Lupus alpha Sustainable Convertible Bonds R
Lupus alpha Sustainable Convertible Bonds R
Lupus alpha Sustainable Convertible Bonds R
Lupus alpha Sustainable Convertible Bonds R
Investors should note that, relative to the expectations of the Autorité des Marchés Financiers, this UCITS presents disproportionate communication on the consideration of non-financial criteria in its management.
Lupus alpha Sustainable Convertible Bonds offers investors access to an actively managed diversified portfolio of global convertible bonds which are selected according to principles of sustainable investing (ESG). The Fund uses a variety of alpha sources: in addition to equity and credit risk premiums, the fund exploits opportunities resulting from new issues, structural features of the bonds as well as niche market inefficiencies.
- Selection of convertible bonds according to principles of sustainable investing (ESG)
- The average expected volatility is approximately half of that experienced in the wider equity market
- Shorter duration and interest rate sensitivity than corporate bonds
- 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
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 (Thomson Reuters Global Focus Hedged) over the long term.
Experienced fund managers
Our Convertible Bonds team looks back on many years of successful global convertible bond management. Before Marc-Alexander Knieß and Stefan Schauer joined Lupus alpha, they have been working together successfully for several years. Manuel Zell joined the Lupus alpha Global Convertible Bonds team in June 2017.
Performance (gross in EUR)¹:
| from | to | Lupus alpha Sustainable Convertible Bonds R | |
|---|---|---|---|
| 1 month | 30.09.2024 | 31.10.2024 | -1.18 % |
| 90 days | 02.08.2024 | 31.10.2024 | 3.13 % |
| 1 year | 31.10.2023 | 31.10.2024 | 10.34 % |
| 3 years | 29.10.2021 | 31.10.2024 | -15.68 % |
| 5 years | n.a. | n.a. | n.a. |
| this year | 29.12.2023 | 31.10.2024 | 1.04 % |
| since inception | 09.12.2020 | 31.10.2024 | -12.00 % |
| since inception p.a. | 09.12.2020 | 31.10.2024 | -3.23 % |
| 12-month-timeframe (gross) | Lupus alpha Sustainable Convertible Bonds R |
|---|---|
| 31.10.2023 - 31.10.2024 | 10.34 % |
| 31.10.2022 - 31.10.2023 | -3.75 % |
| 31.10.2021 - 31.10.2022 | -20.60 % |
Key Statistics³:
| as of | Lupus alpha Sustainable Convertible Bonds R | |
|---|---|---|
| Average rating (including internal ratings) | 31.10.2024 | BBB- |
| Volatility p.a. | 31.10.2024 | 7.90 % |
| Delta (Equity sensitvity) | 31.10.2024 | 46.90 % |
| Current yield (in %) | 31.10.2024 | 1.10 % |
| Interest rate sensitivity (in %) | 31.10.2024 | 1.80 % |
| Bond duration (in years) | 31.10.2024 | 3.50 |
Top ten holdings (delta adjusted) as of 31/10/2024
| % Fund | |
|---|---|
| Alibaba Group Hldg. 0,5% 2031 | 2.1% |
| Akamai Techn. Inc 0,4% 2027 | 2.1% |
| Ping An Insurance Group 0,9% 2029 | 1.4% |
| Global Payments Inc 1,5% 2031 | 1.2% |
| JD.com Inc 0,3% 2029 | 1.1% |
| ON Semiconductor Corp 0,5% 2029 | 1.1% |
| Welltower Inc 2,8% 2028 | 1.0% |
| Amadeus IT Group S.A. 1,5% 2025 | 1.0% |
| LEG Immobilien AG 1% 2030 | 0.9% |
| Uber Technologies Inc 0,9% 2028 | 0.9% |
| Total weight of top ten | 12.8% |
| Total count of assets | 86 |
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
- Access to global convertible bonds and hence to a variety of different sources of return.
- Convertible bonds offer the opportunity to participate in the upside potential of equities while providing the safety of a bond due to the asymmetric risk/return profile.
- Active management allows investors to exploit opportunities and ensures stringent risk management.
Risks
- Risk of price changes: Experience shows that equities are subject to sharp price fluctuations and thus the risk of price declines. These fluctuations are particularly impacted by the earnings development of the issuing company as well as sector trends and overall economic development.
- Counterparty default risk: If counterparties and issuers do not fulfil or only partially fulfil 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.
- 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. If counterparties do not fulfil or only partially fulfil 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.
- Interest-rate risk: Changes in market interest rates can affect the prices of fixed-income securities. These fluctuations vary, however, depending on the term of the fixed-income securities.
- Risks connected with derivatives transactions, particularly options: Changes in the price of the underlying asset can devalue an option. Options have leverage effects that impact the fund more strongly than the underlying asset. When selling options, there is the risk that the fund will suffer an indefinite loss amount.
- Operational risks: The fund can become the victim of fraud, criminal acts or errors by company employees or external third parties. Finally, management of the fund can be negatively impacted by external events such as fires, natural disasters or similar.
Current fund data as of 11/21/2024
Lupus alpha Sustainable Convertible Bonds R WKN : A2DTNW | ISIN: DE000A2DTNW5 | |
|---|---|
Currency
| EUR |
Issue price
| 89,16 |
Redemption price
| 85,73 |
Fund volume
| 86,88 Mio. |
Launch date
| 10. décembre 2020 |
Minimum investment amount
| none |
Distribution frequency
| distribution |
Portfolio managers
| Marc-Alexander Knieß, Stefan Schauer, Manuel Zell |
Administration fee
| 1,35 % |
Subscription fee
| 4,00 % |
Fund price publication
| www.fundinfo.com |
Features7 | Forward Pricing (Ordertag und Handelstag fallen auseinander): Ein Tag nach dem Ordertag erfolgt der Handestag mit Abrechnung von Anteilabrufen und Rücknahmeaufträgen (Der Ordertag liegt 1 Bankarbeitstag vor dem Handelstag). |
Current fund data as of 11/21/2024
Lupus alpha Sustainable Convertible Bonds C WKN : A2DTNQ | ISIN: DE000A2DTNQ7 | |
|---|---|
Currency
| EUR |
Issue price
| 101,74 |
Redemption price
| 97,83 |
Fund volume
| 86,88 Mio. |
Launch date
| 01. mars 2018 |
Minimum investment amount
| 50.000 |
Distribution frequency
| distribution/semi-annual |
Portfolio managers
| Marc-Alexander Knieß, Stefan Schauer, Manuel Zell |
Administration fee
| 0,75 % |
Subscription fee
| up to 4 % |
Fund price publication
| www.fundinfo.com |
Features7 | 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). |
The FNG seal is the quality standard for sustainable investment funds in German-speaking countries. It was launched in 2015 after a three-year development process involving key stakeholders. The associated sustainability certification must be renewed annually.
The FNG seal goes far beyond the pure portfolio view and is holistic and meaningful. With more than 80 questions, the sustainability investment style, the associated investment process, the associated ESG research capacities and a possible accompanying engagement process are analysed and evaluated. In addition, elements such as reporting, the fund company as such, measurable sustainability indicators, an external sustainability advisory board and good corporate governance issues play an important role.
Detailed information on the FNG seal can be found at https://www.fng-siegel.org. Information on the sustainable investment policy and its implementation of the Lupus alpha Sustainable Convertible Bonds can be found at: https://www.lupusalpha.de/institutionelle-investoren/produkte/fonds/lupus-alpha-sustainable-convertible-bonds/.
The Austrian Ecolabel denotes a better quality of life and environmental quality, clear and transparent information, great significance, companies and organisations taking responsibility for environmental policy, and high-level collaboration with optimal levels of service.
Products must satisfy a number of criteria to be certified with the Ecolabel.
These products undergo a comprehensive assessment before they can be certified. The assessment covers the environmental impact of the product or service and reviews the production process, waste management, quality levels and usability.
For more details on the Austrian Ecolabel, visit www.umweltzeichen.at. For information about the sustainable investment policy and implementation of Lupus alpha Sustainable Convertible Bonds, visit: https://www.lupusalpha.de/institutionelle-investoren/produkte/fonds/lupus-alpha-sustainable-convertible-bonds/.
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.
- Distributing Funds do not reinvest the generated income, they pay out the income to the investor.
- for orders that reach the custodian before 12.00 PM on any valuation day
Summary
The fund invests in global convertible bonds. It promotes environmental and social characteristics in accordance with Article 8 of the EU Disclosure Regulation (Regulation (EU) 2019/2088) but does not aim for sustainable investments. Investments are made in securities selected based on sustainability principles. This involves applying exclusion criteria related to environmental (E), social (S), and governance (G) aspects. The fund does not invest in securities of companies engaged in controversial business sectors (e.g., controversial weapons), that violate international norms (e.g., OECD Guidelines), or have significant adverse impacts on specific sustainability factors (PAIs) (e.g., activities negatively affecting biodiversity-sensitive areas). Additionally, ESG criteria are integrated into positive selection as well as the fundamental analysis, and influence on relevant ESG topics is exerted through an active engagement policy.
Sustainability indicators are measured and evaluated based on external ESG data from MSCI. Data gaps are addressed through direct contact with companies or alternative data sources. Lupus alpha has integrated the relevant sustainability aspects of the strategy into its existing due diligence procedures for the selection and monitoring of investments to ensure compliance with the promoted characteristics.
More information is provided in the RTS template of the fund’s annual report, which can be found here.
History of Change
Initial version
![[Translate to French:] FNG Nachhaltigkeitssiegel](/fileadmin/_processed_/a/7/csm_FNG_Nachhaltigkeitssiegel_DE_2024_bef0522463.png "[Translate to French:] FNG Nachhaltigkeitssiegel")
