Alma Advent Global Convertible Fund

Market Review and Outlook

Global equity markets made a strong start to 2026. In the U.S., equity market performance was influenced by a strategic pivot away from mega-cap technology leaders into cyclical sectors in pursuit of untapped value. This broadening of leadership was underpinned by a robust, multi-sector earnings season, reflecting the combined impact of late-2025 Federal Reserve rate cuts, accelerating artificial intelligence (AI)-driven efficiency gains and fiscal stimulus from the “One Big Beautiful Bill.” These forces helped drive performance in small- and mid-cap stocks, allowing them to outpace large-cap peers. Geopolitical friction in several global theaters stoked volatility but actually buoyed equity valuations in a number of sectors, such as energy, defense, metals, and industrial sub-sectors that service them. European markets also rose in January, propelled by a combination of a broadening of market leadership away from U.S. technology, a brighter economic outlook for the region, and sector-specific catalysts within technology and defense. Emerging Market equities rose during the month, driven by a weakening U.S. dollar, optimism over the prospects for Asia’s AI technology firms, and a tactical pivot by investors toward undervalued international markets. Japanese equities performed well following Prime Minister Takaichi’s pro-stimulus policies, weakening yen supporting Japanese exports and gains from AI stocks. Global bond markets modestly gained during the month.

Fund

On a net basis, the fund outperformed the index return during the month. The fund outperformed on a relative basis in all regions except Japan where we were underweight on a capital basis but had superior security selection relative to the benchmark. On a sector basis, relative performance was mixed. Industrials and Technology were the best performing. Telecommunications and Materials were modest detractors. In Technology, the fund continued to benefit from suppliers and vendors to the infrastructure build for artificial intelligence (AI) applications, be it related to electronics or power and data center construction.

In contrast to the customary January earnings-season related slowdown, the global convertible market began the year with $15.7 billion in issuance, following a record-breaking year of issuance in 2025. This activity was driven by refinancing needs and strong growth in AI infrastructure spending.

During the month, we participated in several new issuances. We participated in several issues from Asia, concentrated in issues based in China or Hong Kong across multiple sectors. The fund exited certain positions where appreciation potential was more limited, concentrated in the Technology sector.