Fund performance

Annual performance
TreeTop Convertible International BH USD

Evolution of the annual performance of TreeTop Convertible International BH USD vs MSCI AC World(1)

(1) MSCI All Countries World Index Net Dividend Reinvested in local currency. The fund is actively managed and its portfolio differs from the index mentioned. Consequently, the performance of the fund will differ from the performance of the index.

Evolution of the NAV (Net Asset Value) of TreeTop Convertible International BH USD vs MSCI AC World(1)

(1) MSCI All Countries World Index Net Dividend Reinvested in local currency. The fund is actively managed and its portfolio differs from the index mentioned. Consequently, the performance of the fund will differ from the performance of the index.

Latest NAV in USD

Cumulative returns
as of 16-11-2018

Fund MSCI AC World (1)
YTD -18,54% -1,29%
1 year -15,25% 2,07%

Annualized returns as of 16-11-2018

Fund MSCI AC World (1)
3 years -3,52% 8,97%
5 years 0,35% 7,86%
10 years 8,09% 11,02%
Origin* 5,02% 6,61 %

* from launch date of the sub-fund (2005).

Past performance is no guarantee of future performance.

Source: Banque Degroof Petercam Luxembourg and Bloomberg for the period 2005 - 2018

The returns are calculated in the reference currency: USD (returns in EUR can go up or down depending on exchange rate fluctuations). The historical performance in EUR was negatively affected by exchange rate fluctuations.

The returns are calculated in the reference currency of the share class, reflect ongoing charges, including management and performance fees, taken from the sub-fund, but do not reflect any entry charges you might have to pay.

The calculations of yields are based on the historical NAVs which are consultable in the newspapers l'Echo or De Tijd.

General information

Name of fund TreeTop Convertible SICAV
Name of sub-fund TreeTop Convertible International
Type of product/ legal form/ applicable duty and applicable duration UCITS sub fund, being a SICAV under Luxembourg Law with undefinite end
Share class BH USD
Dividend policy Capitalisation
Launch date 2005
ISIN code LU0221833030
Minimum initial inv. $250
Type of fund UCITS
Liquidity Daily
Domicile Luxembourg
Type of investor All investors
Management fee 1.20%
Performance fee 12% High Watermark
Entry fee 0%
Ongoing charges (as of 31/12/17) 1,55%
Stock exchange transaction tax at redemption (or conversion) in Belgium 1,32% (max 4.000 EUR)
Belgian tax on savings (Belgian withholding tax at redemption) 30%
Belgian withholding tax on dividends N/A


Risk and Reward Profile

1 2 3 4 5 6 7

Lower risk (but not risk-free)

Potentially lower reward

Higher risk

Potentially higher reward

For more information about the fund’s risk/reward profile see the latest KIID and prospectus.

Mediation service
For complaints relating to investment products and services - address your concern to the financial sector Ombudsman: Banks – Credits - Investments Mediation Service, North Gate II, Avenue Roi Albert II 8 B-1000 Brussels ( or [email protected]).
The mediation service may suggest solutions for resolving the dispute. In the event of a lack of mutual acceptance of the proposed solutions, either party can turn to the competent courts.

Handling of client complaints
Send your complaint, in writing, to the attention of the “Compliance Officer”, at the following address: TreeTop Asset Management Belgium, rue des Francs, 79, 1040 Brussels.
We will send you an acknowledgement of receipt within 5 working days. We will analyze your complaint and give a detailed response in the month following its receipt, provided that the complaint is complete and specific.



It is essential to read and aknowledge the fund information documents before subscribing. The KIID, prospectus and the last annual and semi annual reports are at your disposal.

The NAVs of the sub­fund are also published in the newspapers l'Echo or De Tijd.

You can obtain additional information on this fund, including the prospectus, the latest annual report, any later semi-annual report and the most recent price of the shares from the fund management company established at 12, rue Eugène Ruppert, L-2453 Luxembourg. They are available free of charge in English, French and Dutch.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ann. Perf.
2018 7,75% -2,91% -5,81% 0,03% 0,25% -3,13% 1,71% -2,36% -4,01% -10,41% - - -18,54% (YTD)
2017 4,04% 4,38% 6,53% 0,01% 0,80% -0,93% 2,10% -0,80% 1,04% 0,45% -2,53% 3,15% 19,40%
2016 -9,91% -0,87% 3,98% -1,65% 2,11% -4,89% 5,81% 0,66% -1,27% -1,18% 0,31% -0,17% -7,70%
2015 1,09% 1,58% 2,13% 1,36% 0,64% -3,16% 0,67% -4,87% -2,22% 7,26% 0,60% -3,20% 1,30%
2014 -0,93% 4,41% -0,45% -0,28% 1,86% 0,56% 1,31% 1,85% -1,57% 0,59% 1,27% -0,55% 8,20%
2013 1,71% 0,98% 1,07% 0,73% 2,50% -3,04% 3,01% 0,28% 2,44% 4,17% 3,10% 1,78% 20,20%
2012 7,52% 3,00% 0,43% 0,47% -5,40% 2,17% 2,50% 0,67% 2,05% -0,14% 1,43% 3,65% 19,40%
2011 -0,08% 0,22% 6,10% 3,51% -0,72% -1,87% -1,32% -8,86% -7,42% 8,96% -6,96% 0,56% -9,00%
2010 -0,30% 0,85% 6,12% 1,95% -7,66% -0,43% 6,69% -0,60% 6,67% 4,30% -2,69% 0,62% 15,50%
2009 1,60% -2,25% 5,60% 13,11% 7,33% -2,20% 8,89% 4,71% 4,09% -1,72% 0,31% 3,12% 50,20%
2008 -10,46% 2,64% -4,20% 8,16% 1,85% -4,21% -5,14% -2,29% -15,84% -12,46% -5,25% -0,62% -40,30%
2007 -0,98% -0,02% 0,90% 5,75% 7,71% -2,16% 0,71% -2,01% 4,58% -0,55% -4,16% 2,57% 12,30%
2006 7,35% -1,36% 1,70% 6,14% -5,72% -2,81% -1,40% 1,32% -0,26% 2,21% 0,27% -1,23% 5,60%
2005 - - - - - - 6,36% 0,58% 7,62% -4,10% 6,04% 3,86% 21,60%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Perf. Ann.
2018 458,80 445,45 419,56 419,68 420,71 407,53 414,48 404,70 388,47 348,02 - - -18,54% (YTD)
2017 370,98 387,24 412,53 412,58 415,88 412,00 420,65 417,29 421,63 423,52 412,79 425,79 19,40%
2016 348,03 344,99 358,73 352,80 360,23 342,63 362,53 364,92 360,30 356,04 357,16 356,57 -7,70%
2015 385,42 391,50 399,85 405,30 407,90 394,99 397,62 378,24 369,85 396,71 399,10 386,31 1,30%
2014 348,94 364,34 362,71 361,69 368,43 370,50 375,36 382,31 376,32 378,55 383,36 381,26 8,20%
2013 298,01 300,93 304,16 306,38 314,04 304,48 313,65 314,54 322,20 335,64 346,05 352,21 20,20%
2012 263,85 271,76 272,93 274,21 259,39 265,03 271,66 273,47 279,07 278,67 282,66 292,99 19,40%
2011 269,60 270,20 286,68 296,74 294,60 289,10 285,27 260,00 240,72 262,28 244,03 245,40 -9,00%
2010 232,84 234,81 249,19 254,05 234,58 233,56 249,19 247,70 264,21 275,56 268,16 269,81 15,50%
2009 157,96 154,41 163,05 184,43 197,94 193,59 210,80 220,73 229,75 225,79 226,48 233,54 50,20%
2008 233,04 239,20 229,16 247,86 252,45 241,83 229,39 224,14 188,63 165,12 156,45 155,48 -40,30%
2007 229,45 229,41 231,47 244,79 263,66 257,96 259,78 254,56 266,22 264,75 253,74 260,26 12,30%
2006 235,47 232,26 236,20 250,70 236,37 229,72 226,51 229,50 228,90 233,97 234,60 231,72 5,60%
2005 - - - - - - 191,86 192,98 207,69 199,17 211,20 219,35 21,60%

Fund strategy

The sub-fund aims to increase the value of your investment over the long term.

Under normal market conditions, the main part of the portfolio is invested in convertible bonds and/or other fixed income securities, bank deposits and warrants or call options on shares and, up to 10% of the sub-fund's assets in units of undertakings for collective investment that represent these asset classes. The sub-fund may also invest in shares or other instruments equivalent to shares and use derivatives for investment purposes or to reduce investment risks (hedging).

The fund manager selects - based on criteria such as product innovation, quality of management, sector leadership, valuation - companies around the world that appear to offer solid growth prospects or whose securities seem to him undervalued. The sub-fund invests in a concentrated portfolio made of shares of these companies and/or in financial instruments convertible in shares or entitling the sub- fund to acquire shares of these companies. The main part of the portfolio is managed in an endeavour to replicate the financial behaviour of a convertible bonds portfolio. To this end, the fund manager ensures that (i) at least 50% of the portfolio is invested in bonds or other fixed income instruments and (ii) the global exposure of the sub-fund to the equity market, through shares and other financial instruments whose value is linked to shares, shall not exceed 100% of the sub-fund's net asset. The manager's objective is to hedge positions in currencies other than the US Dollar which represent more than 2.5% of the net asset value of the share class.

The MSCI All Country World index provides a reference of the investment universe of the fund manager. It is provided for information purpose only as indeed the sub-fund is managed on a discretionary basis and its portfolio will show a significant departure from the index.

The sub-fund may not be appropriate for investors who plan to withdraw their money within 5 years.

This share class does not distribute dividends (meaning that any income earned by the sub-fund is added to the share price).

You can place orders to buy or sell shares of the sub-fund daily.

These objectives as well as the investment policy are an exact copy of those indicated in the corresponding KIID.

Fund Manager

Jacques Berghmans

To be successful, a team of financial managers must maintain a rigorous process in selecting investments. Here are the principal selection criteria employed:

Leading companies

Investing is, above all, participating as a shareholder in a company's future. Most of the future profits depend on the company’s management vision and on its capacity to adapt. This management vision must be coupled with an operational aspect of management, which we verify both in terms of growth (turnover, profits, investments, market share…) as well as profitability (profit margins, return on equity…).

Growth sectors

All sectors are subject to change and thus to cycles. Timely detection of the catalysts of these changes is important: innovation in products or in habits of consumption, economies of scale leading to the consolidation of a sector through mergers or acquisitions, the presence of high barriers to entry… Conversely, it is as important to react quickly to sectors maturing or becoming too competitive.

Inexpensive valuation

A recognized company in a growth sector is generally expensive… we must keep in mind that investing in stocks is buying a future stream of profits and dividends that are basically forecast by taking into account interest rates and risk premiums. In general, outperformance is achieved when we buy this estimated stream cheaply and then sell when it becomes expensive. To detect the beginnings and endings of sectoral cycles before others do requires strong anticipatory abilities.

Fundamental momentum

Earnings growth and changes in growth rates are key figures in calculating the actual value of future dividend flows. The value of a stock with an estimated earnings per share growth rate of 10% per year, should double when the estimated growth rate increases to 15% per year for a certain period.
It is thus very important to correctly predict changes in corporate earnings growth.

Technical momentum

A stock chart indicates a price trend. In absolute terms, it reflects what investors expect for any stock over a period of time. This trend is also interesting in relative terms (in relation to competing companies or indices) because it gives an idea of how the market perceives the company, independently of the short-term market direction. Finally, a stock chart can alert the manager when there is a glaring discrepancy with the direction of the fundamentals published by the company.

Investing means taking a gamble on the future.

In addition to errors of judgement, numerous uncontrollable events of a political (political crisis, war…) economic, financial (banking crisis, change in monetary policy…) or technological nature (discovery leading to profound changes…) or risks specific to each company (strategic error, competitive changes…) can transform a potentially attractive investment into a true nightmare.

The methods generally used to assess the risk of a portfolio are based essentially on the analysis of the volatility of the securities relative to the indices.   By trying to minimize deviations from the indices, we inevitably get the performance of the latter, diminished by management costs without regard to the absolute performance of the funds managed.

We resolutely take issue with this approach, given that the true risk of the portfolio is to lose money in the medium term, and believe that it is better to incur higher volatility if this is the condition required to obtain a positive performance over the medium term.

The concept of emerging markets well illustrates this over the last ten years: many managers only allocated them a very small proportion of their portfolios because they were more volatile, thus depriving themselves of a major contribution to the performance of the funds managed.

The principal way to efficiently reduce risk is geographic and sectoral diversification, which we selectively practice, because dispersion over too many securities penalizes performance. The following limits set by the managers are objectives, which can be exceeded occasionally, depending on market developments.

Portfolio concentration

The sub-fund invests in a concentrated portfolio.

Sectoral diversification

The fund manager invests opportunistically without any sector allocation constraints.

Geographical diversification

The fund manager invests globally without any geographical allocation constraints.

Preservation of capital

The fund manager ensures that (i) at least 50% of the portfolio is invested in bonds or other fixed income instruments and (ii) the global exposure of the fund to the equity market, through shares and other financial instruments whose value is linked to shares, shall not exceed 100% of the fund’s net asset.

Hedging of currency risk

We believe that betting on currencies is risky and generally destroys shareholders’ value on the long term. Our added value lies in the selection of promising stocks and the management of equity risk. For the sake of transparency, to bring performance and to simplify our management process, the manager's objective is to hedge positions in currencies other than the US Dollar which represent more than 2.5% of the net asset value of the share class.

Main risk factors defining the risk level

The sub-fund does not offer either protection or any capital guarantee or a guaranteed yield. The risk/reward rating of the sub-fund reflects the following factors: 1) it invests in shares and/or other instruments such as warrants or call options on shares and convertible bonds whose value is linked to shares, 2) it may invest in a limited number of securities, 3) it may invest a part of its portfolio in warrants or call options on shares that are more volatile than shares and may loose their value at expiry date, and 4) it may favor particular economic sectors or regions, including emerging markets.

Other risks to be considered

Moreover, it is also exposed to the following risks: liquidity (convertible bonds may become hard to value or to sell at a desired price and time), default (an issuer’s bonds could become worthless if it is unable to repay its debts), counterparty (the sub-fund could lose money if any entity with which it does business becomes unwilling or unable to honor its obligations to the sub-fund), legal and tax risks (the sub-fund could be affected by foreign legal and tax changes, some of which may be retroactive).

Portfolio allocation

Geographic spread

Including (>10%): China 34,4% - India 17,2% - Belgium 15,4%

Top 10 sorted by underlying

Description Weight (% NAV)
Total 67,0%
AGEAS/FORTIS BANK "cashes" 4,8%
3SBIO INC 4,7%

Type of securities

Sector breakdown by underlying value

Equity Play / Yield Play

Top 5 convertible bonds

Top 5 equities

Top 10 by instrument

Description Weight (% NAV)
Total 63,2%
VIPSHOP HOLDING 1.5% 15/03/2019 10,0%
CTRIP.COM INTL LTD 1% 01/07/20 4,7%
3SBIO/STRATEGIC INTL 0% 21/07/22 4,7%
MOMO 1.25% 01/07/25 4,6%
UPL LTD 3,4%

Market capitalisation

Evolution of ratios

* Before 30/06/2006, these data are issued from underlying stocks of the SICAV TreeTop Convertible International.

Other statistics

Delta 0.74
Credit spread (bp) 235
Duration 5.53
Market cap. (€ bill.) 7.78
1Y projected P/E 11.30
Estimated 5Y LTG 16.74
Current ROE 17.39