2022-04-30 2022-08-31 2022-12-31 20
Slide 16: Comparison with peers over last years
Comparison with peers over last 10 years Returns Vs Risk 16 INVL Emerging Europe Bond | Standard deviation: 2.9 Total return: 11.5% TZ e 10 Total return % © 3 4 5 6 7 8 Standard deviation Source: Citywireselector.com (Comparison with peers over 10 years) as of June 2024 16
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Slide 18: Government debt to GDP by region
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 50 150 200 250 300 100 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 Oey 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 = mar
Slide 21: Additional information
Additio
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Slide 23: ESG integration (Article under SFDR)
ESG integration (Article 6 under SFDR) INL x “Avoid” approach with focus on downside risks Two main ESG strategies used across fixed income strategies: Negative / exclusionary screening * No involvement / significant income from weapon production and sales, tobacco, alcohol, gambling, pornography se
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INVL Emerging Europe Bond Subfund — Debt Investor Presentation (June 2024) on 6ix