Alma Advent Global Convertible Fund

Market Review and Outlook

Global equity markets declined modestly in September. In the US, gains from select mega-cap technology companies limited the broader market decline despite losses across much of the equity universe. Renewed tensions in the Middle East pushed energy and commodities prices higher, while resilient economic data heightened inflation concerns and added to broader economic uncertainty. Against this backdrop, the Federal Reserve raised rates, while shifting market dynamics drove expectations for a more restrictive monetary policy outlook. These developments pushed US Treasury yields higher, weighing on most equity valuations and creating additional headwinds for rate-sensitive and economically vulnerable sectors. Conversely, select mega-cap technology stocks remained relatively resilient, supported by strong balance sheets, lower sensitivity to higher financing costs and continued investment in artificial intelligence (AI). European markets declined in September as rising government bond yields, higher energy prices and renewed inflation concerns weighed on investor sentiment. Emerging market equities also declined, as higher government bond yields, a stronger US dollar and rising oil prices weighed on investor sentiment. Japanese equities were mixed in September, as higher government bond yields, yen appreciation and rising oil prices weighed on rate-sensitive and export-oriented stocks, while gains in technology and semiconductor shares provided support. Global bond markets posted losses during the month.

In September, the fund outperformed the global convertible market. On a relative basis, performance was driven by the Americas and Europe, while Asia Pacific ex-Japan and Japan acted as a modest drag. By sector, the Technology and Utilities sectors outperformed the most. Technology benefited from intersectoral selection and overweighting while Utilities benefited from security selection and underweighting. The Telecommunications and Materials sectors lagged in relative performance.
Global convertible issuance totaled $27.4 billion in September, bringing year-to-date volume to $204.2 billion, already surpassing the full-year total from 2025 and putting the market on pace for a new annual record. This momentum is expected to continue, driven by upcoming refinancing needs, AI-related capex spending, elevated M&A activity, and supportive market conditions.
During the month, we participated in several new issuances, with the largest concentration in the Technology sector and Asia ex-Japan region. We exited certain positions with more limited appreciation potential, with the largest concentration of sales in Industrials and in the European region.

Fund

In August, the Fund outperformed the market return. All regions outperformed the market on a relative basis. Asia Pacific ex-Japan was the best-performing region led by intra-regional selection. By sector, Technology and Materials outperformed the most, led by intersectoral selection and overweighting, respectively. The Industrials and Media sectors lagged in relative performance.

Global convertible issuance totalled $29 billion in August, bringing year-to-date volume to $176.8 billion and putting the market on pace to set a new annual record. This wave of convertible issuance is expected to continue as refinancing needs, AI-driven capex spending, elevated M&A activity, and supportive market conditions help sustain issuance momentum.

During the month, we participated in several new issuances, with the largest concentration in the Technology sector and Asia ex-Japan region. We exited certain positions with more limited appreciation potential, with the largest concentration of sales also in Technology and Asia ex-Japan as we optimized for risk/reward in a rapidly changing investment universe.