Alma Advent Global Convertible Fund

Market Review and Outlook

Global equity markets extended their market rally for a sixth consecutive month, with the MSCI ACWI equity index increasing +0.09% (USD Hedged) in November. Markets spent most of the month in the red, driven by hawkish comments from the U.S. Federal Reserve’s (“Fed”) meeting in October and a growing concern over financing for artificial intelligence (“AI”) infrastructure buildout. However, markets began to recover in late November after the release of delayed U.S. economic data, and Fed committee members’ public comments both signaled a greater chance of a 25-basis point rate cut at the December meeting. European markets also rose in November, benefiting from the European Commission upgrading its growth forecast for the eurozone economy, with growth supported by a resilient labor market, decreasing inflation, and favorable financing conditions as the STOXX Europe 600 Index reached another record high, closing the month with a +0.97% return. Emerging Market equities underperformed developed markets during the month, with the MSCI Emerging Markets Index falling -1.53% (USD Hedged), driven by a pullback in AI-related stocks and underperformance in the China market due to slower economic prospects. Japanese equities declined after geopolitical tensions involving China and a rising chance of a Bank of Japan interest rate hike in December. Global bond markets captured modest gains during the month, with the ICE BofA Global Broad Market Index returning +0.28% (USD Hedged) and the ICE BofA Global High Yield Index returning +0.33% (USD Hedged). Global convertibles, represented by the FTSE Global Focus Convertible Index, returned -1.90% during the month (USD Hedged), hurt by the correction in AI valuations.

Fund

On a net basis, the fund outperformed the index return during the month. The fund benefited from relative outperformance led by the Healthcare sector where the portfolio’s strong security selection drove positive attribution. In addition, the portfolio’s selection in Utilities was also positive as some holdings benefited from a rebound in valuation of renewable energy issuers. The Financials sector detracted most from relative performance as our holdings in the digital asset ecosystem fell with the decline in bitcoin versus the dollar in the month. Regional performance was mostly positive on a relative basis, largely due to selection within regions.

There was $28 billion of global convertible issuance in November, bringing year-to-date convertible issuance to $166 billion, representing a 43% increase from the strong pace of issuance in 2024.

During the month, we participated in several new issuances. We sourced opportunities in multiple sectors, with most coming from the Technology sector. The fund exited certain positions where appreciation potential had become more muted and were less attractive than new issuances. In recent months, sector allocations have shifted toward Technology and away from Financials, in line with opportunities in the new issue market and growth niches.