Lupus alpha Global Convertible Bonds A hedged
Lupus alpha Global Convertible Bonds A hedged
Lupus alpha Global Convertible Bonds A hedged
Lupus alpha Global Convertible Bonds A hedged
Lupus alpha Global Convertible Bonds offers investors access to an actively managed diversified portfolio of global convertible bonds. The Fund uses a variety of alpha sources: in addition to equity and credit risk premium, the fund exploits opportunities resulting from new issues, structural features of the bonds as well as niche market inefficiencies.
- Equity-like returns with lower fluctuations in value
- Similarity to bonds ('bond floor') helps to mitigate losses in the event of declining equity markets
- Access to issuers from the universe of small and mid-cap companies that often do not issue straight corporate bonds
- The average expected volatility is approximately half of that experienced in the wider equity market
- Shorter duration and interest rate sensitivity than corporate bonds
- In addition to share price movements and coupon income, additional sources of return include volatility, structural characteristics and individual valuation mark-ups
Our Convertible Bonds team can draw on many years of successful management of global convertible bonds:
FOCUSED TEAM
... with almost 30 years of combined experience in the management of convertible bond funds
EXCELLENT MARKET ACCESS
... to specialized brokers and to companies issuing convertible bonds
PROPRIETARY VALUATION MODEL
... for the assessment of opportunities and risks
Methodically sound, experienced risk management
... and so far not a single credit default on a bond since the team started managing convertible bonds
Global convertible bonds as a building block of asset allocation
The team primarily invests in global convertible bonds with a balanced equity sensitivity (delta of 30%-70%). The fundamental analysis and thorough security selection are at the core of the investment process.
In addition to the assessment of equity and credit risk of each convertible bond, extensive structural analysis is very important. The aim is to select the convertible bonds with the best risk-return profile depending on the economic situation. Currency risks are systematically hedged. The first step involves filtering the investment universe consisting of approximately 1,000 bonds. Investible securities are determined using a series of quantitative filters, particularly liquidity and credit quality. The resulting universe consists of around 250 to 300 bonds.
This is followed by a comprehensive bottom-up analysis of each convertible bond, which is the primary focus of the investment process. In addition to the analysis of the equity component, the credit quality and structural features are evaluated and market technicals are assessed. The portfolio is then constructed, with position sizes determined based on their effects on the overall portfolio.
All positions are subject to ongoing disciplined risk monitoring with regard to valuation, credit quality, equity sensitivity (delta) and other key risk figures.
The objective of Lupus alpha Global Convertible Bonds is to outperform the benchmark index (Refinitiv Global Focus Hedged Convertible Bond Index) over the long term.
Performance (gross in EUR)¹:
| from | to | Lupus alpha Global Convertible Bonds A hedged | Refinitiv Global Focus Hedged Convertible Bond Index (EUR) | |
|---|---|---|---|---|
| 1 month | 30.09.2024 | 31.10.2024 | -0.03 % | 0.20 % |
| 90 days | 02.08.2024 | 31.10.2024 | 5.28 % | 5.71 % |
| 1 year | 31.10.2023 | 31.10.2024 | 11.42 % | 15.03 % |
| 3 years | 29.10.2021 | 31.10.2024 | -17.52 % | -10.05 % |
| 5 years | 31.10.2019 | 31.10.2024 | 0.86 % | 15.13 % |
| this year | 29.12.2023 | 31.10.2024 | 2.93 % | 5.39 % |
| since inception | 15.01.2018 | 31.10.2024 | -0.87 % | 13.44 % |
| since inception p.a. | 15.01.2018 | 31.10.2024 | -0.13 % | 1.87 % |
| 12-month-timeframe (gross) | Lupus alpha Global Convertible Bonds A hedged | Refinitiv Global Focus Hedged Convertible Bond Index (EUR) |
|---|---|---|
| 31.10.2023 - 31.10.2024 | 11.42 % | 15.03 % |
| 31.10.2022 - 31.10.2023 | -1.83 % | -0.11 % |
| 31.10.2021 - 31.10.2022 | -24.60 % | -21.72 % |
| 31.10.2020 - 31.10.2021 | 8.82 % | 11.10 % |
| 31.10.2019 - 31.10.2020 | 11.15 % | 13.93 % |
| 31.10.2018 - 31.10.2019 | 3.88 % | 3.92 % |
Key Statistics³:
| as of | Lupus alpha Global Convertible Bonds A hedged | Refinitiv Global Focus Hedged Convertible Bond Index (EUR) | |
|---|---|---|---|
| Average rating (including internal ratings) | 31.10.2024 | BBB- | n.a. |
| Volatility p.a. | 31.10.2024 | 8.40 % | 7.30 % |
| Delta (Equity sensitvity) | 31.10.2024 | 54.50 % | 52.20 % |
| Current yield (in %) | 31.10.2024 | 1.50 % | 1.50 % |
| Interest rate sensitivity (in %) | 31.10.2024 | 1.70 % | 1.50 % |
| Bond duration (in years) | 31.10.2024 | 3.90 | 3.60 |
| Tracking Error | 31.10.2024 | 2.70 % | n.a. |
| Active Share | 31.10.2024 | 49.40 % | n.a. |
Top ten holdings (delta adjusted) as of 31/10/2024
| % Fund | |
|---|---|
| Alibaba Group Hldg. 0,5% 2031 | 2.2% |
| Ping An Insurance Group 0,9% 2029 | 1.6% |
| MicroStrategy Inc 0,6% 2030 | 1.4% |
| MicroStrategy Inc 0,6% 2028 | 1.4% |
| Akamai Techn. Inc 0,4% 2027 | 1.1% |
| The Southern Company 3,9% 2025 | 1.1% |
| Global Payments Inc 1,5% 2031 | 1.0% |
| Trip.com Group Ltd. 0,8% 2029 | 1.0% |
| JD.com Inc 0,3% 2029 | 0.9% |
| Live Nation Inc. 3,1% 2029 | 0.9% |
| Total weight of top ten | 12.6% |
| Total count of assets | 107 |
Regional Allocation (delta adjusted) as of 31/10/2024
Regional Allocation as of 31/10/2024
Sector allocation (delta-adjusted) as of 31/10/2024
Sector allocation as of 31/10/2024
Chances
- Investors can benefit frm the upside potential of convertible bonds and their various income sources.
- The asymmetrical risk-return profile allows investors to participate in stock markets while being pritected by the bond characteristics of convertibles.
- Active management enables to exploit opportunities and ensures stringent risk management.
Risks
- Counterparty default: If counterparties and issuers do not fulfill or only partially fulfill their contractual payment obligations, this can result in losses for the fund. Even when securities are carefully selected, losses caused by the financial collapse of issuers cannot be ruled out.
- Concentration risk: If investment is concentrated on particular assets or markets, the fund becomes partifularly heavily dependent on the performance of these assets or markets.
- Risk connected with derivatives transactions: Changes in the price of the underlying asset can devalue a derivative. If derivatives are used as part of the investment strategy, the Derivatives might have leverage effects that impacte the fund more strongly than the underlying asset. When selling derivates, there is the risk that the fund will suffer an indefinite loss amount.
- Operational risk: The fund can become the victim of fraud, criminal acts or errors by company employees or external thrid parties. Finally, management of the fund can be negatively impacted by external events such as fires, natural disasters or similar.
- Liquidity risk: If securities are traded in a relatively narrow market segment, it can be difficult to resell them in situations where there is insufficient liquidity.
- Interest-rate risk: Changes in market interest rates can affect the price of fixed-income securities. These fluctuations vary, however, depending on the term of the fixed-income securities.
- Market risk: The performance of financial products depends on the development of the capital markets.
Current fund data as of 11/19/2024
Lupus alpha Global Convertible Bonds A hedged WKN : A2H7DG | ISIN: LU1717012527 | |
|---|---|
Currency
| EUR |
Issue price
| 102,87 |
Redemption price
| 98,91 |
Fund volume
| 32,10 Mio. |
Launch date
| 16. January 2018 |
Distribution frequency
| distribution |
Portfolio managers
| Marc-Alexander Knieß, Stefan Schauer, Manuel Zell |
Performance fee
| 10 % |
Administration fee
| 1,20 % |
Hurdle Rate
| 2 % p.a. |
Subscription fee
| up to 4 % |
Benchmark
| Refinitiv Global Focus Convertible Bonds Index Hedged (EUR) |
Fund price publication
| www.fundinfo.com |
Features9 | Forward pricing (order day and trading day are distinct): Trading takes place one day after the order day, involving return of units and redemption orders (order day is 1 day before the trading day). |
Redemption Charge8 | 2.00% |
Current fund data as of 11/19/2024
Lupus alpha Global Convertible Bonds C hedged WKN : A2DJR6 | ISIN: LU1535992389 | |
|---|---|
Currency
| EUR |
Issue price
| 114,30 |
Redemption price
| 109,90 |
Fund volume
| 32,10 Mio. |
Launch date
| 06. February 2017 |
Minimum investment amount
| 50.000 |
Distribution frequency
| distribution |
Portfolio managers
| Marc-Alexander Knieß, Stefan Schauer, Manuel Zell |
Performance fee
| 10 % |
Administration fee
| 0,6 % |
Subscription fee
| up to 4 % |
Benchmark
| Refinitiv Global Focus Convertible Bonds Index Hedged (EUR) |
Fund price publication
| www.fundinfo.com |
Features9 | Forward pricing (order day and trading day are distinct): Trading takes place one day after the order day, involving return of units and redemption orders (order day is 1 day before the trading day). |
Redemption Charge8 | 2.00% |
This fund information is provided for general information purposes. This information is not designed to replace the investor‘s own market research nor any other legal, tax or financial information or advice. The information presented does not constitute an invitation to buy or sell or investment advice. It does not contain all key information required to make important economic decisions and may differ from information and estimates provided by other sources or market participants. We accept no liability for the accuracy, completeness or topicality of this information. All statements are based on our assessment of the present legal and tax situation. All opinions reflect the current views of the portfolio manager and can be changed without prior notice. Full details of our funds and their licenses of distribution can be found in the relevant current sales prospectus and, where appropriate, Key Investor Information Document , supplemented by the latest audited annual report and/or half-year report. The relevant sales prospectus and Key Investor Information Documents prepared in German are the sole legally-binding basis for the purchase of funds managed by Lupus alpha Investment GmbH. You can obtain these documents free of charge from Lupus alpha Investment GmbH, P.O. Box 1112 62, 60047 Frankfurt am Main, Germany, upon request by calling +49 69 365058-7000, by e-mailing service@lupusalpha.de or via our website www.lupusalpha.de. If funds are licensed for distribution in Austria the respective sales prospectus, Key Investor Information Document and the latest audited annual report or half-year report are available from the Austrian paying and information agent UniCredit Bank Austria AG based in Rothschildplatz 1, 1020 Vienna, Austria. Fund units can be obtained from banks, savings banks and independent financial advisors.
Neither this fund information nor its contents or a copy thereof may be amended, reproduced or transmitted to third parties in any way without the prior written consent of Lupus alpha Investment GmbH. By accepting this document, you declare your consent to comply with the aforementioned provisions. Subject to change without notice.
Lupus alpha Investment GmbH
Speicherstraße 49–51
D-60327 Frankfurt am Main
- Source: Lupus alpha; gross performance (BVI method): The gross performance considers all costs incurred at Fund level (e. g. management fee) and assumes reinvestment of any distributions. Costs incurred at customer level such as sales charge and securities account costs are not included. Unless otherwise specified, all indicated performance data show the gross performance. Please note: Past performance is not a reliable indicator the future performance.
- Source: Lupus alpha; the net performance assumes a model calculation based on an invested amount of EUR 1,000, the maximum sales charge and a redemption charge (see master data). It does not include individual costs of the investor, such as a securities account fee. (To this effect, please refer to the price list of your securities account provider.) Please note: Past performance is not a reliable indicator for future performance.
- Volatility is the range of variation of a security price or index around its mean value over a fixed period of time. A security is regarded as volatile if its price fluctuates heavily. The tracking error describes the standard deviation (volatility) between the Fund's performance and the performance of the benchmark index. The higher the tracking error, the more the performance of the Fund deviates from the performance of the benchmark index. The investment ratio means the part of the Fund that is not invested in cash. Delta: measures the sensitivity of the convertible bond price on changes to the underlying equity price. A delta of 0,4 means that the price of the convertible rises 4% if the underlying equity price rises 10%. Current yield is a bond's annual return based on its annual coupon payments and current price (as opposed to its original price or face). The formula for current yield is a bond's annual coupons divided by its current price. Interest rate sensitivity is a measure of how much the price of a fixed-income asset will fluctuate as a result of changes in the interest rate environment.
- The sales charge is the difference between the sales price and the unit value. The sales charge varies depending on the type of the Fund and the distribution channel and usually covers the advisory and distribution costs. The Distributor will demand the sales charge at its own discretion.
- The management fee is the fee for managing the Fund and taken from the Fund's assets; it is paid to Lupus alpha for the management and administration of the Fund.
- The performance fee is a performance-related remuneration depending on the performance or the achievement of specific objectives such as a better performance compared to a benchmark. The costs may also be levied if a pre-defined minimum performance has been achieved.
- Distributing Funds do not reinvest the generated income, they pay out the income to the investor.
- The redemption charge is the difference between the redemption price and the unit value. The redemption charge will be levied at the discretion of the Management Company and it’s to the sole benefit of the Fund's assets.
- for orders that reach the custodian before 12.00 PM on any valuation day