Alma Gramercy Emerging Markets Debt
Overview
Alma Gramercy Emerging Markets Debt is a long-only emerging markets debt fund.
The fund’s management is delegated to Gramercy Funds Management.
Share Class
NAV
Cumulative Performance (%)
Fund Inception 3 November 2022
| 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
The Strategy seeks to outperform emerging market debt (EMD) markets by applying Gramercy’s symbiotic top-down / bottom-up approach to build a blended portfolio of hard currency sovereign debt, local currency sovereign debt and hard currency corporate debt.
The EM Debt investment team led by Portfolio Managers Philip Meier and Belinda Hill, each with over 15 years’ experience managing EM debt funds and a team of experienced dedicated analysts. The two Portfolio Managers also benefit from the support of a dedicated top-down view group led by Mohamed A. El-Erian, which builds investment themes and directional market views.
Investment Manager
Gramercy Funds Management is a $5.9 billion asset management firm dedicated to emerging markets, founded in 1998 by CIO Robert Koenigsberger and chaired by Mohamed A. El-Erian. The firm is headquartered in Greenwich, CT with offices in London, Buenos Aires and Mexico City.
Key Persons
Philip Meier
Managing Director, Head of Emerging Markets Debt, Multi-Asset Portfolio Manager
Mr. Meier brings more than 17 years of investment experience to Gramercy. He is Head of EM Debt and Portfolio Manager of Gramercy’s Multi-Asset Strategies. Prior to joining Gramercy, Mr. Meier spent nearly five years at Legal & General Investment Management (LGIM) where he was a senior member of the Emerging Markets Debt Portfolio Management Team. In addition to LGIM, Mr. Meier’s emerging markets credit experience includes time with AXA Investment Managers as Senior Portfolio Manager, Emerging Markets Fixed Income, in London. He began his emerging markets credit investing career with Deutsche Asset Management in Frankfurt. Mr. Meier graduated from the European Business School in Germany and holds an MBA-equivalent (“Diplom-Kaufmann”) in Finance & Banking.
Belinda Hill
Managing Director, Emerging Markets Debt Portfolio Manager
Ms. Hill has 22 years of investment and research experience in emerging markets. She is a Co-Portfolio Manager for Gramercy’s long-only EMD strategies and a Senior Research Analyst for the firm’s alternative portfolios. Prior to joining Gramercy, Ms. Hill spent three years as an Emerging Markets Analyst at Apollo Global Management. At Apollo, she analyzed sovereign, quasi-sovereign, and corporate issuers across all sectors and was also responsible for sourcing and evaluating new strategic initiatives and private opportunities. Prior to Apollo, Ms. Hill worked at Schroders Investment Management for two years as an Emerging Markets Corporate Credit Analyst. Ms. Hill also worked at HPP, PepsiCo and Credit Suisse. Ms. Hill received her BA in Business Administration from Georgetown University where she graduated Cum Laude. Additionally, Ms. Hill is a CFA Charterholder.
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 30/08/2024Market Review and Outlook
In August, risk sentiment for bonds continued to be strong, despite a bout of exceptional volatility early in the month as a surging JPY led to a stark reduction of popular FX carry trades by investors. This sparked a debate over whether an emergency Fed rate cut would be needed to stabilize markets. That debate was very short-lived as the Bank of Japan eventually blinked and commented that they would not hike interest rates in “unstable” markets. Within a day all was calm again and markets reverted to watching U.S. economic data and Fed speak for signs of the path forward on monetary policy. On that front, all signs pointed to a rate cut in September by the Fed. The July nonfarm payrolls report showed early signs of a cooling labor market with an increase of 114,000 jobs the prior month, far less than the expected 185,000 that economists had expected. Meanwhile, the unemployment rate rose to 4.3%, the highest since October 2021. A soft CPI report mid-month also showed that inflationary pressures continued to dissipate, adding confidence that a September cut was likely. Luckily Chair Powell all but explicitly guided to easing policy rates in September but stated that “the time has come for policy to adjust” and “the direction of travel is clear.” The 10-year U.S. Treasury rallied 13bps during the month of August to reach 3.9%. In this context the Fund (I USD ACC) returned 2.09% compared to the JPM Equal Weight Index return of 2.36%.
In terms of return streams, all EM fixed income sub asset classes had strong results during the month of August. EM local currency sovereigns, as represented by the GBI-EM Global Diversified Index, outperformed, with a total return of 3.1% during the month. EM hard currency sovereigns, as represented by the EMBI Global Diversified index, and EM hard currency corporates, as represented by the CEMBI Broad Diversified Index, returned 2.3% and 1.7%, respectively in August. The investment grade and high yield components of both hard currency sovereigns and corporates performed in line with each other as the positive market sentiment lifted all boats.
Fund
During the month of August, performance was impacted by our under allocation to EM local currency sovereigns, particularly to lower beta names, such as Indonesia, China and Malaysia, where valuations are very tight but currencies benefited nonetheless from increasing expectations of monetary policy easing in the U.S. This factor was partially offset by the Fund’s positioning in hard currency corporates, particularly financials in Turkey, longer duration bonds in Saudia Arabia and the U.A.E and high yield credits in Brazil, which benefited from positive risk sentiment during the month and the rally in U.S. Treasuries.
Facts & Documents
Facts
Fund Domicile: Luxembourg
Fund Type: UCITS SICAV
Fund Launch: 3 November 2022
Base Currency: USD
Depositary, Administrator, Transfert Agent: BNP Paribas SA
Dealing: Each day with a 1-day notice
Cut-off time: 12 pm CET
Management Company: Alma Capital Investment Management
Investment Manager: Gramercy Funds Management LLC (US)
Countries where the fund is registered:
Luxembourg, Austria, Germany, France, UK, Italy, Ireland, Switzerland
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 USD Capitalisation share class
ISIN: LU2485348770
Ticker: ALGIIUC LX
Launch: 3 Nov 2022
Institutional USD Distribution share class
ISIN: LU2485348853
Ticker: ALGMIUD LX
Launch: 6 Feb 2023
Institutional EUR hedged Distribution share class
ISIN: LU2485349232
Ticker: ALGIEHD LX
Launch: 6 Feb 2023
Institutional GBP hedged Distribution share class
ISIN: LU2485348937
Ticker: ALGIGHD LX
Launch: 6 Feb 2023