Fri, Dec 19, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Edmond de Rothschild AM wants to raise $1bn from Asia for new emerging markets CB fund

Friday, February 12, 2010
Opalesque Industry Update – Paris-based Edmond de Rothschild Asset Management (EdR AM) launched a new emerging-markets convertible-bond fund that will source most of its investments from Asia. Bruno Vanier, EdR AM’s CIO said the firm would try to raise at least $1bn AuM within a few years. The fund was incorporated on Dec. 31, 2009.

According to a report by AsianInvestor.net, the Paris-based asset manager will target European and U.S. investors in the short term, but would eventually target Asian investors. Vanier said there is no target date for a regional fundraising yet, but added he would like to ultimately source between 5% and 20% of assets from Asia.

He said the fund would allocate 70% of its assets to Asia. Hong Kong and China will be the major focus, with a 25% allocation. The rest of the assets will be sourced from Singapore (12%), South Korea (12%), India (6%), Malaysia (6%) and a small percentage from Vietnam.

Reports that EdR AM would launch a convertible bond fund came as a Ucits (long-only) convertible bond fund, launched by Swiss firm Pictet and managed by Jabre Capital, attracted EUR805m after only nine days, according to a CitiWire.com report yesterday.

An EdR AM report announced in late November-09 it would expand in Asia by building on its China franchise. Vanier said the firm had sold small- and mid-cap equities products in China and in some parts of Asia last year.

In September-09, the firm said in another report that convertible bonds would go through a turning point. “Convertible bonds bore the full brunt of the financial crisis and the fall in equity markets but the end of 2008 was an excellent entry point for the convertibles market,” the report said. “We expect the excellent performance posted by convertible bonds since the beginning of the year to continue in coming months as they benefit from attractive yield to maturity and low volatility.”

Several factors reinforce the firm’s conviction that convertibles will deliver excellent risk-adjusted performance whatever the equity scenario adopted: attractive new issues, a discount on the existing universe and a more balanced investor profile.

The firm’s shift in focus to Asia also came with a major change in its organization with the appointment this month of its first non-family chief executive. Nigel Higgins will take over the post from David de Rothschild on March 1. David will retain his position as chairman.

Edmond de Rothschild Investment Managers is the asset management subsidiary of La Compagnie Financière Edmond de Rothschild, the French branch of the Swiss LCF Rothschild Group. EdR AM specialises in equity, convertible bond and diversified management for institutional clients, independent financial advisors, partners and private clients. – KM –

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  4. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und

  5. Performance - Lansdowne, Man Group, other hedge funds profit from shorts in oil, Turmoil boosts hedge funds that bet against Russia, oil, CTAs post strongest returns since December 2010[more]

    Lansdowne, Man Group, other hedge funds profit from shorts in oil From Valuewalk.com: The rising short interest in oil companies implies that the worst for oil is yet to come. Data from Markit shows that short exposure in energy sector of S&P 500 is still looming close to the highest mar