M Convertibles
Eurozone Convertible Bonds
AD share class
30 APRIL 2015
NAV (AD)
Fund Total Assets
2 249.75
152.1M€
Evolution
130
M Convertibles (AD)
Exane Eurozone Convertible *
Presentation
The objective of M Convertibles fund, which is
based on european bond and equity markets, is to
outperform the Exane Eurozone Convertible Bond
index over the medium term, through a discretionary
investment management.
120
The M Convertibles fund aims to capture equity
market upside, whilst benefiting from the
defensive aspect provided by the bond
component of its investments, which mitigates
downside market risk.
110
100
90
*Benchmark
Source Bloomberg, base 100 as at 31/12/2007
80
Apr-11
Oct-11
Apr-12
Oct-12
Apr-13
Oct-13
Apr-14
Oct-14
Apr-15
Performance & Risk Indicators
M
25.9%
21.6%
Convertibles
AD
21.6%
30.4%
7.1%
4.1%
8.4%
14.1%
Perf. Inception (a)
Perf. 5 years
Perf. 3 years
Perf. YTD
Perf. 2014
Perf. 2013
Perf. 2012
Volatility 1 year
Sensitivity to stock**
Modified Duration
Perf. Inception (a)
M Convertibles (AD)
Exane Euro Convertibles
Exane ECI
Euro
25.9%
32.4%
6.8%
3.1%
9.8%
18.2%
Port.
25.4%
14.6%
11.3%
8.9%
7.8%
7.2%
7.1%
6.7%
6.6%
4.4%
Index
31.7%
8.7%
8.9%
14.7%
4.6%
7.3%
5.4%
0.0%
13.5%
5.2%
Investment
universe
Lower risk
Typically
lower rewards
Higher Risk
3
4
Portfolio
construction
Convertible
bonds screening
France
Italy
Germany
Spain
Portugal
Belgium
Austria
Sweden
Others
Port.
28.6%
20.1%
19.7%
8.2%
7.2%
5.5%
4.2%
1.7%
4.7%
Index
42.8%
8.3%
23.3%
6.8%
10.3%
2.0%
2.4%
0.0%
4.1%
Securities
selection and
monitoring
Underlying
stock upside
potential
Source Exane / Montpensier Finance
Risk / Return Profil
2
The M Convertibles portfolio construction process
is based on five key tenets :
Country
RépartitionBreakdown
Géographiques
Sector Breakdown
1
M Convertibles investment process focus on pure
Euro zone Convertibles Bonds.
6.1%
43.4
3.4
Source Bloomberg-Montpensier / Performance calculation : rolling month-end NAV
Volatility calculation : Friday NAV, rolling weekly steps / (a) 14/04/2011
** measuring the variation of convertible bond price related to a variation of 1% of the
underlying stock price.
Past performance is not indicative of current or future results.
The fund undertakes risks that may lead to a loss of capital.
Financials
Consumer Goods
Industrials
Oil & Gas
Health Care
Technology
Consumer Services
Telecommunications
Utilities
Basic Materials
The M Convertibles fund's investments are
managed on a discretionary basis. The portfolio
managers applies a multi-criteria stock picking
approach, combining equity upside potential, credit
risk and the technical profile's analysis of
convertible bonds.
5
6
7
Typically
higher rewards
Risk of capital loss
Discretionary management risk
Convertible bond risk, equity risk,
interest rate risk, credit risk
BEFORE ANY INVESTMENT, PLEASE
CAREFULLY READ THE KIID AND
PROSPECTUS OF THE UCIT
www.montpensier.com
Presented performance refer to AD share class. See full disclaimer overleaf
Montpensier Finance - 30 Avenue George V - Paris VIII - France
Regulated by the AMF, agreement n° GP 97-125 - Tel. : +33 1 (0) 45 05 55 55 - E-mail : [email protected] - AMF : 17, place de la Bourse, 75002 Paris, France
M Convertibles
Portfolio
Economic indicators remain on a positive trend in Europe. In the US, the very
weak initial Q1-2015 GDP growth estimates (+0.2% with rising inventories)
may stall the Fed.
In China, markets were fuelled by a shift towards a highly accommodating
monetary policy.
Among European convertible bonds, Unibail capitalised on market conditions
to redeem an existing tranche which had assumed a strong "equity" profile
and to issue a longer-dated CB with a more balanced profile.
We continued increasing our weightings in more balanced profiles. We
therefore reduced our BNP (Pargesa) 2016 holding, and added to the following
positions: Bekaert 2018, Parpublica (Galp) 2017, Rag (Evonik) 2021 and
Telecom Italia 2022.
We also initiated positions in CEZ (Mol) 2017 and HUSTHO (Richter) 2019,
which are both relatively undervalued and close to their bond floor.
Investment objective
The objective of the fund is to achieve annualised capital appreciation over
the medium term through a risk adjusted outperformance against the Exane
Eurozone Convertible Bond index. Convertible bonds are picked on an active,
discretionary and unconstrained approach. The recommended minimum
investment horizon is three years.
Investment Universe
The fund will invest its assets in convertible bonds and convertible bonds
related securities issued by companies that are headquartered in the
Eurozone and other OECD members, or conduct the preponderant part of
their activity in the Eurozone and other OECD members.
Main Holdings
Parpublica (Galp) - 5.25% - 09/2017
Telecom Italia - 1.125% - 03/2022
Caixaholding (CaixaBank) - 1% - 11/2017
Misarte (Kering) - 3.25% - 01/2016
Rag Stiftung (Evonik) - 0% - 02/2021
Fresenius - 0% - 09/2019
Eni (Snam) - 0.625% - 01/2016
Fresenius Medical Care - 1.125% - 01/2020
Alcatel Lucent - 0.125% - 01/2020
Rallye (Casino) - 1% - 10/2020
4.8%
4.7%
3.8%
3.5%
3.4%
3.2%
2.9%
2.8%
2.7%
2.6%
Source Montpensier Finance
Fund Data
Legal Status
AMF classification
Agreement date
Currency
Approved for public
distribution in
Management fee
Performance fee
Isin
Bloomberg
Asset Management
Company
Custodian
Valuation
Cut-off
Investment horizon
Sub. settlement
Red. Settlement
FCP UCITS IV
Diversified
28th December 1990
EUR
France, Switzerland,
Luxembourg
IC : 0.80%
ID : 0.80%
AC : 1.20%
AD : 1.20%
none
IC : FR0011033844
ID : FR0011029503
AC : FR0010722884
AD : FR0011029495
IC : ATLCONV FP
ID : - / AC : - / AD : Montpensier Finance
CACEIS Bank France
Daily (Caceis)
11:00 AM CET
3 years minimum
T+3
T+3
Montpensier Finance is a
signatory to the PRI (Principles
for Responsible Investment)
Legal notices : The present document is for simplified informative purposes only and represents 1) neither a proposal, purchase offer or any other type of
transaction relating to the financial instruments described herein; 2) nor a form of investment advice. It is important to read the most recent version of the
prospectus and the KIID (available on our website: www.montpensier.com) before making any investment decisions with regard to the financial instruments
described in the present document. Future investors must take the necessary steps to determine how much they can invest, on the basis of their knowledge of
financial markets, the legal, tax and accounting considerations which apply to their specific situation. The opinions expressed in the present document may be
modified without prior notice. Investors are responsible for ensuring that they are in possession of the most recent available version of the present document. Past
performances are no guarantee of current or future results. There is no guarantee on capital. Performance data do not reflect the fees that may be charged on
issue and redemption of shares. MorningstarTM rating is not guaranteed to be accurate, complete or timely. This document is not certified by the auditors, and will
not involve the responsibility of Montpensier Finance. Applicants for the subscription of the Fund will be required not to be Private Customers in the sense of
current regulations in force in the United Kingdom.
Montpensier Finance - 30 Avenue George V - Paris VIII - France
Regulated by the AMF, agreement n° GP 97-125 - Tel. : +33 1 (0) 45 05 55 55 - E-mail : [email protected] - AMF : 17, place de la Bourse, 75002 Paris, France