ESPA BOND LOCAL EMERGING. Mutual fund pursuant to the InvFG

Transcription

1 ESPA BOND LOCAL EMERGING Mutual fund pursuant to the InvFG Semi-Annual Report 2013

2 Semi-Annual Report 2013 Contents General Information about the Investment Firm... 2 Development of the Fund... 3 Asset Allocation... 4 Fund Portfolio as of 31 December The Austrian Investment Fund Act (Investmentfondsgesetz [InvFG]) 2011 has been in effect since 1 September Some of the provisions and legal references in the semi-annual report still refer to the InvFG 1993.

3 ESPA BOND LOCAL EMERGING General Information about the Investment Firm The company ERSTE-SPARINVEST Kapitalanlagegesellschaft m. b. H. Habsburgergasse 1a, A-1010 Vienna Telephone: , Fax: Nominal capital EUR 4.50 million Shareholders Erste Asset Management GmbH (81.42%) DekaBank Deutsche Girozentrale (2.87%) Kärntner Sparkasse Aktiengesellschaft (2.87%) NÖ-Sparkassen Beteiligungsgesellschaft m. b. H. (1.37%) Salzburger Sparkasse Bank Aktiengesellschaft (2.87%) Sieben Tiroler Sparkassen Beteiligungsgesellschaft m. b. H. (2.87%) Steiermärkische Bank und Sparkassen Aktiengesellschaft (5.73%) Supervisory Board Managing directors Prokuristen (proxies) State commissioners Auditor Custodian bank Wolfgang TRAINDL, Mag. (Chairman) Gerhard FABISCH, Mag. Dr. (Deputy Chairman) Wilhelm SCHULTZE, DI (Deputy Chairman) Christian AICHINGER, Dr. Birte QUITT, Dipl. BW. (FH) Rupert RIEDER, Mag. Gabriele SEMMELROCK-WERZER Reinhard WALTL, Mag. Appointed by the Works Council: Regina HABERHAUER, Mag. (FH) Dieter KERSCHBAUM, Mag. Gerhard RAMBERGER, Mag. Herbert STEINDORFER Heinz BEDNAR, Mag. Franz GSCHIEGL, Dr. Günther MANDL Achim ARNHOF, Mag. Winfried BUCHBAUER, Mag. Harald EGGER, Mag. Oskar ENTMAYR Dietmar JAROSCH, Dr. Christian SCHÖN Paul A. SEVERIN, Mag. Jürgen SINGER, Mag. Erwin GRUBER Michael MANHARD, HR Dr. ERNST & YOUNG WIRTSCHAFTSPRÜFUNGSGESELLSCHAFT MBH Erste Group Bank AG 2

4 Semi-Annual Report 2013 Dear Shareholder, We are pleased to present you the following semi-annual report for the ESPA BOND LOCAL EMERGING mutual fund pursuant to the Austrian Investment Fund Act for the period from 1 July 2013 to 31 December Development of the Fund The fund achieved a performance of minus 8.30% in the reporting period from 1 July 2013 to 31 December The benchmark yield rose from 6.44% at the beginning of the reporting period to 6.81% at the end of the year. A key focus during the half year was the Fed s future monetary policy. After evidence that the Fed would be stopping the flow of liquidity earlier rather than later had mounted, definitive proof came in December. The tapering was initiated at the last meeting with Ben Bernanke as chairman. Most analysts currently expect Janet Yellen to stick to this new course. Nevertheless, the monetary policies remain expansive in the USA, Great Britain, Japan and the Eurozone. The economic policy risk in the USA also abated at the last minute with the prevention of a (temporary and partial) government bankruptcy. However, the raising of the debt ceiling and the government emergency in the USA will likely remain as worries for the capital markets in Over the long term, this will damage the position of the USD as the dominant currency for foreign reserves. After GDP growth weakened considerably in the emerging markets until the middle of the year for external and internal reasons, global growth picked up again at the end of the year. The emerging markets saw a positive trend starting in September. Accelerating economic growth, low inflationary pressure and a friendly external environment supported bonds and currencies. Global industrial production and export growth in Asia are improving slightly. The slight acceleration of economic growth in the third quarter and the rising purchasing managers indices have also reduced the risk of a hard landing in China. The economic indicators are pointing to a (slow, weak and fragile) recovery of the world economy, though it is important to note that the positive impulses are coming from the developed markets, and the emerging markets are continuing to grow at a below average rate. The consequences for the emerging markets fixed income markets were bitter: The yields on US Treasuries rose, and carry trades were liquidated. This impacted the countries with the greatest inflows and/or the greatest disparities the hardest (India, Indonesia, Turkey, South Africa and Brazil). Under these conditions, especially countries with current account deficits came under pressure. Falling capital inflows caused a weaker currency and/or higher interest rates, which in turn caused lower imports and weaker domestic demand. The substantial increase of private debt levels in some countries exacerbate this tendency. The fact that the levels of debt in foreign currencies (US dollars) have fallen considerably and that foreign currency reserves have risen substantially in the emerging countries in recent years is positive. The current account deficits are also not anywhere close to truly dangerous levels, which to us means that a major crisis is unlikely. Over the short term, the upturn in the developed market economies will help because it will cause a gradual improvement in export growth. Over the long term, however, only structural reforms that increase productivity can help. This is the only way to ensure that a sustainable middle class is formed. 3

5 ESPA BOND LOCAL EMERGING Overall, the emerging markets have higher levels of inflation, productivity growth, interest rates and earnings growth (with margins moving towards levels seen in the developed markets) than the industrialised countries, along with increasing creditworthiness and declining political risk. ESPA BOND LOCAL EMERGING invests primarily in local-currency government bonds from the emerging countries. The focus is on countries in Central and Eastern Europe (roughly 37% at present), Asia (26%), Latin America (25%), and the Middle East and Africa (12%). The fund may also invest to a limited extent in corporate bonds from issuers in the eligible countries. Most of these bonds are rated from A to B. The currency risk is not hedged. Forward exchange agreements are also used to manage the exchange rate risk. Asset Allocation 31 December June 2013 EUR millions % EUR millions % Bonds denominated in BRL CLP IDR COP MYR MXN NGN PEN PHP PLN ROL RUB ZAR THB TRY USD HUF Securities Forward exchange agreements Cash in banks/bank liabilities Interest entitlements Other deferred items Fund assets

6 Semi-Annual Report 2013 Fund Portfolio as of 31 December 2013 (including changes in securities assets from 1 July 2013 to 31 December 2013) Security designation ISIN Interest rate Purch./ Sales/ Holding Price Value % share number additions disposals in EUR of fund assets Publicly traded securities Bonds denominated in BRL Issue country Brazil BRAZIL 2015 F BRSTNCNTF0O3 1) ,300 1,250 1, , BRAZIL 2017 F BRSTNCNTF0G9 1) , ,683, BRAZIL 2018 F BRSTNCNTF139 1) , ,136, BRAZIL 2020 BRSTNCNTB3A ,200 2, , BRAZIL 2021 F BRSTNCNTF0N , , Total 4,552, Total bonds denominated in BRL translated at a rate of ,552, Bonds denominated in IDR Issue country Indonesia INDONESIA 2019 FR36 IDG ,000, , INDONESIA 2023 FR46 IDG ,000, , INDONESIA 2024 FR44 IDG ,000,000 10,000, , INDONESIA 2026 FR56 IDG ,500, , INDONESIA 2030 FR52 IDG ,000, , INDONESIA 2032 FR58 IDG ,000, , INDONESIA 2037 FR45 IDG ,000, , INDONESIA 2042 FR62 IDG ,999, , Total 3,296, Total bonds denominated in IDR translated at a rate of ,296, Bonds denominated in COP Issue country Colombia COLOMBIA 09/14 B COL17CT , , Total 76, Total bonds denominated in COP translated at a rate of , Bonds denominated in MXN Issue country Mexico MEXICO 2015 MX0MGO , ,000 24, , MEXICO 2016 MX0MGO0000C ,000 13, , MEXICO 2020 MX0MGO0000L , ,

7 ESPA BOND LOCAL EMERGING Security designation ISIN Interest rate Purch./ Sales/ Holding Price Value % share number additions disposals in EUR of fund assets MEXICO 2021 MX0MGO0000N , , MEXICO 2022 MX0MGO0000Q , , MEXICO 2024 MX0MGO , , ,064, MEXICO 2031 MX0MGO0000P , , Total 4,444, Total bonds denominated in MXN translated at a rate of ,444, Bonds denominated in PEN Issue country Peru PERU 05/20 PEP01000CY , , PERU 08/31 PEP01000C4G , , Total 670, Total bonds denominated in PEN translated at a rate of , Bonds denominated in ROL Issue country Romania ROMANIA RO1216DBN , , Total 466, Total bonds denominated in ROL translated at a rate of , Bonds denominated in RUB Issuer Asian Development Bank EURAS.12/17 XS , , Total 659, Issue country Ireland GPB EURO 13/16 XS , ,088, Total 1,088, Issue country Luxembourg RSHB CAPITAL 11/16 XS , , Total 662, Issue country Russia RUSSIAN FED RU000A0JSMA , , Total 776, Total bonds denominated in RUB translated at a rate of ,187,

8 Semi-Annual Report 2013 Security designation ISIN Interest rate Purch./ Sales/ Holding Price Value % share number additions disposals in EUR of fund assets Bonds denominated in THB Issue country Thailand THAILD 2017 TH062303RA , , THAILD 2023 TH , , THAILD 04/14 TH062303OC , , THAILD 06/21 TH , , THAILD 07/18 TH0623A3S , , THAILD 09/19 TH062303T ,000 10, , THAILD 2017 TH062303R ,000 20, , THAILD 2019 TH062303T ,000 20, , THAILD 2027 TH C ,000 15, , THAILD 2031 TH0623A3B , , THAILD 99/14 TH062303O , , Total 4,018, Total bonds denominated in THB translated at a rate of ,018, Bonds denominated in TRL Issue country Turkey TURKEY 09/14 TRT060814T , , TURKEY FLR TRT010420T , ,105, TURKEY TRT070115T , , TURKEY TRT080323T ,500 2, , Total 3,685, Total bonds denominated in TRL translated at a rate of ,685, Bonds denominated in HUF Issue country Hungary HUNGARY /A HU , , HUNGARY /A HU , , HUNGARY /B HU , , HUNGARY HU , , , HUNGARY HU lent* , , Total 1,925, Total bonds denominated in HUF translated at a rate of ,925, Dual currency bond denominated in CLP Issuer African Development Bank AFR. DEV. BK 13/14 XS , , Total 414, Total dual currency bonds denominated in CLP translated at a rate of ,

9 ESPA BOND LOCAL EMERGING Security designation ISIN Interest rate Purch./ Sales/ Holding Price Value % share number additions disposals in EUR of fund assets Dual currency bonds denominated in COP Issue country Colombia COLOMBIA 05/15 XS ,200, , , COLOMBIA 07/27 XS ,200, , COLOMBIA 10/21 XS ,800, , Total 1,445, Issuer World Bank WORLD BK 10/20 XS ,600, , Total 681, Total dual currency bonds denominated in COP translated at a rate of ,126, Dual currency bonds denominated in NGN Issuer World Bank WORLD BK 13/14 XS , , Total 449, Total dual currency bonds denominated in NGN translated at a rate of , Dual currency bonds denominated in PHP Issue country Philippines PHILIPPINES 10/21 US718286BJ ,000 5, , PHILIPPINES 11/36 US718286BM ,000 10, , Total 261, Total dual currency bonds denominated in PHP translated at a rate of , Total publicly traded securities 29,574, Securities admitted to organised markets Bonds denominated in PLN Issue country Poland POLAND 02/ PL lent* , , POLAND 06/17 PL lent* ,500 2, , POLAND PL , , POLAND PL ,500 1, , POLAND PL , , POLAND PL , , POLAND PL , , POLAND PL ,000 4, ,053, Total 5,035, Total bonds denominated in PLN translated at a rate of ,035,

10 Semi-Annual Report 2013 Security designation ISIN Interest rate Purch./ Sales/ Holding Price Value % share number additions disposals in EUR of fund assets Bonds denominated in RUB Issue country Russia RUSSIAN FED RU000A0JRJU , , RUSSIAN FED RU000A0JS4M , ,328, Total 2,117, Total bonds denominated in RUB translated at a rate of ,117, Bonds denominated in ZAR Issue country South Africa SOUTH AFR ZAG ,500 9, , SOUTH AFR ZAG , , SOUTH AFR ZAG ,000 8, , SOUTH AFR ZAG ,000 4, , SOUTH AFR ZAG , , SOUTH AFR ZAG ,000 18, ,044, SOUTH AFR ZAG , , Total 4,209, Total bonds denominated in ZAR translated at a rate of ,209, Bonds denominated in USD Issue country Nigeria NIGERIA 11/21 XS ,300 1, , Total 865, Total bonds denominated in USD translated at a rate of , Dual currency bonds denominated in IDR Issuer European Bank for Reconstruction and Development EUR.BK REC. 11/16 XS ,000, , Total 231, Total dual currency bonds denominated in IDR translated at a rate of , Total securities admitted to organised markets 12,458, Unlisted securities Bonds denominated in MYR Issue country Malaysia MALAYSIA MYBMJ ,000 1, , MALAYSIA /06 MYBMO ,000 3, , MALAYSIA 2017 MYBMN , , MALAYSIA 2018 MYBMS03002H ,500 1, , MALAYSIA MYBMO ,000 3, ,

11 ESPA BOND LOCAL EMERGING Security designation ISIN Interest rate Purch./ Sales/ Holding Price Value % share number additions disposals in EUR of fund assets MALAYSIA 2020 MYBML ,000 2, , MALAYSIA MYBMO ,800 2, , MALAYSIA MYBMS ,000 3, , MALAYSIA MYBMX , , Total 4,796, Total bonds denominated in MYR translated at a rate of ,796, Total unlisted securities 4,796, Forward exchange agreements Unrealised result in EUR Forward exchange agreements denominated in EUR Issue country Austria FXF EUR/CNY 2014 FXF_NTX_ ,960-13, FXF EUR/CZK 2014 FXF_NTX_ ,262,831-15, FXF EUR/IDR 2014 FXF_NTX_ ,114-19, FXF EUR/NGN 2014 FXF_NTX_ ,852-12, FXF EUR/TRY 2014 FXF_NTX_ ,062,060-50, FXF EUR/USD 2014 FXF_NTX_ ,097,506-8, Total -121, Total forward exchange agreements denominated in EUR -121, Total forward exchange agreements -121, Breakdown of fund assets Securities 46,828, Forward exchange agreements -121, Cash in banks 989, Interest entitlements 1,153, Other deferred items -1, Fund assets 48,849, Dividend shares outstanding shares 85,098 Non-dividend shares outstanding shares 309,962 KEST-exempt non-dividend shares outstanding shares 19,298 Share value for dividend share Euro Share value for non-dividend share Euro Share value for KEST-exempt non-dividend share Euro

12 Semi-Annual Report ) Price contains deferred interest. * As of 31 December 2013, the securities marked with lent in the fund portfolio and the following securities were registered as lent in the following amounts and at the following fees in the securities lending system of Erste Group Bank AG: Security designation ISIN Lent Fee number amount rate in % HUNGARY HU , POLAND 02/ PL , POLAND 06/17 PL , Investor note: The values of assets in illiquid markets may deviate from their actual selling prices. Purchases and sales of securities in the reporting period not listed in the fund portfolio Security designation ISIN Interest rate Purch./ Sales/ number additions disposals Publicly traded securities Bonds denominated in BRL Issue country Brazil BRAZIL 2014 F BRSTNCNTF ,700 Bonds denominated in CLP Issue country Chile CHILE 10/20 US168863AU ,000 Bonds denominated in IDR Issue country Indonesia INDONESIA 2018 FR66 IDG ,000,000 INDONESIA 2027 FR42 IDG ,000,000 11

13 ESPA BOND LOCAL EMERGING Security designation ISIN Interest rate Purch./ Sales/ number additions disposals Bonds denominated in MXN Issue country Mexico MEXICO 2013 MX0MGO ,000 MEXICO 2014 MX0MGO0000K ,000 MEXICO 2018 MX0MGO0000G ,000 Bonds denominated in RUB Issue country Russia RUSSIAN FED RU000A0JQZ ,000 Bonds denominated in THB Issue country Thailand THAILD 04/19 TH062303T ,000 Bonds denominated in TRL Issue country Turkey TURKEY 08/13 TRT280813T ,100 TURKEY FLR TRT040117T ,500 TURKEY 10/13 TRT091013T Bonds denominated in HUF Issue country Hungary HUNGARY /C HU ,000 HUNGARY /E HU ,000 Securities admitted to organised markets Bonds denominated in PLN Issue country Poland POLAND PL ,500 Bonds denominated in RUB Issue country Germany KRED.F.WIED.12/16 MTN RL XS ,000 12

14 Semi-Annual Report 2013 Security designation ISIN Interest rate Purch./ Sales/ number additions disposals Issuer European Investment Bank EIB EUR.INV.BK 07/17 MTN XS ,500 EIB EUR.INV.BK 10/16 MTN XS ,000 Issuer European Bank for Reconstruction and Development EUR. BK REC.DEV.10/17 MTN XS ,000 Issue country Netherlands RABOBK NEDERLD 07/17 MTN XS ,000 Bonds denominated in ZAR Issue country South Africa SOUTH AFR ZAG ,500 SOUTH AFR ZAG ,000 Bonds denominated in USD Issue country Brazil BRAZIL 06/37 US105756BK ,400 Dual currency bond denominated in BRL Issuer World Bank WORLD BK 12/13 MTN XS ,000 Unlisted securities Bonds denominated in MYR Issue country Malaysia MALAYSIA MYBMK ,000 Vienna, January 2014 ERSTE-SPARINVEST Kapitalanlagegesellschaft m.b.h. Electronically signed Inspection information: Note: The electronic signatures in this document can be inspected at This document was signed with two qualified electronic signatures. A qualified electronic signature fulfils the legal requirements of a hand-written signature, and in particular the requirements of the written form as defined in 886 ABGB ( 4 [1] Austrian Signature Act [Signaturgesetz]). 13