BL Bond Emerging Markets Euro
Bond funds
Data as of 21/01/2021
Risk level
| Low |  | High |
Recommended investment horizon : > 3 years Performance
Performance as at 21/01/2021
Composition
| Asset breakdown |
| Bonds | 91,09 % |
| Cash | 8,91 % |
| Breakdown by currency |
| EUR | 98,57 % |
| USD | 1,43 % |
| Main positions |
| Peru 2016 3.75% 01-03-2030 | 2,72 % |
| Peru 2015 2.75% 30-01-2026 | 2,38 % |
| Corporacion Nacional Del Cobre De Chile 2014 2.25% 09-07-2024 | 2,23 % |
| Colombia 2016 3.875% 22-03-2026 | 2,17 % |
| Sinopec Group Overseas Development (2015) Ltd 2015 1% 28-04-2022 | 2,09 % |
Strategy
Investment objective and policy
The fund invests in bonds (sovereign/quasisovereign/parastatal) of emerging market countries. It also invests in bonds of industrialised countries (issued in emerging market currencies)and to a lesser extent in corporate bonds (of emerging market and industrialised countries).
The fund is denominated in euros; the fund's
investments are principally in euros and US
dollars as well as local currencies. The fund's
objective is to generate regular income.
Management report - 3rd Quarter 2020
Emerging market debt gained nearly 1.83% in euros in the third quarter of 2020 according to the JP Morgan Euro EMBI Global Diversified index. The yield spread narrowed by nearly 27 basis points to 233 basis points at the end of the quarter.
Within the asset class, we are seeing divergences widen between countries. China is posting a clear rebound in industrial activity and this is boosting other economies in the region. However, in India, the worsening health situation is weighing on growth prospects. With the exception of Argentina and Turkey (Turkey's central bank raised interest rates by 2 percentage points to 10.25% on 24 September), inflation remains low in all emerging market countries, despite currency depreciation and the adoption of expansionary measures.
The Federal Reserve's extraordinary monetary easing gives emerging market central banks some leeway. In their turn, they are adopting various accommodative measures, including quantitative easing. The markets are reacting favourably. However, monetary stimulus is not enough for some countries. The weakest emerging market economies are the most affected. Undiversified oil-exporting economies are already announcing payment defaults (e.g. Ecuador). Ecuador and Argentina completed a debt restructuring in August.
General information
| Net Asset Value |
| Calculated | Every business day |
| NAV class B capitalisation shares (21/01/2021) | 100,15 USD |
| CODES | ISIN capitalisation code : LU1008595487
WKN capitalisation code : A1XBE5
|
| Net assets (million) | 293,15 USD |
| Launch date | 28/03/2014 |
