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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 31/05/2024

Market Review and Outlook

Global equity markets advanced during the month of May, with the MSCI ACWI (USD Hedged) returning +3.76% and continuing to push record highs. In the U.S., performance was influenced significantly by a few mega-cap behemoths such as Nvidia and Apple, as the market cap weighted S&P 500 outperformed the S&P 500 Equal Weight Index by 2.14%. Increasing consumer confidence, resilient corporate earnings, and inflation readings coming in lower-than-expected helped to bolster U.S. markets. However, expectations for both the magnitude and likelihood of U.S. Federal Reserve rate cuts continue to push out, with just a single rate cut priced in for much later in 2024. European markets advanced with the STOXX Europe 600 index up +3.54% helped by a combination of improving economic growth, lower inflation, and anticipation of a rate cut from the European Central Bank (which was subsequently delivered in June). Emerging markets, supported by an improving economic outlook in China, advanced with the MSCI Emerging Markets Index returning +2.23% (USD Hedged) during the month. Global bond markets rose, as the ICE BofA Global Broad Market Index (GBMI) returned +0.93% (USD Hedged) and the ICE BofA Global High Yield Index (HW00) returned +1.26% (USD Hedged). Global convertibles, represented by the Refinitiv Global Focus Index (USD Hedged, “RGF”), returned +1.37% in May.

The fund exceeded the benchmark return during the month due to positive security selection in several sectors. In Industrials, the fund experienced strong gains from companies associated with renewable energy. In Energy, the fund benefited from strong performance from some European energy services providers. The fund’s underweight to Utilities offset some of this positive relative performance as lower interest rates led the group to advance. The fund had strong selection and excess contribution within all regions except Japan.

There was $18.3 billion of convertible issuance in May, bringing year-to-date global issuance to $49.3 billion, which is a 26% increase versus issuance in the first 5 months of 2023. New issues continue to be attractively priced with higher coupons than in recent years, and issuers are citing a broad range of purposes for raising the capital.

Fund

During the month, we initiated new positions in several attractively priced new issues across the globe in the Consumer Discretionary, Technology, and Industrial sectors. It was notable to see some large issuances from Chinese e-commerce leaders returning to the convertible market to fund share buyback programs. We exited certain positions in the Energy 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. From a regional perspective, the most meaningful change in allocation is a higher weighting in China, due to the new issuances, partially sourced from a lower weighting in Japan.


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: 23 Jun 2024

Institutional USD Capitalisation Share Class
ISIN: LU2763531360   Ticker: ALZCONI LX    Launch: 23 Jun 2024

Documents

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