Ab Artea Bankas · OMXVSE:ROE1L
Ab Artea Bankas — INVL Emerging Europe Bond Subfund — Debt Investor Presentation (March 2025)
24 slides from Ab Artea Bankas's debt investor presentation, March 2025
Slide 1: INVL Emerging Europe Bond Subfund 2025 March
§ B @ INL| * pP IAULIY ANKAS INVL Emerging Europe Bond Subfund 2025 March
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 + AUM:EUR7M / EUR60 M (master fund) / Strategy AUM: EUR 291M + Subfund ISIN: LTIFOOOO0468 + Management fee: 0.45% + Maximum subfund level TER*: up to 2% + Notional TER**: 2.13% + Investment manager: SB Asset Management * Management company: SB Asset Management +
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 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
INGE 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 million sqm of assets: + Value of investment property at over 2.5 billion EUR; + Tenants mostly in Poland and Romania. Solid fundamentals, strong and stable cash flows, decent debt level — LTV
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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 country, currency, maturity
6% Poland Romania EUR Czech Republic USD Lithuania Estonia 94% Bulgaria Macedonia Turkey 3% 16% Cash < 1 year Moldova 25% 1-3 years Latvia 3-5 years 0% 5% 10% 15% 20% 25% 30% 5-7 years > 7 years Corporate Sovereign 53%
Slide 13: Top holdings and issuer rationale
- Large-scale discounter operating from around 4,000 stores in 20 countries in Europe; PEPGRP 7 1/4 07/01/28 4.4% - 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: INVL vs peers performance
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: INVL vs peers performance
5% 5% 0% 0% -5% -10% -5% -15% -10% -20% -25% -15% -30% -35% -20% -40% 2020-02-19 2020-04-19 2020-06-19 2020-08-19 2020-10-19 2020-12-19 2021-08-31 2022-02-28 2022-08-31 2023-02-28 2023-08-31 2024-02-29 2024-08-31 2025-02-28 INVL Peer #1 Peer #2 Peer #3 INVL Peer #1 Peer #2 Peer #3 Peer #4 Peer #5 Pe
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 308 RETURN RANK 27.1% 27/16 20% 10% @ INVL Emerging Europe Bond ox Sector Average ~10% 20% DECIS OCTI6 AUGI7 JUNI8 APRI9 FEB20 DEC20 OCT21 AUG22 JUN23 APR24 FEB2! ‘TOTAL RETURN ‘STANDA
Slide 17: Why CEE region
Why CEE regi its main c
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 50 100 150 200 250 300 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, Team, Strategy, Balanced risk/return
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 mar
Slide 21: Additional information
Additio
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Slide 23: ESG integration (Article 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
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