Ab Artea Bankas · OMXVSE:ROE1L

Ab Artea Bankas — Artea Bankas — Debt Investor Presentation (April 2025)

20 slides from Ab Artea Bankas's debt investor presentation, April 2025

  1. Slide 1: Artea Emerging Markets Ex-Dictatorship Bond subfund

    Artea Emerging Markets Ex-Dictatorship Bond subfund 2025 April

  2. 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

  3. Slide 3: Investment philosophy

    Investment philosophy Where does the alpha come from?

  4. 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

  5. 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

  6. 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

  7. 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 0.1% -16.6% troubled countries which are deemed as Ecuador Government Bonds USD -22.2% -38.8% too risky and/or lev

  8. Slide 8: Currency depreciation

    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, April 202

  9. Slide 9: Main characteristics and comparisons

    Main characteristics and comparisons

  10. Slide 10: Subfund investment breakdowns

    Subfund investment breakdowns Sector Country and credit profile Government Romania 9% Financials Poland 5% 26% Consumer Staples Lithuania 9% Estonia Energy Colombia 10% Real Estate Latvia Cash 16% Materials Mexico 11% Industrials Turkey 13% Moldova Other Côte d'Ivoire Paraguay Duration Panama Brazil

  11. Slide 11: Subfund's yield has remained attractive

    Subfund’s yield has remained attractive Artea Emerging Markets Ex-Dictatorship Bond subfund 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 Source: Artea Asset Management, April 2025

  12. Slide 12: Top investments

    Top 5 investments Source: Artea Asset Management, Bloomberg, company filings, April 2025

  13. Slide 13: Significant outperformance against the benchmark

    Significant outperformance against the benchmark 40% Artea Emerging Markets Ex-Dictatorship 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 Modified Ann. return Volatility Sharpe ratio YTM duration Subfund 3.1% 3.

  14. 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 1.0% 21.3% 19.7% 22.1% 30.8% No. of competitors 114 114 114 114 114 Ranking 53 11 3 5 2 Quartile 2 1 1 1 1 Since Max DD in 3 Funds YTD 2Y 3Y 5

  15. 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

  16. 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

  17. Slide 17: Additional information

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  18. Slide 18: ESG & sustainability

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  19. 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

  20. 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

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