Alma Advent Global Convertible Fund
Overview
Alma Advent Global Convertible Fund invests in convertible bonds globally.
The fund’s management is delegated to Advent Capital Management.
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
Fund Strategy
Long only global convertibles strategy seeking attractive returns from “theoretically cheap”, positively asymmetric balanced convertible securities with attractive risk/reward profiles offering 75% – 85% of the underlying equity upside, while limiting downside risk.
Investment Manager
Advent Capital Management is a US headquartered manager with an office in London and resources dedicated to Asia, with over $8.5bn AUM, founded in 1995. Advent has one of the largest platforms in the world emphasizing convertibles as an asset class.
Key Persons
David Hulme,
Portfolio Manager
Prior to joining Advent in 2002, David worked at Van Eck Global Asset Management as an Investment Director and Portfolio Manager. David has more than 20 years involvment as a Portfolio Manager on Advent Balanced Strategies. David is a graduate of Cambridge University and is an Associate of the UK Society of Investment Professionals (ASIP). He is also a member of the Association of Chartered Accountants, which is the U.K. equivalent of a Certified Public Accountant.
Tony Huang,
Associate Portfolio Manager
Prior to joining Advent in 2007, Tony was at Essex Investment Management in Boston where he headed the Technology sector research coverage and managed Essex’s diversified Research Fund. Tony has more than 14 years involvement as an Associate Portfolio Manager on Advent’s closed end funds. Tony is a graduate of the University of Pennsylvania’s Wharton School of business. He has received the Chartered Financial Analyst (CFA) designation.
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.
Investment Manager's Commentary
as of 28/06/2024Market Review and Outlook
Global equity markets advanced during the month of June, with the MSCI ACWI (USD Hedged) returning +2.57%. In the U.S., similar to the previous month, performance was concentrated in some mega-cap behemoths such as Nvidia, Apple, and Google as the market cap weighted S&P 500 outperformed the S&P 500 Equal Weight Index by 404 basis points. Softening inflation metrics, resilient corporate earnings, and artificial intelligence (AI) growth prospects helped to bolster large cap equity markets while smaller cap equities declined. European markets declined overall with the STOXX Europe 600 index down -1.13% amidst political uncertainty in France and despite a highly anticipated 25 basis point June rate cut from the European Central Bank. Emerging markets, as U.S. rates declined, were some of the best performing equity markets with the MSCI Emerging Markets Index advancing +4.28% (USD Hedged) during the month. Global bond markets rose, as the ICE BofA Global Broad Market Index (GBMI) returned +0.86% (USD Hedged) and the ICE BofA Global High Yield Index (HW00) returned +0.91% (USD Hedged). Global convertibles, represented by the FTSE Global Focus Index (USD Hedged), returned +0.53% during the month.
There was $13.3 billion of convertible issuance in June, continuing the 2024 trend of above average issuance, and bringing year-to-date global issuance to $62.6 billion. This marks a 37% increase versus the strong primary market activity seen in the first six months of 2023, and is on pace to far exceed the $80-$100 billion of issuance expected during a healthy calendar year. New deals are coming from a blend of existing issuers and new companies and the terms on the deals are generally favorable for investors.
Fund
The fund lagged the benchmark return during the month. In Technology, the fund benefited from security selection in the software and memory subsectors. In Healthcare, the fund benefited from strong performance from certain US healthcare companies, two of which received highly anticipated drug approvals. The fund’s selection in the Consumer Discretionary and Industrials sectors offset some of this positive relative performance. In Consumer Discretionary an underweight in the electric vehicle subsector hurt relative performance as sentiment improved following Volkswagen’s announcement of an investment in and joint venture with Rivian Automotive. In the Industrials sector, US clean energy-related companies came under pressure following increases in the chances of a Donald Trump Presidential victory. The fund had strong selection and excess contribution in Asia but lagged in other regions this month. In EMEA, an overweight to France, hurt relative performance, as the market sold off on news of a snap election.
During the month, we initiated new positions in several attractively priced new issues across the globe in the Consumer Discretionary and Technology sectors. We exited certain positions in the Industrials and Healthcare sectors, where we felt equity upside was limited, and sold some existing holdings where changes in the equity led the convertible to have muted total return potential.
Facts & Documents
Facts
Fund Domicile: Luxembourg
Fund Type: UCITS SICAV
Fund Launch: 30 November 2016
Base Currency: USD
Depositary, Administrator, Transfert Agent: BNP Paribas SA
Dealing: Each day with a 1-day notice
Cut-off time: 12pm CET
Management Company: Alma Capital Investment Management SA (LU)
Investment Manager: Advent Capital Management, LLC (US)
Fund Managers: David Hulme and Tony Huang
Countries where the fund is registered:
Luxembourg, France, UK
Sustainability-related disclosures:
The information related to the integration of sustainability risks and to the potential adverse sustainability impacts at the sub-fund level can be found in the prospectus of the Fund.
Identifiers:
Institutional EUR Capitalisation Share Class
ISIN: LU2763531444
Ticker: ALMCNVI LX
Launch: 27 Jul 2024
Institutional USD Capitalisation Share Class
ISIN: LU2763531360
Ticker: ALZCONI LX
Launch: 27 Jul 2024
Documents
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