Sustainable Bonds

Emerging Markets

Key Information

  • ISIN

    DK0061067303

  • Inception

    31.08.2018

  • Return Profile

    Dividend

  • Dividend

    5.80 DKK

  • Risk Class

    4

  • Share Class Assets (m)

    1,605 DKK

  • ÅOP (Costs)

    0,76 %

  • Indirect Trade Cost

    0.34 %

  •  
  • KIID (in Danish)

  • Prospectus

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Profile

The Investment Case for EM Sustainable Bonds

  • 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 Bonds 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 diversified portfolio of hard 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 the 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, 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 Bonds Fund offers investors a unique opportunity to invest with a normative and impact orientated view in emerging market bonds.

 

Want to know more?

Explore the Sydinvest EM Investment Philosophy

Study the details of the Investment Process

Explore Sydinvest EM and the Sydbank EM Debt Team on eVestment Analytics

Explore the ESG methodology and  the fund’s investment process is further. Request a presentation prepared by Sydbank, the investment advisor to Sydinvest EM.

Request a fund presentation here

Read the fund’s prospectus here

 

  • Portfolio Manager

Returns

Date 12/05/21 16:31

Today's Return: -0.23%

Return Apr.: +2.38%

Return YtD: -2.43%

NAV per. 12/05/21 16:31

Today's Returns -0.23 %
Return year to date, % -2.43 %
Redemption 104.60
Subscription 105.60
NAV 105.10
Total Assets (m) 1,605 DKK

Returns - Last Update 01/05/21

Return year to date, % -3.03 %
1 Year 16.89%
3 Years 0.00%
5 Years 0.00%
7 Years 0.00%
10 Years 0.00%

NAV development

Export graph-data

Include:

Latest trends

Sustainable BondsReturn AprilReturn YtD
Latest trend2.38%-3.03%
Return benchmark1.94%-2.90%

Fund Holdings

Fund Holdings

Top 10 HoldingsCouponCountryBase currencyProportion
South Africa 12.10.20284.30South AfricaUSD6.11%
Indonesia 17.02.20376.63IndonesiaUSD4.60%
Egypt Government International Bond 11.04.20316.38EgyptEUR4.52%
Rep. of Ghana 14.10.203010.75GhanaUSD4.43%
Senegal Bond 13.03.20284.75SenegalEUR4.21%
Qatar Government International Bond 23.04.20485.10QatarUSD3.53%
Mexico Government International Bond 18.09.20271.35MexicoEUR3.24%
Uruguay 18.06.20505.10UruguayUSD3.13%
Ukraine Government International Bond 20.06.20266.75UkraineEUR2.77%
Chile Government International Bond 02.07.20310.83ChileEUR2.61%
Fund Holdings: 78
Show all Holdings

Distribution by country

Distribution by country

CountryProportionChanges in percentage points
Indonesia8.40%0.54%
Mexico7.80%-0.10%
South Africa6.63%0.50%
Ukraine6.04%0.37%
Egypt5.03%0.59%
Ghana5.03%-0.18%
Romania5.01%0.15%
Dominican Republic4.75%0.06%
Qatar4.69%0.69%
Other46.63%0.01%

Distribution by region

RegionProportion
Latin America34.41%
Africa25.47%
North America19.71%
Eastern Europe14.68%
Asia11.38%
Middle East7.13%
Caribbean4.74%
Other-17.52%

Maturity Distribution

Maturity DistributionProportion
0-1 Year2.19%
1-3 Year3.62%
3-5 Year6.85%
5-7 Year24.47%
7-10 Year0.00%
10+ Year44.39%
Total100.00%

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.

Fees and Expenses

Fees and Expenses

Fees and ExpensesTotal Management FeeÅOP (Costs)Indirect Trade Cost SubscriptionRedemption
Sustainable Bonds0.62 %0.76 %0.34 %0.46 %0.46 %

Key Information per. 30/4-21

ISINDK0061067303
Danish VP Code6106730
Inception of Share Class31.08.2018
BenchmarkJP Morgan EM Bond Index Gl DKK
ListedNo
AccumulatedYes
AGM (annual general meeting)01.04.2021
Rec. investment horizonMin. 4 years
Portfolio ManagerThomas Brund
Base currencyDKK
TER (incl. depositary and adm.exp)0,62 %
ÅOP (Costs)0,76 %
Indirect Trade Cost 0.34 %
Share Class Assets (m) 1,592 DKK
Total Assets (m)1,608 DKK
Denomination100
NAV ultimo 2020113.44 DKK
NAV ultimo April 2021104.45
Tax Rate-
Fund Holdings78
Dividend (2020)5.80
Year to Date-3,03 %
Deviation + (1 year) (per. 29/4-21)9.67
Deviation + (3 years) (per. 29/4-21)-
Sharpe Ratio (3 Years) (per. 29/4-21)-
Yield to Maturity5,03 %
Average Duration7,64