Local Currency Bonds EUR Acc

Emerging Markets

Key Information

  • ISIN

    DK0060646636

  • Inception

    21.09.2015

  • Return Profile

    Dividend

  • Dividend

    0.00 EUR

  • Risk Class

    4

  • Share Class Assets (m)

    2 EUR

  • ÅOP (Costs)

    0,71 %

  • Indirect Trade Cost

    0.21 %

  •  
  • KIID

  • Prospectus

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Profile

The Structural Investment Case for EM Local Currency 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.
     
  • The current low-yield environment in the developed world amplifies this structural effect. It creates a need for investor diversification that will support long-term demand for emerging debt assets.
     
  • Except for some notable exceptions, 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.
     
  • In the recent decade, the number of countries with sufficiently developed market structures to open up local currency based debt issues have increased. This gives rise to a new breed of local institutional investors that increase liquidity and offer states an opportunity to fund their budgets without the FX risk associated with USD or EUR denominated debt.
     
  • However, fragile institutions and unsustainable conduct of government can still cause risks to investors and it is therefore Sydinvest considers a significant amount of data on Environmental (E), Social (S) and governance (G) factors (ESG) when constructing the portfolios.
     
  • The emerging debt asset class has more than 18 trillion USD in market cap, but it still only count for approximately 20% of the world’s total GDP thus far below levels found in the developed markets. At the same time, roughly 70% or more of the World’s populations live in the 80 most common emerging market countries. Since only the countries with sufficient institutional strength can issue local currency debt, the case for market expansion and long-term investment opportunities are indeed vast and well founded.   


The Sydinvest EM funds and their advisor, the Sydbank EM Debt Team, can be explored in further detail on the eVestment database, a Nasdaq company, that provides a leading cloud-based data platform for institutional investors and their advisors.

On eVestment, Sydbank EM Debt present its leading emerging market strategies and investment capabilities together with other leading investment managers  thus allowing our clients a comprehensive global database to monitor our performance and stay informed. In case you require access to the database or further information on the Sydinvest EM strategies not found here, please do not hesitate to contact:

Christian Farø - Senior Institutional Sales Manager
T: +45 74 37 37 22 | M: +45 21 46 79 40 | christian.faroe@sydbank.dk
Kapitalforvaltning | Peberlyk 4 | DK-6200 Aabenraa
Sydbank A/S | CVR-nr. DK 12626509


The Profile for Sydinvest EM Local Currency Bonds

  • The fund invest in local currency 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 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 a small yet highly efficient and agile team.

    Explore the Sydinvest EM Investment Philosophy

    Study the details of the Investment Process

    Explore Sydinvest EM and the EM Debt Team on eVestment Analytics

 

  • Portfolio Manager

Returns

Date 03/12/21 16:28

Today's Return: +0.24%

Return Nov.: +0.44%

Return YtD: -0.42%

NAV per. 03/12/21 16:28

Today's Returns 0.24 %
Return year to date, % -0.42 %
Redemption 1810.80
Subscription 1820.20
NAV 1815.50
Total Assets (m) 2 EUR

Returns - Last Update 01/12/21

Return year to date, % -0.44 %
1 Year 0.81%
3 Years 7.98%
5 Years 7.44%
7 Years 8.55%
10 Years 19.18%

NAV development

Export graph-data
Include:

Latest trends

Local Currency Bonds I EUR AccReturn NovemberReturn YtD
Latest trend0.44%-0.44%
Return benchmark0.00%-2.33%

Fund Holdings

Fund Holdings

Top 10 HoldingsCouponCountryBase currencyProportion
JPMorgan Chase Bank NA 08.12.20263.12USACNY7.69%
Mexican Bonos 03.06.20277.50MexicoMXN5.00%
Czech Republic Government Bond 26.06.20261.00Czech RepublicCZK4.40%
ICBC Standard Bank PLC 08.06.20272.85ChinaCNY4.25%
South Africa Government Bond 31.01.20409.00South AfricaZAR4.12%
Indonesia 15.06.20328.25IndonesiaIDR3.86%
Brazil 01.01.20259.76BrazilBRL3.52%
Russian Federal Bond - OFZ 14.03.20296.70RussiaRUB3.40%
Peruvian Gov. 12.08.20326.15PeruPEN3.37%
Poland 25.07.20262.50PolandPLN3.29%
Fund Holdings: 54
Show all Holdings

Distribution by country

Distribution by country

CountryProportionChange (%-Points)
Mexico9.32%1.27%
Russia8.37%-0.10%
Indonesia8.31%-0.29%
Brazil8.17%-0.37%
USA7.69%0.74%
South Africa7.51%0.15%
Czech Republic7.29%4.15%
Malaysia5.46%2.41%
Thailand5.32%0.17%
Other32.55%-8.90%

 

Distrubution by currency

Base currencyProportion
Mexican peso (MXN)11.09%
Yuan Renminbi (CNY)11.00%
Indonesian Rupiah (IDR)10.71%
Brazilian real (BRL)8.19%
Russian ruble (RUB)8.10%
South African rand (ZAR)7.63%
CZK7.46%
Polish zloty (PLN)5.08%
THB4.91%
Malaysian Ringgit (MYR)4.78%
Other21.05%

Net Currency Exposure

Net Currency Exposure
Base currencyProportion
HUF1.05%
MXN11.09%
PLN5.08%
RON1.25%
RUB8.10%
ZAR7.63%
ARS0.00%
BRL8.19%
CZK7.46%
DKK1.77%
EUR0.02%
TRY1.91%
USD0.98%
CLP1.02%
CNY11.00%
COP3.49%
EGP3.02%
GHS1.04%
IDR10.71%
KZT1.03%
MYR4.78%
PEN2.10%
RSD0.95%
THB4.91%
UAH1.01%
UYU0.42%

Distribution by region

RegionProportion
Asia30.92%
Eastern Europe28.33%
Latin America26.29%
Africa12.15%
Other2.32%

Risk

Lower risk

Higher risk

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7

Potentially lower rewards

Potentially higher rewards

Risk Scale

Placement of the fund on the scale is determined by the fluctuations of the funds NAV over the past five years.

Maturity Distribution

Maturity DistributionProportion
0-1 Year6.14%
1-3 Year7.70%
3-5 Year17.60%
5-7 Year35.69%
7-10 Year11.38%
10+ Year21.48%
Total100.00%

Duration

Distribution by issuer

Distribution by issuerProportion
Mortgage bonds0.00%
Government bonds90.46%
QUASI-soverreign2.05%
Company3.96%
Cash3.54%

Rating Distribution

Rating DistributionProportion
BBB- and above66.90%
BB- to BB+6.09%
B+ or below0.34%
Average ratingBBB

Fees and Expenses

Fees and Expenses

Fees and ExpensesTotal Management FeeÅOP (Costs)Indirect Trade Cost SubscriptionRedemption
Local Currency Bonds EUR Acc0.63 %0.71 %0.21 %0.26 %0.26 %

Key Information per. 30/11-21

ISINDK0060646636
Danish VP Code6064663
Inception of Share Class21.09.2015
BenchmarkGBI-EM GLO Diversified unhedged/EUR
ListedNo
AccumulatedYes
AGM (annual general meeting)01.04.2021
Rec. investment horizonMin. 4 years
Portfolio ManagerSydbank EM Debt Team
Base currencyEUR
TER (incl. depositary and adm.exp)0,63 %
ÅOP (Costs)0,71 %
Indirect Trade Cost 0.21 %
Share Class Assets (m) 2 EUR
Total Assets (m)50 EUR
Denomination1000
NAV ultimo 20201823.12 EUR
NAV ultimo November 20211815.13
Tax Rate-
Fund Holdings54
Dividend (2020)0.00
Year to Date-0,44 %
Deviation + (1 year) (per. 29/10-21)5.20
Deviation + (3 years) (per. 29/10-21)10.48
Sharpe Ratio (3 Years) (per. 29/10-21)0.34
Yield to Maturity5,90 %
Average Duration4,92