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Overview

Fund description

Alma Hotchkis & Wiley Global Value Equity Fund seeks current income and long-term capital appreciation by investing in a portfolio of global companies.

Investment manager: Hotchkis & Wiley Capital Management, LLC

Hotchkis & Wiley is an SEC-regulated, Los Angeles-based investment adviser founded in 1980, specialised in value equity and high yield bond strategies.

 

Share Class

NAV

Cumulative Performance (%)

Fund Inception 28 February 2019

Daily Monthly Ytd 1Yr 3Yr 5Yr Incept. Incept.Date

The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.


Strategy & Manager

Funds Strategy

Investment objective: seek current income and long-term capital appreciation by investing in a portfolio of global companies

  • Investment process: analyse long term company fundamentals through in-house bottom-up research aiming to identify undervalued stocks
  • The fund typically holds 40 to 80 securities and generally invests in companies with a market capitalization above $1 billion
  • The fund invests primarily in companies located in developed countries, with at least 40% outside the U.S. Emerging markets: up to 20%


Investment Manager

Hotchkis & Wiley is a SEC-regulated, Los Angeles-based investment adviser founded in 1980, specialised in value equity and high yield bond strategies

  • Employee owned firm: 90% of the investment team and 67% of all employees own equity
  • Investment team has over 23 years average investment experience and 15 years average tenure at Hotchkis & Wiley
  • Hotchkis & Wiley manages $24 billion

Key Persons

Scott McBride, CFA Portfolio Manager and President

Mr. McBride became President of Hotchkis & Wiley in 2016. In his role as portfolio manager, Mr. McBride plays an integral part in the investment research review and decision-making process. He coordinates the day-to-day management of Large Cap Fundamental Value, Large Cap Diversified Value, Global Value and International Value portfolios, as well as represents these strategies to current and prospective clients. He also provides expertise and insight into the consumer, financials, healthcare and technology sectors. Prior to joining the firm, Mr. McBride was an associate consultant with Deloitte Consulting and worked as an investment marketing analyst with Fidelity Investments.

 

Patrick Meegan, CPA Portfolio Manager

In his role as portfolio manager, Patrick Meegan plays an integral role in the investment research review and decision-making process. He coordinates the day-to-day management of all High Yield bond and Capital Income portfolios. He also provides expertise and insight into the financials and healthcare sectors. Mr. Meegan began his career at H&W as an investment analyst and became portfolio manager in 2001. Prior to joining the firm, Mr. Meegan was an audit manager at Arthur Andersen and specialized in financial statement audits and advising clients on SEC reporting issues.

Mr. Meegan, a Certified Public Accountant, received his BA in Business Administration with honors from California State University, Fullerton and his MBA with honors from the Anderson School of Management at the University of California, Los Angeles.

 

Judd Peters, CFA Portfolio Manager

In his role as portfolio manager, Mr. Peters plays an integral part in the investment research review and decision-making process. He coordinates the day-to-day management of Large Cap Fundamental Value, Large Cap Diversified Value, Small Cap Diversified Value and Global Value portfolios, as well as represents these strategies to current and prospective clients. He also provides expertise and insight into the capital goods, energy and technology sectors. Prior to joining the firm, Mr. Peters was an analyst in the corporate finance department of an investment banking firm.

 

Scott Rosenthal, Portfolio Manager

 

In his role as portfolio manager, Mr. Rosenthal plays an integral part in the investment research review and decision-making process. He coordinates the day-to-day management of Global Value and International Value portfolios and represents these strategies to current and prospective clients. He also provides expertise and insight into the capital goods, energy and financials sectors. Prior to joining the firm, Mr. Rosenthal was a member of the investment team at FLAG Capital Management where he worked to identify and evaluate fund-of-funds investment opportunities in venture capital and private equity. He began his career as an analyst with UBS’ Health Care investment banking group. Mr. Rosenthal received his BA in Economics from Boston College and MBA with honors from Columbia Business School.

 

 

 


Statistics & Commentary

Performance

The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.

Portfolio Characteristics

Top 10 Position Details

Investment Manager's Commentary

as of 31/03/2020

Market Review and Outlook

The MSCI World Index returned +10.9% in April amid early signs of slowing viral infection rates and preliminary plans to reopen select areas of the economy. This was its best monthly return since April 2009 (+11.2%), albeit on the heels of its worst quarter in more than a decade (-21.1%). Year-to-date, the index is down -12.4%. The MSCI World Growth Index outperformed the MSCI World Value Index in the month (+12.8% vs. +8.8%). The performance divergence between the indices year-to-date is stunning: the value index is down -20.6% while the growth index is down just -4.4%. This has been driven by the widening of valuation spreads as investors have shunned economically-sensitive stocks, seemingly without regard for their underlying ability to withstand a prolonged economic slowdown. These stocks are disproportionately represented in value indices and value portfolios. This year has not been a conducive environment for our approach which focuses on business fundamentals and valuation. Despite recent challenges, we are not just optimistic but excited about the portfolio’s prospects going forward. The portfolio’s composition consists of quality businesses, with good balance sheets (almost entirely investment grade rated), that employ prudent corporate governance, and of course, trade at attractive valuations relative to the risks at hand.

Fund

The portfolio underperformed the MSCI World Index in April. The portfolio’s value bias was a major headwind compared to the core index as value stocks lagged growth stocks.  The overweight and stock selection in industrials and financials hurt relative performance in the month, along with stock selection in technology. Positive stock selection in healthcare and the underweight exposure in utilities helped relative performance. The largest individual detractors in the month were General Electric, Wells Fargo, Total, BAE Systems, and Embraer; the largest positive contributors were Royal Mail, Magna International, National Oilwell Varco, Anthem, and Kosmos Energy.


Facts & Documents

Facts

Fund Domicile: Luxembourg

Fund Type: UCITS SICAV

Fund Launch: 28 February 2019

Base Currency: USD

Depositary, Administrator, Transfert Agent: BNP Paribas Securities Services (LU)

Dealing: Each day with a 1-day notice

Cut-off time: 5 pm CET

Management Company: Alma Capital Investment Management

Investment Manager: Hotchkis & Wiley Capital Management, LLC (US)

Identifiers:

Institutional USD Capitalisation share class
ISIN: LU1907586306   Ticker: ALHWGIU LX    Launch: 28 Feb 2019

Documents

PROSPECTUS
  1. Alma Prospectus
KIIDS Other sub-funds and other languages
available upon request