Emerging Market Hard Currency Bonds
Emerging Markets
4.3 %
Per 04/07/25 16:30
LOW RISK
HIGH RISK
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DK0061067303
0.57 %
Profile
The Structural Investment Case for Emerging Markets Bonds
- Emerging and frontier markets are typically low- or middle-income countries based on GDP per capita.
- These countries often have growing populations and lower capital bases, leading to structurally higher growth and income convergence with developed nations.
- Many emerging markets benefit from favorable demographics, urbanization, and industrialization, supporting long-term economic growth.
- On average, emerging market sovereigns have lower debt-to-GDP ratios than developed countries, reducing default risks.
- Emerging markets generally exhibit strong fundamentals, with decreasing inflation, improving credit ratings, and improved institutions like independent central banks.
- Sovereign bonds in emerging markets offer a significant yield premium over developed market bonds, with improving fundamentals leading to lower interest rates and credit spreads over time.
- Emerging markets operate under distinct monetary and fiscal conditions, providing diversification benefits.
- However, fragile institutions and unsustainable government practices can pose risks to investors. Therefore, Sydinvest considers extensive ESG (Environmental, Social, and Governance) data when constructing portfolios.
The Profile for Sydinvest Emerging Markets Bonds
- The fund invests in sovereign bonds from emerging and frontier markets, aiming to provide excess returns through active portfolio management.
- The investment philosophy recognizes risk premiums arising from emerging market convergence.
- Lower human development and income levels increase institutional and market risks, contributing to the country risk premium, which includes political, inflation, trade, current account balance, and government budget funding risks. Growth and debt payment dynamics, along with government sustainability, are thoroughly evaluated to identify opportunities.
- Lower market cap of emerging debt issues creates liquidity premiums, revealed through systematic relative value analysis of investor base, issuer characteristics, and issuer quality.
- These risk premiums cause market prices to deviate from long-term fair values, making active management essential to unlock value.
- Sydinvest leverages its decade-long experience in hard and local currency emerging markets, with an efficient and agile investment team.
The fund's investment profile
About the philosophy behind the fund
Read moreInvestment Profile
The fund invests in government bonds issued in hard currencies (e.g. dollars and euros) from high-yielding countries in Eastern Europe, Asia, Latin America, Africa and the Middle East. The objective is to provide investors with excess returns to the benchmark through active portfolio management.
Meet the team behind it
Those who manage your investment
Read more
Thomas Brund
Head of EM Debt
Chief Portfolio Manager at Sydbank's Asset Management - Bonds, with primary focus on global allocation in hard and local currencies and the overall investment process. Thomas Brund has a bachelor's degree in finance.
Rune Juel Hansen
Senior Portfolio Manager
Senior portfolio manager and part of Sydbank's Emerging Markets Debt Team with primary focus on hard currency as well as quantitative analysis, risk management and security selection in all High-Income Countries portfolios. Rune Juel Hansen has a master's degree in finance.
Thomas Rytter
Quantitative Analyst
Quantitative analyst in Sydbank's bond research with primary focus on developing and maintaining the risk management and pricing systems used by the team. Thomas Rytter holds a master's degree in mathematics and economics.
Hans Christian Bachmann
Senior Economist
Senior analyst and part of Sydbank's Emerging Markets Debt Team with primary focus on political and economic analysis at global and country level and responsible for developing Sydbank's process for ESG at country level. Hans Christian Bachmann has a master's degree in Economics.
Anette Melchiorsen
Senior Portfolio Manager
Senior trader and part of Sydbank's Emerging Markets Debt Team with primary focus on all aspects of bond, currency and derivative trading in the High-Rate Countries portfolios. Anette Melchiorsen has a master's degree in economics.
Jens Erik Boesen
Senior Portfolio Manager
Senior Portfolio Manager and part of Sydbank's Emerging Markets Debt Team with primary focus on local currency as well as the team's COSMO valuation model, risk management and security selection in all local currency portfolios. Jens Erik Boesen has a master's degree in Economics.
The practical
Which funds you can invest with
Read moreWho can invest in the fund?
You can invest both free funds, pension funds and funds from companies in the fund. Ask your bank what is best for you.
Returns (according to costs)
Returns
Per 04/07/25 16:30Today's Return +0.06 %
Return Jun: +2.24 %
Return YtD +4.30 %
NAV per. 04/07/25 16:30
| Today's Return | 0.06 % |
| Return year to date, % | 4.30 % |
| Sell | |
| Buy | |
| NAV ultimo | 97.89 |
| Total Assets (m) | 2,729 DKK |
Returns - Last Update 01/07/25
| Return year to date, % | 3.88 % |
| 1 Year | 7.87 % |
| 3 Years | 22.09 % |
| 5 Years | -1.41 % |
| 7 Years | - |
| 10 Years | - |
Return & Dividend
| Year | Returns | Dividend | Income on equity | Capital income | NAV per unit (End Year) | |
|---|---|---|---|---|---|---|
| 2024 | 5.00 % | 0.00 | 0.00 | 0.00 | 93.85 | |
| 2023 | 10.55 % | 0.00 | 0.00 | 0.00 | 89.38 | |
| 2022 | -21.97 % | 0.00 | 0.00 | 0.00 | 80.85 | |
| 2021 | -3.81 % | 0.00 | 0.00 | 0.00 | 103.48 | |
| 2020 | 3.09 % | 5.80 | 0.00 | 5.80 | 113.44 | |
| 2019 | 13.10 % | 1.60 | 0.00 | 1.60 | 111.77 | |
| 2018 | -1.18 % | 0.00 | 0.00 | 0.00 | 98.82 | |
| See more | ||||||
Latest trends
| Emerging Market Hard Currency Bonds | Return June | Return YtD |
|---|---|---|
| Latest trend | 2.24 % | 3.88 % |
| Return benchmark | 2.38 % | 4.52 % |
Fund Holdings
Fund Holdings
| Top 10 Holdings Securities | Coupon | Country | Base currency | Proportion |
|---|---|---|---|---|
| Peruvian Government International Bond 15.01.2034 | 3.00 | Peru | USD | 4.00 % |
| Romanian Government International Bond 25.05.2034 | 6.00 | Romania | USD | 3.67 % |
| Bermuda Government International Bond 15.07.2032 | 5.00 | Bermuda | USD | 3.55 % |
| Hungary Government International Bond 22.05.2028 | 6.13 | Hungary | USD | 3.04 % |
| Colombia Government International Bond 15.05.2049 | 5.20 | Colombia | USD | 3.03 % |
| Mexico Government International Bond 14.08.2041 | 4.28 | Mexico | USD | 2.80 % |
| Republic of South Africa Government Int 30.09.2049 | 5.75 | South Africa | USD | 2.39 % |
| Mexico Government International Bond 09.02.2035 | 6.35 | Mexico | USD | 2.22 % |
| Oman Government International Bond 15.06.2026 | 4.75 | Oman | USD | 2.22 % |
| Latvia Government International Bond 30.07.2034 | 5.13 | Latvia | USD | 2.22 % |
| Fund Holdings: 107 | ||||
| Show all | ||||
Distribution by country
Distribution by country
| Country | Proportion | Change (%-Points) |
|---|---|---|
| Hungary | 8.00 % | 0.17 % |
| Chile | 6.83 % | -1.26 % |
| Colombia | 6.44 % | 0.22 % |
| Mexico | 5.93 % | 0.92 % |
| Turkey | 5.83 % | 3.60 % |
| Romania | 5.07 % | -1.76 % |
| Poland | 4.96 % | -0.06 % |
| Peru | 4.05 % | 0.72 % |
| Argentina | 3.83 % | 0.42 % |
| Other | 49.07 % | 0.30 % |
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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.
Fees and Expenses
Fees and Expenses
| Fees and Expenses | Running approx. | Indirect Trade Cost | Subscription | Redemption |
|---|---|---|---|---|
| Emerging Market Hard Currency Bonds | 0.57 % | 0.50 % | 0.51 % | 0.51 % |
Key Information
Key Information per. 30/6-25
| ISIN | DK0061067303 |
| Danish VP Code | 6106730 |
| Inception of Share Class | 31.08.2018 |
| Benchmark | EMBI Global Diversified |
| Listed | No |
| Accumulated | Yes |
| AGM (annual general meeting) | 27.03.2025 |
| Rec. investment horizon | Min. 4 years |
| Portfolio Manager | Thomas Brund |
| Base currency | DKK |
| Expected annual costs | 0.57 % |
| Indirect Trade Cost | 0.50 % |
| Share Class Assets (m) | 2,717 DKK |
| Denomination | 100 |
| Tax rate 2023 | 93.85 DKK |
| NAV ultimo June 2025 | 97.49 |
| Tax Rate | - |
| Fund Holdings | 107 |
| Income type | Capital income |
| Taxation | Realisationsbeskattet |
| Dividend (2024) | 0.00 |
| Year to Date | 3.88 % |
| Deviation + (1 year) (per. 28/5-25) | 4.61 |
| Deviation + (3 years) (per. 28/5-25) | 10.81 |
| Sharpe Ratio (3 Years) (per. 28/5-25) | 0.03 |
| Yield to Maturity | 7.08 % |
| Average Duration | 6,35 |