Our Convertible Bonds team can draw on many years of successful management of global convertible bonds:
- More than 27 years joint experience managing convertible bond funds
- Excellent market access to specialised brokers and companies issuing convertible bonds
- Proprietary databases and analysis models
- Methodically sound, experienced risk management
Global convertible bonds as a building block of asset allocation
The team primarily invests in global convertible bonds with a balanced equity sensitivity (delta of 30%-70%). The fundamental analysis and thorough security selection are at the core of the investment process. In addition to the assessment of equity and credit risk of each convertible bond, extensive structural analysis is very important. The aim is to select the convertible bonds with the best risk-return profile depending on the economic situation. Currency risks are systematically hedged.
The first step involves filtering the investment universe consisting of approximately 1,000 bonds. Investible securities are determined using a series of quantitative filters, particularly liquidity and credit quality. The resulting universe consists of around 250 to 300 bonds. In a next step the ESG screening takes place. Securities, that do not meet our sustainability criteria, are excluded from the investment universe. Furthermore, we focus on companies that deliver a positive contribution to sustainable development goals.
This is followed by a comprehensive bottom-up analysis of each convertible bond, which is the primary focus of the investment process. In addition to the analysis of the equity component, the credit quality and structural features are evaluated and market technicals are assessed. The portfolio is then constructed, with position sizes based on their effects on the overall portfolio. All positions are subject to ongoing disciplined risk monitoring with regard to valuation, credit quality, equity sensitivity (delta) and other key risk figures.
The objective of the fund management is to achieve high capital appreciation by investing in convertible bonds selected according to sustainability principles.
The FNG seal is the quality standard for sustainable investment funds in German-speaking countries. It was launched in 2015 after a three-year development process involving key stakeholders. The associated sustainability certification must be renewed annually.
The FNG seal goes far beyond the pure portfolio view and is holistic and meaningful. With more than 80 questions, the sustainability investment style, the associated investment process, the associated ESG research capacities and a possible accompanying engagement process are analysed and evaluated. In addition, elements such as reporting, the fund company as such, measurable sustainability indicators, an external sustainability advisory board and good corporate governance issues play an important role.
Detailed information on the FNG seal can be found at https://www.fng-siegel.org. Information on the sustainable investment policy and its implementation of the Lupus alpha Sustainable Convertible Bonds can be found at: https://www.lupusalpha.de/institutionelle-investoren/produkte/fonds/lupus-alpha-sustainable-convertible-bonds/.
The Austrian Ecolabel denotes a better quality of life and environmental quality, clear and transparent information, great significance, companies and organisations taking responsibility for environmental policy, and high-level collaboration with optimal levels of service.
Products must satisfy a number of criteria to be certified with the Ecolabel.
These products undergo a comprehensive assessment before they can be certified. The assessment covers the environmental impact of the product or service and reviews the production process, waste management, quality levels and usability.
For more details on the Austrian Ecolabel, visit www.umweltzeichen.at. For information about the sustainable investment policy and implementation of Lupus alpha Sustainable Convertible Bonds, visit: https://www.lupusalpha.de/institutionelle-investoren/produkte/fonds/lupus-alpha-sustainable-convertible-bonds/.
The European SRI Transparency logo signifies that the Lupus alpha commits to provide accurate, adequate and timely information to enable stakeholders, in particular consumers, to understand the Socially Responsible Investment (SRI) policies and practices relating to the fund.
Detailed information about the European SRI Transparency Guidelines can be found on www.eurosif.org, and information of the SRI policies and practices of the Lupus alpha Sustainable Convertible Bonds can be found at https://www.lupusalpha.com/institutional-investors/products/fonds/lupus-alpha-sustainable-convertible-bonds/.
The Transparency Guidelines are managed by Eurosif, an independent organisation.
The European SRI Transparency Logo reflects the fund manager’s commitment as detailed above and should not be taken as an endorsement of any particular company, organisation or individual.