Monthly report Shânti Convertibles Asia January 2011 part P en USD et EUR en cours

Raphaelleb

Informations

• Publié par: Enna
• Nombre de lectures: 11
• Langue: English

Extrait

www.shanti-am.com August31, 2011 Objective Shânti Convertibles Asia primarily invests in convertibleperformance of the region's equity indices on a 3-year bonds in Asia, excluding Japan. The fund aims to track thehorizon, at about half as much volatility. Performances & Markets Shânti Convertibles Asia (P Class Share in USD) was downThe names with higher yields fared less poorly, quite by 5.12% in August.logically. These includedFufengwhich makes food additives in China,RoltaandFirstsourcein the Indian IT industry, and Over the month, the MSCA Asia ex-Japan lost 8.93% while Bakrielandin the Indonesian real-estate sector. credit fell steeply. The iTraxx Asia ex-Japan index shot up from 117 to about 148.In general, the steep fall in convertible bonds is not justified in our view. Their valuations now reflect the falls in the The Asian markets followed the developed markets underlying stocks, the higher credit risk and the tighter downwards, while monetary tightening (especially in India liquidity situation (which should be temporary), but not the and China) weighed on credit. higher volatility. We do not have a crystal ball, but we think In this context, all the cyclical stocks suffered (Vedantaand that present valuations offer a certain margin of error. Essar Energyamong the commodity stocks,AgileandKaisa in the Chinese real estate sector,AU OptronicsandEpistar in technology). Primary Market There was just one new issue, right at the beginning of thecredit profile, whileSK Telecomoffers volatility, and the JPY month. hasjust fallen due to intervention by the Japanese Name MaturitCou onPremium YieldAmount USD authorities. Posco - SK Telecom2016 0.00% 32% 1.00%311 While the paper was too expensive at issue, we were able to buy it in the secondary market. Posco, the Korean steelmaker issued an exchangeable with SK Telecom (alsoKorean) in JPY. The structure is original and presents a defensive proposition.Posco hasa solid Society & Economy Economies around the Asian region are slowing down.that 70% of small and medium enterprises (SMEs) will face However, it is worthwhile to distinguish between twosevere difficulties. different classes. The smaller exporter nations are suffering We have already spoken of this in these pages: the hard from the global slowdown, but India and China are reality is that the troubles of the SMEs in China will open the themselves trying to engineer “soft landings” as they door for larger companies with better access to funding, combat inflation, which is politically inacceptable (especially often off-shore. Thus, it is no surprise that in a falling real in China) as it affects the poor the most. estate market, the leaders have managed to increase their India has already hiked its rates 11 times over the last 18sales by 80%! months. Yet, inflation is still around 9%, albeit in retreat. Still in China, the latest rule to contain residential prices GDP grew by an acceptable 7.7% in the last quarter. modifies the marriage laws: now, the family apartment will The same is true in China where the authorities haveremain the property of the one who has purchased it, and enlarged the base for the calculation of mandatory reservewill not be shared in case of divorce (except in cases where requirements at the banks (after having raised ratesone spouse is polygamous or has lived more than three regularly for a year). The idea is also to restrain credit in themonths with a lover…). The idea is to reduce the social non-banking financial sector, where rates have reachedpressure that weighs on young men whose prospective in- historical levels. Having said that, inflation should comelaws often require them to own a new apartment before down in the months ahead and we await targeted flexibilitymarriage. measures to cushion the effects of a credit crunch on the industry. Anarticle in the China Business News indicated Investment & Transactions We continued to adjust the portfolio at the margin, withoutwas partially replaced byEssar Energy,whose security is changing the overall strategy.particularly undervalued. Hence, the Korean operatorLG U+made way for theAll in all, the portfolio remains oriented towards credit with a Philippinno conglomerateSan Miguel.In India,Tata Poweryield of about 11%. 21, rue du Mont Thabor 75001 Paris - Tel : [phone] - Fax : [phone] - [e-mail] SAS au capital de 456 365 € - SIRET 442 694 071 00022 - APE 652E - Code TVA FR32442694071 - GP 03023

Technology, 1.63%

Past performance may not necessarily be repeated and is not a guarantee of future results

Shânti Conv. AsiaJACI Asia ex-Japan 35 53 102.4 100.0 28.9 29.3 11.05 3.77 111.5 97.0 2.5 2.7 7.81% 7.27% (*) Yearly volatility since inception

Bas ic Materials , 3.38% Utilities , 1.03%

21, rue du Mont Thabor 75001 Paris - Tel : [phone] - Fax : [phone] - [e-mail] SAS au capital de 456 365 € - SIRET 442 694 071 00022 - APE 652E - Code TVA FR32442694071 - GP 03023

Legal form:

Real Es tate, 0.48%

Financial, 6.53%

P Share Jan Feb Mar Apr May JuJ Ag Sp ct ovDec Year

India, 7.51%

Cons um er, Cyclical, 4.66%

ISIN code: P Share USD:

Cons um er, Non- cyclical, 1.41%

Philippines , 2.11%

Taiwan, 1.22%

Korea, 0.75%

Indones ia, 0.67%

Statistic

Weight Yield 4.74% 5.49% 4.59 9.68% 4.58 6.27% 4.40 52.21% 4.09 -0.89% 3.89% 34.36% 3.78% 9.44% 3.75 -0.51% 3.72% 2.81% 3.64 6.69%

Premiu 27% 10% 63% 99% 16% 217% 118% 22% 19% 55%

P $2010-0.32% 2.43% 2.75-0.16% 1.886.72% P $20110.24 -1.10%1.53 2.86-0.64% -3.33% -0.28-5.12%-5.90% The fund was created on August 27th, 2010

Thailand, 1.15

Monthl Performances

LOSHCPA LX Equity

Subscription at unknown price

Order placed in D - 1 before 3pm

China Water Affairs 2.5% 15 Avr 15 Kaisa 8% 20 Dec 15 Shui On 4.5% 29 Sep 15 Subex 5% 9 Mar 12 San Miguel 2% 5 May 14 China Green 3% 12 Apr 13 AU Optronics 0% 13 Oct 15 Intime 1.75% 27 Oct 13 Guangdong Investment 3% 21 Jul 16 Vedanta 5.5% 13 Jul 16

Minimum subscription: P Share USD:

Ince tionDate: P Share USD:

Delta ad usted breakdown bsector

Bloomberg Code: P Share USD:

Payment in D + 3

Dealing charge of 0.75% retained by the Fund.

Fixed management fees (max): 2%

Energy, 0.48% Divers ified, 2.11%

6.0%

9.0%

-3.0%

Performance fees: 10% ofthe Fund's performance with HWM

Performance since inception: P Share USD:0.42%

Valuation:

NAV P Share USD

Transfer Agent: Subscriptions and Redemptions:

CACEIS Bank Luxembourg Tel: [phone] Fax : [phone]

3.0%

0.0%

Monthly performance P NAV USD

Delta 48% 48% 24% 4% 52% 30% 16% 51% 48% 31%

Net Asset Value on 31 August 2011: P Share USD:1 004.17 $

1 040

August 2011

960

1 000

Indus trial, 6.04%

Au ust27 2010

Main Exosure

LU0532304747

10 000 $

A sub-fund of Lombard Odier Selection, a SICAV incororated in Luxembour UCITS III

Assets under management: 26 520 427 $

Weekly (on Thursday)

Hong Kong, 5.40%

Delta ad usted breakdown bcountr

Aus tralia, 1.07%

-6.0% 920 27 Aug 1027 Sep 1027 Oct 1027 Nov 1027 Dec 1027 Jan1127 Feb 11 27 Mar 1127 Apr 1127 May 1127 Jun 1127Jul 1127 Aug 11

Number of lines Gross exposure Delta % Yield % Premium % Maturity (years) Volatilit *

China, 8.99%

1 120

LOS - Shânti Convertibles Asia

1 080