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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 $1.8bn AUM 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$1.8bn 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
  • 24-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.

Portfolio Characteristics

Top 10 Position Details

Investment Manager's Commentary

as of 31/03/2020

Market Review and Outlook

Global markets rebounded significantly in April, supported by massive government stimulus and optimism regarding the easing of COVID-19 restrictions. US equities posted one of the strongest months on record, while Europe and Japan equities lagged on a relative basis. Energy and Consumer Discretionary were the top sectors. More defensive stocks in Utilities and Consumer Staples underperformed. Fixed income assets rose as credit spreads tightened and interest rates declined. Convertibles performed well, with higher delta and lower credit quality names leading advances. Convertible issuance surged with $16.5 Bln in new paper coming in April, led by US corporates seeking to shore up balance sheets given the potential for extended COVID-19 disruption. Most deals were priced at attractive terms to investors, particularly in the Travel/Hospitality and Retail sectors.

Fund

The Fund posted strong returns, driven by both equity advances and credit spread tightening. The US was the top contributor and returns in Europe and Japan exceeded local equity markets. All sectors advanced, with Technology and Energy the top performers. Returns were in line with those of the Benchmark, with superior returns in Europe and Japan offset by relative underperformance in US Consumer Cyclicals. Fund activity focused on exiting more bond-like positions and redeploying proceeds primarily into new issues in the US with attractive structures.

Although the market has rallied substantially from Q1 lows, significant uncertainty remains, and volatility is likely to remain elevated in the near to mid-term. Balanced convertibles are well-positioned for this environment by providing downside protection should markets fall from current levels and offering upside participation as markets recover. In addition, the primary performance drivers of convertibles are currently at attractive levels: equities remain relatively cheap, credit spreads are wide, and convertible valuations are low. When you leverage these elements with robust new issuance on investor-friendly terms, the risk/reward proposition of convertibles is particularly compelling at this time.


Facts & Documents

Facts

Fund Domicile: Luxembourg

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

Institutional EUR-Hedged Capitalisation Share Class
ISIN: LU1538866879   Ticker: ALZIECH LX    Launch: 18 Jun 2019

Documents