Sydinvest EM Business Philosophy
Danish Heritag
- Denmark is one of the world's remaining S&P AAA-rated countries with a stable outlook.
- Sydinvest EM is an institutional UCITS fund managed by Sydbank A/S, Denmark’s 4th largest bank.
- Operated by Syd Fund Management in Aabenraa, Southern Denmark, we uphold core values of strong investment skills, close client relations, and long-term partnerships.
Independent & Focused
- Sydbank Asset Management (SAM) is the dedicated investment advisor to Sydinvest EM.
- Our strategies span various EM debt asset classes and blended products.
- We employ skilled and experienced portfolio teams with high autonomy.
- We leverage Sydbank Group Services for mandate compliance, flexible execution, and top-tier client services.
Fit for Purpose
- We believe in lean organizational resources tailored to each task.
- Our teams use sophisticated proprietary systems and third-party operational services for automated processes and efficient client reporting.
Client Focused
- Our clients are our partners, and we build long-term relationships.
- We aim to deliver high-quality returns and offer top-tier services, flexible research, reporting, and full data transparency for insurance and pension investors.
Highly Competitive
- Sydinvest EM offers competitive prices for EM Debt investments.
- We believe in providing true quality at reasonable prices and prioritize long-term relationships over short-term revenue gains.
The ESG and Investment Process integration
Sydinvest’s ESG process for sovereign emerging markets bonds is used for all our funds. It includes more ESG data and tougher criteria compared to a traditional risk-based ESG analysis.
The ESG approach explicitly excludes countries subject to weapons sanctions and quasi-sovereign companies involved in fossil fuels business areas.
The global EM sovereign opportunity set is analyzed using different ESG models and screening for normative criteria such as sanctions.
The principle is simple - each country must pass through all three evaluations:
Level 1: No relevant sanctions
Level 2: Sufficient level and progress on the Sydbank proprietary ESG model
Level 3: Sufficient level and progress on the UN Sustainable Development Goals Index (SDG Index).
Sydbank focuses on countries belonging to the JP Morgan EMBI Global Diversified Index (EMBI GD) as peer group consisting of about 70 emerging market countries. They have very heterogeneous characteristics in terms of macro-economic and political factors, but together they form a strong representation of low- and middle-income developing countries who issue sovereign bonds.
Sydbank use the EMBI GD Index to calculate relevant ESG score thresholds for quantitative screening metrics based on mean and standard deviations. This approach is used consistently on both Sydbank’s proprietary ESG model and when analyzing the Sustainable Development Goals Index.
The Sydbank ESG model offers several advantages for the investment process including making an early capture of improving countries and avoid “seemingly good” countries that turn towards a negative ESG performance path.
Excluded contries
| Land | Ekskluderet land |
|---|---|
| Afghanistan | |
| Amerikansk Samoa | |
| Angola | |
| Anguilla | |
| Antigua and Barbuda | |
| Azerbaijan | |
| Belarus | |
| Burkino Faso | |
| Burundi | |
| Cambodja | |
| Cameroon | |
| Central Afrikanske Republik | |
| Chad | |
| China | |
| Cuba | |
| Den Demokratiske Republik Congo | |
| Republikken Congo | |
| Djibouti | |
| Ækvatorialguinea | |
| Eritrea | |
| Eswatini | |
| Etiopien | |
| Fiji | |
| Gabon | |
| Guam | |
| Guatemala | |
| Guinea | |
| Guinea-Bissau | |
| Haiti | |
| Iran | |
| Irak | |
| Kirgisistan | |
| Laos | |
| Libanon | |
| Lesotho | |
| Liberia | |
| Libyen | |
| Madagaskar | |
| Malawi | |
| Mali | |
| Mauretanien | |
| Mozambique | |
| Myanmar | |
| Nicaragua | |
| Niger | |
| Nigeria | |
| Nordkorea | |
| Palau | |
| Panama | |
| Papua New Guinea | |
| Rusland | |
| Rwanda | |
| Samoa | |
| Saudi Arabien | |
| Somalia | |
| Sydsudan | |
| Sudan | |
| Syrien | |
| Tadsjikistan | |
| Trinidad & Tobago | |
| Turkmenistan | |
| US Virgin Islands | |
| Uzbekistan | |
| Vanuatu | |
| Venezuela | |
| Vestbredden og Gazastriben | |
| Yemen | |
| Zambia | |
| Zimbabwe |
The charges related to investing in Sydinvest Emerging Markets:
- Subscription charge
- Redemption charge
- Management Fee
Sydinvest Emerging Markets is open to receiving subscription and redemption orders on a daily basis and issue or redeem shares on a T+2 settlement cycle. The pricing method in Sydinvest Emerging Market is based on a swinging price system based on an official mid-market NAV. The price system is ensuring that any investor who enters or exits the fund is paying for the related transaction costs.
The result of the swinging pricing system ensures that Sydinvest Emerging Markets can protect the long-term return of our investors from being affected by the trading activity undertaken by individual investors. It also ensures that the funds can manage large transactions without affecting the total return of the funds.
Subscription Charges
The charge of subscription is added to the NAV to cover the actual cost of establishing the portfolio positions related to the subscribed shares.
In extraordinary market conditions where market spreads and charges of trading the underlying securities vary considerably, the subscription charges above can differ substantially in order to cover the costs associated with the subscription.
Please refer to the prospectus of Sydinvest Emerging Markets for more details.
Redemption Charges
The charge of redemption is deducted from the NAV to cover the actual cost of selling the portfolio positions related to the redeemed shares.
In extraordinary market conditions where market spreads and charges of trading the underlying securities vary considerably, the redemption charges above can differ substantially in order to cover the costs associated with the redemption.
Please refer to the prospectus of Sydinvest Emerging Markets for more details.
Management Fee
The fixed annual costs cover all charges of fund management, administration, custody charges, marketing and distribution.
Please refer to the prospectus of Sydinvest Emerging Markets for more details on administrative costs.