INVL Asset Management registers its flagship Emerging Europe bond fund in Luxembourg

INVL Asset Management, one of the leading asset management companies in Lithuania, has registered INVL Emerging Europe Bond Fund with Luxembourg’s financial market regulator CSSF at the start of July 2021. In a move to increase the operating efficiency and ensure the highest quality of services, a master-feeder structure was launched, with master fund established in the Grand Duchy of Luxembourg, while the existing Lithuania domiciled fund was transformed to a feeder fund.

INVL Emerging Europe Bond Fund was launched under Lithuanian domicile in 2010 and has EUR 29 M in assets as of 30^th June, 2021. As the name suggests, fund focuses on under-researched region which continuously offers attractive opportunities for active bond selectors. Fund invests in hard-currency sovereign and corporate debt securities using a high conviction, high active share strategy which targets average Investment grade rating and average duration of up to 3 years.

As of 30^th June, 2021, the fund has achieved 4% net of fees annual return since inception in 2010 and keeps outperforming peers by Sharpe ratio, posting benchmark level of returns with half of the volatility and minimized drawdowns. During it’s 10+ years history, fund has constantly been a top quartile performer in both total return and lowest risk categories in the peergroup.  Even though the 2021 has not been a good year in general for the bond funds, fund is up ~1.5% YTD so far, while the benchmark is up just 0.3%.

Institutional investor interest towards INVL strategies has grown significantly in recent times, as investors are looking at the region which offers positive yields and acceptable risk levels. Changes in the fund domicile will make it easier for them to gain Central and Eastern European fixed income exposure via our managed fund,” said INVL Asset Management Chief Investment Officer Vaidotas Rūkas.

Fund is registered for public distribution in Germany and Luxembourg, with registrations in other German speaking countries and also Nordic countries planned in near future.

About INVL Asset Management

INVL Asset Management, one of the leading asset management companies in Lithuania, is part of the Invalda INVL group, whose companies manage pension and mutual funds, individual portfolios, private equity and other alternative investments focused on Baltic, Emerging Europe and Global EM region. Over 240.000 clients in Lithuania and Latvia and international investors have entrusted the group’s companies with managing EUR 1.3 billion of assets.