Ab Artea Bankas · OMXVSE:ROE1L
Ab Artea Bankas — INVL Global Emerging Markets Bond Subfund — Debt Investor Presentation (December 2024)
20 slides from Ab Artea Bankas's debt investor presentation, December 2024
Slide 1: INVL Global Emerging Markets Bond Subfund
B SIAULIY INU] X PP Banas INVL Global Emerging Markets Bond Subfund =F <a A 0, a a a wT” ———
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.
Slide 4: Investment philosophy
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 that 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
Total return since 2018-12-31 Difference Bolivia Government Bonds USD 2.9% -11.3% Sri Lanka Government Bonds USD 4.3% -9.8% Ecuador Government Bonds USD -28.2% -42.4% Aggregate Sovereigns USD 14.2% 40% 20% 0% Total return -20% -40% -60% -80% Bloomberg EM USD Aggregate: Sovereign Bloomberg EM USD Sov
Slide 9: Currency depreciation
40% TRY/EUR EGP/EUR BRL/EUR ARS/EUR 20% Currency depreciation 0% -20% -40% -60% -80% -100%
Slide 10: Main characteristics and comparisons
Slide 11: Portfolio breakdown by sector, maturity and country
Government 5% Consumer Staples Romania 5% Poland 7% 30% Colombia Financials Estonia 10% Energy Mexico Latvia Real Estate Lithuania Peru 12% Materials Brazil 18% Industrials Moldova 13% Turkey Macedonia Other Côte d'Ivoire Paraguay 1% Panama Czech Republic South Africa 18% 18% < 1 year Chile Diversif
Slide 12: Yield to maturity, %
YTM 10.0 9.0 8.0 7.0 Yield to maturity, % 6.0 5.0 4.0 3.0 2.0 1.0 0.0
Slide 13: Top holdings
- Relatively low level of public debt (close to 50% of GDP); ROMANI 5 5/8 02/22/36 4.3% - Investment grade rating (BBB-) and NATO membership; (Romanian Government) - More than 6.4% YTM for a 7.5Y duration bond. - Leading European producer of synthetic rubber and insulation materials; SNSPW 2 1/2 06/
Slide 14: Total return (in %)
40% INVL Global Emerging Markets Bond Subfund Benchmark 30% 20% Total return (in %) 10% 0% -10% -20% 2016-07 2017-07 2018-07 2019-07 2020-07 2021-07 2022-07 2023-07 2024-07
Slide 15: Fund performance versus peers
Since Funds YTD 2Y 3Y 5Y 2016.07.01 INVL Global Emerging Markets Bond Fund Performance 10.1% 23.6% 6.5% 8.5% 29.5% No. of competitors 115 115 115 115 115 Ranking 8 7 5 4 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 19.1% 34.3% 12.7% 15.2% 37.8% 0.2% -
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: asset class, team, strategy, 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. yh .@ Strategy A proven strategy of bottom-
Slide 18: ESG & sustainability
Slide 19: ESG integration
nlx €— | 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 20: Thank you & all the best in the good work that you do
INVL Global Emerging Markets Bond Subfund — Debt Investor Presentation (December 2024) on 6ix