Local Currency Bonds I EUR Acc
Emerging Markets
-1.23 %
Per 01/05/25 16:32
LOW RISK
HIGH RISK
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DK0060646636
0.62 %
Profile
The Structural Investment Case for Emerging Markets Bonds
- Emerging market and Frontier countries generally belongs to the low- or middle-income parts of the World when measured on GDP per capita.
- Because these countries typically have growing populations and lower capital bases compared to high income countries, they tend to grow structurally higher causing their income to converge towards that of more developed countries.
- Many EM countries benefit from favorable demographics, urbanization, and industrialization, supporting long-term economic expansion.
- Emerging markets sovereigns have, on aggregate, lower debt-to-GDP ratios than many developed countries, mitigating default risks.
- Emerging market countries are generally fundamentally in good shape with falling levels of inflation, higher credit ratings and improved institutions such as independent central banks.
- Emerging markets sovereign bonds offer a significant yield premium over developed market government bonds and improving fundamentals leads to declining interest rates and credit spreads over time.
- Unlike developed markets, EM economies operate under distinct monetary and fiscal conditions, offering diversification benefits.
- Fragile institutions and unsustainable conduct of government can still cause risks to investors. Therefore, Sydinvest considers a significant amount of data on ESG (Environmental (E), Social (S) and governance (G)) factors when constructing the portfolios.
The Profile for Sydinvest Emerging Markets Bonds
- The fund invests in emerging markets sovereign bonds issued from emerging market and frontier countries. The objective is to provide investors with excess returns to the benchmark through active portfolio management.
- The fund’s investment philosophy considers that a number of risk premiums emerge from the fundamental and structural case of emerging market convergence.
- Most prominently, the lower level of human development and income cause institutional and market risks that increase the country risk premium. This premium can typically be expressed through political risk, inflation risk, trade and current account balance risk as well as government budget funding risk. A thorough evaluation of the growth and debt payment dynamics as well as the sustainability of government is conducted to reveal such opportunities.
- Secondly, the lower market cap of emerging debt issues creates liquidity premiums that can be revealed through a systematic relative value analysis across the investor base, the issuer characteristics and the issuer quality.
- The ongoing dynamics of these risk premiums cause market prices to deviate from their long-term fair values. It implies that each emerging market country carries a unique story, and that active management is the only way for investors to unlock the value of these opportunities.
- Sydinvest offers investors its decade-long experience of investing into hard and local currency emerging markets with an investment process built by a small yet highly efficient and agile team.
Meet the team behind it
Those who manage your investment
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Thomas Brund
Head of EM Debt
Head of EM Debt - joined Sydbank EM Debt in November 2007 from the Danish asset manager Jyske Invest where he managed EM debt hard and local currency portfolios as Senior Portfolio Manager. His investment manager career began back in 1996 where he took management of Sydbank’s Danish fixed income portfolios. In 1998 he moved on to become fixed income analyst at Jyske Bank. In 2001, he assumed the role as Head of Fixed Income in Jyske Invest until 2005 where he decided to focus entirely on EM debt and participate in the launch the firm’s first EM local currency strategy.
Rune Juel Hansen
Senior Portfolio Manager
Senior Portfolio Manager - joined Sydbank EM Debt in October 2007 from the Danish bank Jyske Bank’s Emerging Markets Fixed Income Division where he held a position as Quantitative Analyst. Rune began his career in 2004 in Jyske Bank and worked closely with colleagues Thomas Brund and Phillip Blackwood on the EM debt strategies in Jyske Invest. Their partnership has continued in Sydbank where Rune has held the role as Senior Portfolio Manager covering a number of research responsibilities. Most notably is Rune’s skills in the quantitative research approach where he has made significant contributions to the Team’s Relative Value approach on EM FX and credit, specialist assets and EM Frontier markets.
Jens Erik Boesen
Senior Portfolio Manager
Senior Portfolio Manager - joined Sydbank EM Debt in May 2013 from a position as Senior Risk Analyst with DONG Energy Markets (the Danish national oil and gas exploration and production company) where he had primary responsibility on long term market risks including global macro and FX markets. Before assuming his role with DONG Jens Erik was an economist with the Danish Central Bank’s Market Operations Division, where he managed risk on the Central Bank’s FX Reserves.
Phillip Blackwood
Joined Sydbank EM Debt in October 2007 and since 2011 a partner with the Team as Adviser on exclusive basis. Phillip was born in Belfast, Northern Ireland, and lives in London UK since 2011 after spending 11 years in Denmark. In line with Sydbank’s core values of retaining valuable skills and nurse long term partnerships, Phillip has continued his relationship with the team through EM Quest Ltd; an FCA licensed investment advisory firm solely owned by Phillip with Sydbank as the only and exclusive client.
Hans Christian Bachmann
Senior Economist
Senior Economist - joined Sydbank EM Debt in 2007 from a position as Macro Analyst in Sydbank Markets where he started in 2004. Hans Christian has spent his entire career with Sydbank in research with a key focus on EM as well as the major Developed World macro economies and has contributed to the Team’s investment process through his development of the fundamental market research and global politics.
Anette Melchiorsen
Senior Portfolio Manager
Senior Trader - joined Sydbank EM Debt in 2007 from a position as trader in Sydbank Markets where she had been trading EM securities since her career in Sydbank began in 2001. Before assuming her position with Sydbank she held a position as Financial Controller with A.P. Moeller-Maersk from 1998.
Claus Juhl
Head of Fixed Income Research
Head of Fixed Income Research in Sydbank Asset Management and key responsible for the fundamental quantitative research and data management on all Fixed Income strategies. Claus assumed the role as Head in 2013 coming from a position as quantitative analyst in the same group since 2003 where he worked full time as part of the EM Debt Team from 2007 to 2011
Thomas Rytter
Quantitative Analyst
Quantitative Analyst with Sydbank’s Fixed Income Research, joined Sydbank EM Debt full time in 2011 from a similar position in the same group. He replaced Claus Juhl as the daily 1st contact and works closely with Claus Juhl and the rest of the group’s analysts on the Sydbank EM Portfolio System.
Returns (according to costs)
Returns
Per 01/05/25 16:32Today's Return +0.67 %
Return Apr: -1.39 %
Return YtD -1.23 %
NAV per. 01/05/25 16:32
| Today's Return | 0.67 % |
| Return year to date, % | -1.23 % |
| Sell | |
| Buy | |
| NAV ultimo | 1920.95 |
| Total Assets (m) | 1 EUR |
Returns - Last Update 01/05/25
| Return year to date, % | -1.74 % |
| 1 Year | 2.39 % |
| 3 Years | 9.42 % |
| 5 Years | 10.61 % |
| 7 Years | 9.42 % |
| 10 Years | 10.76 % |
Latest trends
| Local Currency Bonds I EUR Acc | Return April | Return YtD |
|---|---|---|
| Latest trend | -1.39 % | -1.74 % |
| Return benchmark | -1.89 % | -1.90 % |
Fund Holdings
Fund Holdings
| Top 10 Holdings Securities | Coupon | Country | Base currency | Proportion |
|---|---|---|---|---|
| Brazil Notas do Tesouro Nacional Serie 01.01.2031 | 9.76 | Brazil | BRL | 5.71 % |
| European Bank for Reconstruction & Deve 14.03.2031 | 6.75 | SupraNational | INR | 5.28 % |
| Malaysia Government Bond 05.07.2034 | 3.83 | Malaysia | MYR | 4.67 % |
| Indonesia 15.03.2034 | 8.38 | Indonesia | IDR | 4.47 % |
| Thailand Government Bond 17.12.2031 | 2.00 | Thailand | THB | 3.72 % |
| Republic of Poland Government Bond 25.01.2030 | 5.00 | Poland | PLN | 3.19 % |
| South Africa Government Bond 31.01.2040 | 9.00 | South Africa | ZAR | 3.11 % |
| Malaysia Government Bond 15.06.2028 | 3.73 | Malaysia | MYR | 3.05 % |
| Czech Republic Government Bond 13.03.2031 | 1.20 | Czech Republic | CZK | 3.02 % |
| Thailand Government Bond 20.06.2031 | 3.65 | Thailand | THB | 2.63 % |
| Fund Holdings: 56 | ||||
| Show all | ||||
Distribution by country
Distribution by country
| Country | Proportion | Change (%-Points) |
|---|---|---|
| SupraNational | 13.51 % | 0.65 % |
| Malaysia | 9.68 % | -0.22 % |
| Brazil | 8.79 % | 0.19 % |
| Indonesia | 8.47 % | -0.24 % |
| Mexico | 7.80 % | -0.08 % |
| Poland | 7.72 % | 1.91 % |
| Thailand | 7.54 % | -0.11 % |
| South Africa | 6.40 % | -2.80 % |
| Czech Republic | 4.48 % | -0.01 % |
| Other | 25.62 % | -1.18 % |
Distribution by region
| Region | Proportion |
|---|---|
| Asia | 37.39 % |
| Latin America | 31.01 % |
| Eastern Europe | 18.76 % |
| Africa | 10.52 % |
| Caribbean | 0.52 % |
| Other | 1.80 % |
Distrubution by currency
| Base currency | Proportion |
|---|---|
| INR | 13.60 % |
| Brazilian real (BRL) | 11.87 % |
| Malaysian Ringgit (MYR) | 9.72 % |
| Indonesian Rupiah (IDR) | 9.70 % |
| Mexican peso (MXN) | 9.21 % |
| Polish zloty (PLN) | 7.83 % |
| THB | 7.52 % |
| South African rand (ZAR) | 6.50 % |
| CZK | 4.54 % |
| Colombian peso (COP) | 4.13 % |
| Other | 15.39 % |
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Risk
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Risk Scale
The risk indicator indicates the fund's risk level compared to other products. The classification may change and is not necessarily a reliable indicator of the future risk profile.
Duration
Distribution by issuer
| Distribution by issuer | Proportion |
|---|---|
| Mortgage bonds | 0.00 % |
| Government bonds | 93.23 % |
| QUASI-soverreign | 1.73 % |
| Company | 1.86 % |
| Cash | 3.18 % |
Rating Distribution
| Rating Distribution | Proportion |
|---|---|
| Average rating | BBB |
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Fees and Expenses
Fees and Expenses
| Fees and Expenses | Running approx. | Indirect Trade Cost | Subscription | Redemption |
|---|---|---|---|---|
| Local Currency Bonds I EUR Acc | 0.62 % | 0.29 % | 0.31 % | 0.41 % |
Documents
Key Information
Key Information per. 30/4-25
| ISIN | DK0060646636 |
| Danish VP Code | 6064663 |
| Inception of Share Class | 21.09.2015 |
| Benchmark | GBI-EM GLO Diversified unhedged/EUR |
| Listed | No |
| Accumulated | No |
| AGM (annual general meeting) | 27.03.2025 |
| Rec. investment horizon | Min. 4 years |
| Portfolio Manager | Sydbank EM Debt Team |
| Base currency | EUR |
| Expected annual costs | 0.62 % |
| Indirect Trade Cost | 0.29 % |
| Share Class Assets (m) | 1 EUR |
| Total Assets (m) | 139 EUR |
| Denomination | 1000 |
| Tax rate 2023 | 1944.85 EUR |
| NAV ultimo April 2025 | 1911.06 |
| Tax Rate | - |
| Fund Holdings | 56 |
| Income type | Capital income |
| Taxation | Stock taxation |
| Dividend (2024) | - |
| Year to Date | -1.74 % |
| Deviation + (1 year) (per. 31/3-25) | 6.49 |
| Deviation + (3 years) (per. 31/3-25) | 5.99 |
| Sharpe Ratio (3 Years) (per. 31/3-25) | 0.13 |
| Yield to Maturity | 8.22 % |
| Average Duration | 5,43 |