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Overview

Share Class

NAV

Cumulative Performance (%)

Fund Inception 28 May 2021

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

Funds Strategy

Alma CQS Asian Macro seeks to generate absolute total returns through the application of a directional discretionary macro strategy, capitalising on investment opportunities driven by the markets and economies of the Asia-Pacific region.

The Investment Manager expresses investment themes through long and short positions in highly liquid, easy-to-price instruments such as futures, forwards and listed options in the equity, commodity, currency and rates markets.
The Investment Manager focuses on investment opportunities driven by the markets and economies of the Asia-Pacific region including Australia, New Zealand, Japan, India, China and the Association of South East
Asian Nations (ASEAN). The Investment Manager focuses on the major regional economies and markets and the Sub-Fund is unlikely to have positions in frontier markets. From time to time the Investment Manager
may take positions in non-Asian markets where the Investment Manager believes there is a significant influence from Asia-Pacific economies or markets.

The Investment Strategy is contrarian, value-orientated and research-driven, and combines longer term strategic positions with shorter term tactical positions. For strategic views, the Investment Manager uses primarily fundamental data while using its proprietary “stress indicators” based on market prices on a daily basis to help with the tactical positioning. The Investment Manager emphasises capital preservation by employing strict risk management and stop-loss disciplines.

The Investment Manager seeks to identify substantial mis-pricings and expects to have two to three investment themes at any point in time. Typically, investment themes form over weeks or months, and would
take 6-18 months or longer to play out, often in several phases or waves across different geographies and asset classes. The Investment Manager may not invest in assets or instruments associated with such investment themes continuously and may trade in and out depending on market conditions.


Investment Manager

CQS is a multi-strategy asset manager, founded by Sir Michael Hintze in 1999 with $21.6bn in AUM.

The core investment team of the CQS Asian Macro Fund consists of two dedicated investment professionals: Geoffrey Barker and Nicholas Bibby. The team leverages the insights of the other 70 investment professionals within the CQS investment/research department.

Key Persons

Geoffrey Barker
Portfolio Manager
Goeffrey Barker has managed the strategy since inception in 2006 with the same team and investment process.

Prior to joining CQS with his team in August 2019, Geoffrey managed the same Asian Macro strategy that was previously known as Counterpoint. Before this, Geoffrey was the manager of the BIA Pacific Macro Fund (2006-2013) that was twice named “Best Asian Macro Fund of the Year”. Previously, he was the Chief Economist and Head of Research for HSBC in Asia. He also ran the research department and was the Japan economist both for Baring Securities and Smith New Court in Tokyo.
Geoffrey holds an MBA from City University Business School in London and a BSc in Economics and Politics from Bath University, England.

 

Nicholas Bibby
Macro Economist
Nicholas joined CQS in 2019 and has 20 years’ industry experience.
He joined following his role as an Economist at the City Financial Investment Company. Previous to that, he held multiple positions as a director, at Ballingal Investment, Barclays Capital and was Executive Director at UBS.
He earned a Bachelor’s degree in Economics from Sussex University and a Masters in International and Financial Economics from Durham University.


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 30/11/2022

Fund

The Alma CQS UCITS gained +2.56% in November, recouping most of October’s losses and taking year-to-date performance to +13.18%. With risk assets having held important technical support levels in October, we took the view that a more significant relief rally might be possible in November. Specifically, with European fears of gas shortages beginning to ebb, we expected China to start moving away from “Covid-zero” policies and for US interest rate expectations to peak out with a possible dip in consumer prices. Our “stress indicators” had reached an extreme so even a small dose of good news might provoke a strong bounce.

Our Equity book was the largest contributor to returns in November, generating a gross profit of 154bp. We went long the Hang Seng Index and Japanese equities while retaining a put option on the S&P500 as a hedge. We were basically flat in the Japan book as returns came through the currency instead of the equity indices. This left a gain of 177bp in the Hang Seng (on hopes for a re-opening in China) slightly offset by a loss in our S&P500 hedge.

Recognizing that a peak in US interest rate expectations might trigger a pullback in the US dollar, we went long the Japanese yen and the Australian dollar. We still held small put options on the Euro and the Yen that lost premium, and we also held the CNH (offshore renminbi) short but cut back the size. Overall, the Currency book made a gross profit of 142bp, mainly thanks to a rebound in JPY. We had been fully aware that the yen had already overshot to the downside and in our opinion was extremely cheap… but it needed a catalyst to trigger a reversal. This came partly from lower-than-expected US consumer price inflation, reported on November 10th, but also from a growing perception that rising Japanese inflation would ultimately force the Bank of Japan to move away from “yield curve control”.

In a similar vein, we decided that US Treasury bonds were finally starting to offer value and we hedged out a long position in the 30y T-Bonds with a short in 10y JGB futures. The former gave us a return of 136bp while the latter was basically flat. However, we gave back some of these returns from our receiving position in Chinese 5y interest rate swaps – that we significantly reduced in size – as it became clear that the ending of the Covid-zero policy would take precedence over cutting interest rates in China. Overall, our Bond book generated a profit of 53bp.

Finally, in Commodities, we lost 43bp as gains from our long positions in precious metals (Gold and Platinum) were more than offset by losses from buying WTI oil and from prior shorts in Copper and Zinc that we cut.


Facts & Documents

Facts

Fund Domicile: Luxembourg

Fund Type: UCITS SICAV

Fund Launch: 28 May 2021

Base Currency: USD

Depositary, Administrator, Transfert Agent: RBC Investor Services Bank S.A.

Dealing: Each day with a 1-day notice

Cut-off time: 10 am CET

Management Company: Alma Capital Investment Management

Investment Manager: CQS (UK) LLP

Fund Managers: Geoffrey Barker

Countries where the fund is registered:
Luxembourg, Austria, 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:

I1C-U
ISIN: LU2275737679   Ticker: ALCAICU LX    Launch: 28 May 2021

I2C-U
ISIN: LU2275738057   Ticker: ALCAMIU LX    Launch: 28 May 2021

I2C-E
ISIN: LU2275738131   Ticker: ALCAICE LX    Launch: 28 May 2021

Documents

KIIDS Other sub-funds and other languages
available upon request