High Annuity Funds
– ISI Emerging Market Bonds
Investment philosophy
The fund invests mainly in high-yield government bonds issued in USD or EUR from emerging markets in Eastern Europe, Asia, Latin America and Africa. The fund may also invest in bonds issued in local currency. These countries represent a credit risk (the risk that governments cannot repay their loans is considered to exceed that of traditional government bonds issued by industrialised countries, eg USA, Germany and Denmark; as a result the expected bond return is usually high compared with the return of for instance a Danish government bond). The greater part of the fund's currency positions are hedged to DKK or EUR. The fund’s currency positions in DKK and EUR must make up at least 60% of assets, and with the exception of DKK and EUR no currency position may represent more than 10% of fund assets.
Target group
The fund is typically designed for investors seeking higher returns than those offered by government bonds from mature markets. Investors are aware that the high return potential is ascribable in part to the credit risk associated with investments in emerging markets and that return is dependent on developments in bond prices and to a lesser extent exchange rates. The fund may experience considerable price fluctuations, which may generate negative returns from time to time. The typical investor has an investment horizon of at least four years and is not looking for annual dividend payouts.
Reasons to invest in ISI Emerging Market Bonds
- Great potential for achieving attractive returns. We currently expect Emerging Markets bonds to generate an excess yield of 2-4 percentage points compared with European bonds.
- Danish and European bond yields have been low in recent years, making investments in Emerging Markets bonds a useful alternative.
- By investing in ISI Emerging Market Bonds you obtain risk diversification as Emerging Markets funds are not affected by the international business conditions to the same extent as traditional equities and bond funds.
- Easy access to broad investments in Emerging Markets bonds.
Investment horizon
The recommended investment horizon is a minimum of four years.
Your advantages
- Your savings are pooled with many others and you win economies of scale on eg transaction costs.
- You obtain significant risk diversification as each ISI fund invests in multiple securities. The result is a lower price risk and more stable return when comparing with similar investments in individual shares and bonds.
- Your securities savings are managed by ISI's investment experts. They monitor share and bond markets daily, they analyse and obtain information. Careful asset management increases your potential of achieving excellent returns.
- You can choose from 9 different funds and compose savings tailored to your needs and preferences.
Investeringsforeningen Sydinvest International (ISI)
Dating from 1992, ISI is a Danish investment fund whose target group comprises investors who live outside Denmark and who are not liable to pay tax in Denmark. An investment fund is an alternative to investing savings directly in shares and bonds. ISI has 9 funds. It is under the management of Sydinvest Administration A/S.
Maximum issue surcharge: 3,50 %
| Information | |
|---|---|
| ISIN | DK0016259690 |
| Establishment | 04.03.2002 |
| Accumulated | Yes |
| Total assets (mio.) | 73 EUR |
| Recommended investment horizon | Min. 4 years |
| Ratios | |
| Expectations of return | |
|---|---|
| Min. return in 1 year | -12.00 % |
| Max. return in 1 year | 25.00 % |
| In 10 years (p.a.) | 7.75 % |
| Value Increase | |
| Return | |
|---|---|
| Last 5 Years (acc.) | 39.49 % |
| Return 2011 | 7.52 % |
| Return 2010 | 16.08 % |
| Return 2009 | 40.60 % |
| Return year to date | 6.61 % |
| Recent month | 1.42 % |
| Return | |
| Return most recent 5 years | |
|---|---|
| 2011 | 7.52% |
| 2010 | 16.08% |
| 2009 | 40.60% |
| 2008 | -26.10% |
| 2007 | 2.70% |
| Return | |
| Four largest country positions | |
|---|---|
| Russia | 9.21% |
| Mexico | 7.43% |
| Turkey | 6.44% |
| Venezuela | 5.14% |
| Fund Holdings | |
Disclaimer
This material has been prepared by Sydinvest Administration A/S (in the following referred to as "Sydinvest") as general and non-committal information to investors (users of the website). The contents of this material reflect the best estimates and evaluations of Sydinvest and are based on sources of information that Sydinvest considers reliable. Sydinvest does not guarantee that the contents of the material are correct, exhaustive or updated, and Sydinvest assumes no liability for transactions made by investors relying on the contents of this material. Investors are cautioned not to draw conclusions from the material regarding future returns of financial instruments and/or units in the investment funds managed by Sydinvest. The material is not and must not be construed to be an offer or invitation to purchase units in the investment funds managed by Sydinvest and can moreover not replace individual investment advice. Investors are urged to seek professional advice prior to any investment in securities.