Wed, Sep 3, 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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the study

  2. Legal – GE Capital and Petters-related hedge fund in legal battle, SEC sanctions Donald Brownstein's hedge fund over conflicts of interest[more]

    GE Capital and Petters-related hedge fund in legal battle From Startribune.com: A billion-dollar legal battle is brewing in Florida over who knew what and when about the decade-long Ponzi scheme operated by former Wayzata businessman Tom Petters. The bankruptcy trustee for two failed Flo

  3. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  4. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  5. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius