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Overview

  • Alma Zazove Global Convertible Fund invests in convertible bonds globally.
  • Management of the fund is delegated to Zazove Associates, LLC (US), an SEC-regulated asset management firm founded in 1971, with $3.1bn1AUM from institutional and private wealth clients.

Share Class

NAV

Cumulative Performance (%)

Fund Inception 30 November 2016

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

The investment objective of the Fund is to provide global equity-like returns with significantly less risk

  • The objective is achieved by seeking to capture the majority of stock market advances while simultaneously providing downside protection during market declines
  • Statistical focus on convertible structure is used to create a balanced, diversified portfolio that optimizes the asymmetrical risk/reward characteristics of convertibles
  • The investment approach is not reliant on forecasting or market timing
  • The Fund targets a consistent risk/reward profile at all times


Investment Manager

Zazove Associates, LLC (U.S.A.) is an SEC regulated investment advisor that has specialized in the management of convertible securities since 1971

  • The firm manages US$3bn for global institutional investors
  • The firm is independent and 100%employee owned
  • Zazove has expertise across all segments of the market: US, global, and high yield (“busted”) convertibles
  • 22-year track record managing global convertibles

Key Persons

Gregory D. Shorin, JD, CFA Portfolio Manager -Global

Prior to joining Zazove in 1997, Greg was a Senior Associate with the law firm of Baker & Botts where he specialized in the analysis of pricing practices by foreign corporations. He served as Senior Counsel in advising the US Department of Commerce on international trade.

Greg earned his JD from the Georgetown University Law and his BA in Economics and Political Science from SUNY Binghamton.

 

Gene T. Pretti, Chief Executive Officer & Chief Investment Officer

Prior to acquiring Zazove Associates in 1989, Gene worked for First Boston Corporation where he specialized in institutional equity sales. He also has served as an analyst with CUNA Mutual Insurance Co. and Robert W. Baird &Co. He earned his MBA from the University of Wisconsin where he was selected for the Applied Program, an honors program emphasizing Security Analysis and Portfolio Management.


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.

Sector Breakdown as a % of AUM

as of 31/10/2018

as a % of AUM

as of 31/10/2018

Portfolio Characteristics

as of 31/10/2018
Main indicators Fund Index
No. of securities 65 227
Investment Premium (%) 20.6 14.6
Conversion Premium (%) 36.2 43.7
Delta (%) 45.0 40.0
Yield to Maturity (%) -0.2 -0.6
Current yield (%) 1.8 0.8
Convertible Duration 2.1 2.1

Top 10 Position Details

as of 31/10/2018
Security name Sector % AUM
Bunge Ltd Consumer non-cyclical 3.49
Total S.A. Energy 3.44
Workday Inc Information Technology 3.03
Liberty Interactive LLC Consumer Discretionary 3.01
Citrip Com Intl Ltd Consumer Discretionary 2.98
Liberty Media Corp Consumer Services 2.84
Weibo Corp Communication Services 2.83
Toray Industries Inc Materials 2.81
Aperam Materials 2.68
Vinci SA Industrials 2.68

Investment Manager's Commentary

as of 31/10/2018

Market Review and Outlook

Equity and credit markets sold off globally in October on mounting trade tensions, peaking GDP growth, and a more subdued outlook for corporate earnings. The largest declines occurred in small cap names and in the Technology and Energy sectors. As an asset class, convertibles proved to be resilient but there were noticeable differences by region. Europe held up well aided by the high credit quality of the market and a modest average delta. Asia was weak, weighed down by the escalating trade war between the US and China. US convertibles notably underperformed, negatively impacted by the high average delta of the market and poor underlying stock returns.

 

Fund holdings exhibited the projected degree of convexity, providing significant downside protection. Nevertheless, returns were lower than anticipated as the underlying stocks of the Fund’s convertible holdings generally underperformed the broad market equity indices. There was no particular factor that caused this divergence and the Fund remains broadly diversified by issuer, industry, and region. The relative weakness of the underlying stocks and a higher degree of exposure to the US market caused the Fund to underperform the Thomson Reuters Global Focus Index in October. Divergence in underlying stock performance is expected to occur from time-to-time as the composition of the Fund is substantially different than the Index due to the Fund’s focus on optimizing convertible risk/return structure.

 

The October selloff created investment opportunities as stock declines changed profiles across the convertible market. Trading activity concentrated on the secondary market with new issuance suppressed due to heightened volatility. Convertibles that provided downside protection and became too bond-like were exited and the Fund initiated positions in securities with attractive risk/return characteristics that returned to the balanced portion of the curve. The Fund also swapped between convertibles from the same issuer, moving into the more favorable structure.


Facts & Documents

Facts

Fund Domicile: Luxembourg

Management Fee: 0.80% p.a. for I shares

Fund Type: UCITS SICAV

Fund Launch: 30 November 2016

Base Currency: USD

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

Dealing: Each day with a 1-day notice

Cut-off time: 12pm CET

Management Company: Alma Capital Investment Management SA (LU)

Investment Manager: Zazove Associates, LLC (USA)

Fund Managers: Greg Shorin, JD, CFA

Countries where the fund is registered:
Luxembourg, France, UK

Identifiers:

Institutional USD Capitalisation Share Class
ISIN: LU1494400200   Ticker: ALZICUS LX    Launch: 30 Nov 2016

Documents

SICAV ALMA CAPITAL INVESTMENT FUNDS
  1. ACIF Prospectus
KIIDS Other sub-funds and other languages
available upon request