Fri, Apr 20, 2018
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 - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its