Sustainable Blended Debt I USD Acc

Emerging Markets

Key Information

  • ISIN

    DK0060792372

  • Inception

    03.04.2017

  • Return Profile

    Dividend

  • Dividend

    0.00 USD

  • Risk Class

    4

  • Share Class Assets (m)

    82 USD

  • ÅOP (Costs)

    0,76 %

  • Indirect Trade Cost

    0.30 %

  •  
  • KIID

  • Prospectus

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Profile

The Investment Case for EM Sustainable Blended Debt

  • Emerging markets and Frontier countries generally belongs to the low or middle-income parts of the World when measured on GDP per capita.
  • The emerging debt asset class is growing, yet it still only counts 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, so the long-term opportunities for investors are vast and well founded.
  • Emerging countries typically have growing populations and lower capital bases compared to high income countries therefore they tend to grow structurally higher causing their income to converge towards that of more developed countries. 
  • When we consider sustainability in the context of this less developed part of the World, and especially with respect to sovereign debt, it is important to accept this fact and consider a broad set of indicators to understand the level of environmental (E), social (S) and governance (G) performance and its development.  We must consider how to set the boundaries within the investment universe by analyzing good ESG performers from poor ESG performers.
  • The UN 2030 Development Goals focus on the inequality in resources, income and institutional strengths that prevents emerging countries from obtaining a sustainable future. Sydinvest actively use targeted data on the countries SDG performance to understand the ESG risks that influence each state’s willingness and capability to honor its debt obligations towards its creditors. We bring the SDGs directly into the investment process.
  • The Sydinvest EM Sustainable Blended Debt Fund is an example of such a strategy.

 

Read our white paper about Introduction to ESG Integration and Sustainability Analysis of EM Debt

 

 

 

 


The ESG+ Strategy and the UN Sustainable Development Goals Index

  • The fund invest in a blended portfolio of hard and local currency sovereign bonds issued from emerging market and frontier countries. The objective is to provide investors with excess returns to the unrestricted benchmark through active portfolio management.
  • The fund invests with an active ESG approach that offers most extensive sovereign sustainability analysis developed by Sydbank. It includes more ESG data and tougher criteria compared to a traditional risk-based ESG analysis.
  • The ESG+ approach includes the global SDG Index that tracks countries implementation of the UN Sustainable Development Goals for 2030, it explicitly excludes countries subject to weapons sanctions and it excludes quasi-sovereign companies involved in fossil fuels business areas. Finally, it aims to include green sovereign bonds where such opportunities emerge.
  • The fund invests with an active conviction to select countries with good ESG and investment value as well as long-term upside potential.
  • Countries and their state-owned companies must live up to the ESG criteria set out by the portfolio team. If not, they will be excluded and instead the team will invest into alternative high conviction allocations that offers better value and equal risk. Hence, the strategy does not aim to replicate the benchmark and will accept short-term performance deviations because of that.
  • The Sydinvest EM Sustainable Blended Debt Fund offers investors a unique opportunity to invest with a normative and impact orientated view in emerging market bonds. To invest in emerging countries where the future path of investment value as well as fundamental human values are expected to thrive.

 

Want to know more?

The methodology to conduct the ESG screening and how it is integrated into the fund’s investment process is further described in this presentation prepared by Sydbank, the investment advisor to Sydinvest EM.

Request a fund presentation here

Read the fund’s prospectus here

Read the latest fund newsletter here.

  • Portfolio Manager

Returns

Date 03/12/21 16:28

Today's Return: +0.05%

Return Nov.: -2.31%

Return YtD: -6.53%

NAV per. 03/12/21 16:28

Today's Returns 0.05 %
Return year to date, % -6.53 %
Redemption 112.60
Subscription 113.45
NAV 113.03
Total Assets (m) 82 USD

Returns - Last Update 01/12/21

Return year to date, % -7.26 %
1 Year -4.50%
3 Years 11.23%
5 Years 0.00%
7 Years 0.00%
10 Years 0.00%

NAV development

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Latest trends

Sustainable Blended Debt I USD AccReturn NovemberReturn YtD
Latest trend-2.31%-7.26%
Return benchmark-2.04%-5.86%

Fund Holdings

Fund Holdings

Top 10 HoldingsCouponCountryBase currencyProportion
Mexican Bonos 03.06.20277.50MexicoMXN3.98%
Malaysia Government Bond 15.06.20283.73MalaysiaMYR2.64%
South Africa 12.10.20284.30South AfricaUSD2.58%
Indonesia 17.02.20376.63IndonesiaUSD2.43%
Colombian TES 28.04.20286.00ColombiaCOP2.35%
Egypt Government International Bond 11.04.20316.38EgyptEUR2.23%
Czech Republic Government Bond 26.06.20261.00Czech RepublicCZK2.19%
Senegal Bond 13.03.20284.75SenegalEUR2.09%
Rep. of Ghana 14.10.203010.75GhanaUSD2.09%
South Africa Government Bond 31.01.20409.00South AfricaZAR2.08%
Fund Holdings: 116
Show all Holdings

Distribution by country

Distribution by country

CountryProportionChange (%-Points)
Mexico10.66%-0.18%
Indonesia7.92%-1.15%
South Africa7.73%-0.70%
Brazil6.44%0.13%
Malaysia5.88%3.30%
Colombia5.07%-0.51%
Supranationals4.19%0.23%
Chile4.12%1.06%
Peru3.99%1.17%
Other44.01%-8.02%

Distribution by region

RegionProportion
Latin America33.54%
Africa19.43%
Eastern Europe19.15%
Asia17.83%
North America7.88%
Middle East3.89%
Caribbean2.32%
Other-4.04%

Maturity Distribution

Maturity DistributionProportion
0-1 Year6.78%
1-3 Year6.47%
3-5 Year16.29%
5-7 Year21.59%
7-10 Year14.65%
10+ Year34.22%
Total100.00%

Distrubution by currency

Base currencyProportion
US dollar (USD)52.05%
Mexican peso (MXN)7.22%
Indonesian Rupiah (IDR)5.61%
Malaysian Ringgit (MYR)5.42%
South African rand (ZAR)4.70%
Brazilian real (BRL)4.68%
CZK3.72%
Polish zloty (PLN)3.04%
Colombian peso (COP)2.89%
Kazakh tenge2.57%
Other8.09%

Risk

Lower risk

Higher risk

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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.

Distribution by issuer

Distribution by issuerProportion
Mortgage bonds0.00%
Government bonds89.53%
QUASI-soverreign3.78%
Company0.86%
Cash5.83%

Duration

Rating Distribution

Rating DistributionProportion
Average ratingBBB-

Net Currency Exposure

Net Currency Exposure
Base currencyProportion
HUF0.48%
MXN7.22%
PLN3.04%
RON0.67%
ZAR4.70%
ARS0.00%
BRL4.68%
CZK3.72%
DKK0.01%
EUR-0.26%
USD52.05%
CLP0.71%
COP2.89%
EGP0.92%
GHS0.51%
INR1.00%
IDR5.61%
KZT2.57%
MYR5.42%
PEN1.38%
PHP1.49%
RSD0.48%
UAH0.50%
UYU0.20%

Fees and Expenses

Fees and Expenses

Fees and ExpensesTotal Management FeeÅOP (Costs)Indirect Trade Cost SubscriptionRedemption
Sustainable Blended Debt I USD Acc0.66 %0.76 %0.30 %0.34 %0.34 %

Key Information per. 30/11-21

ISINDK0060792372
Danish VP Code6079237
Inception of Share Class03.04.2017
Benchmark50%JPMorganEMBIGl+50%JPMorganGloDiv
ListedNo
AccumulatedYes
AGM (annual general meeting)01.04.2021
Rec. investment horizonMin. 4 years
Portfolio ManagerSydbank EM Debt Team
Base currencyUSD
TER (incl. depositary and adm.exp)0,66 %
ÅOP (Costs)0,76 %
Indirect Trade Cost 0.30 %
Share Class Assets (m) 81 USD
Denomination100
NAV ultimo 2020120.93 USD
NAV ultimo November 2021112.15
Tax Rate-
Fund Holdings117
Dividend (2020)0.00
Year to Date-7,26 %
Deviation + (1 year) (per. 29/10-21)5.59
Deviation + (3 years) (per. 29/10-21)10.29
Sharpe Ratio (3 Years) (per. 29/10-21)0.41
Yield to Maturity5,50 %
Average Duration6,01