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 |
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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 31/10/2024Market Review and Outlook
Global equity markets declined during the month of October. U.S. markets began the month strong, with sentiment boosted by a larger-than-expected rate cut from the Federal Reserve in September. However, later in the month, an increasingly ambiguous election outcome and rising interest rates caused investors to step back. A strong jobs report and robust retail sales were among the data points that reduced investor expectations on the pace of monetary policy easing. European markets underperformed the U.S. due to weakening European economic data in the manufacturing and services sectors. Chinese shares corrected after strong gains in September as investors pondered the extent of future stimulus announcements. In emerging markets, a strengthening U.S. dollar and elevated volatility in major Asian markets contributed to declines. Global bond markets declined, with both broad market and high yield indices delivering negative returns. Global convertibles outperformed many equity and fixed income markets during the month.
There was $13 billion of global convertible new issues in October, which marks the largest level of October issuance in recent history. This brings year-to-date total issuance to $98.6 billion, a 34% increase compared to the strong primary market seen through the first ten months of 2023, and will likely exceed the $80-$100 billion range of issuance expected during a healthy calendar year.
Fund
The fund slightly lagged the index return during the month. The fund benefitted from security selection within the Consumer Discretionary and Financials sectors. Technology lagged due to security selection, in particular with Microstrategy discussed below.
Regional performance was mixed on a relative basis. Asia was the largest source of relative outperformance, despite being negative on an absolute basis. The Americas were the largest source of underperformance, largely due to underweight positioning of bitcoin-proxy MicroStrategy, which significantly outperformed during the month.
During the month, we initiated new positions across the globe with the largest additions in the Healthcare and Utilities sectors. We continued to add to the fund’s exposure in China and believe improvement in some economic indicators such as purchasing manager indices (PMIs) and retail sales portend better corporate results in time. We exited certain positions, largest in the Technology sector, that had strong appreciation and limited upside for the underlying equities.
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: 10 Dec 2024
Institutional USD Capitalisation Share Class
ISIN: LU2763531360
Ticker: ALZCONI LX
Launch: 10 Dec 2024
Documents
Subscribe to the Fund Monthly Newsletteravailable upon request