
Diverse Alpha sources and limited risk
Convertible bonds are hybrid securities. They combine the strengths of two asset classes and are essentially bonds with an equity call option. They are debentures with a fixed interest rate that can be converted into equities within a specified period at a pre-set rate. One key feature of convertible bonds is that they are more reactive to rising share prices than to negative trends. This asymmetric risk/return profile (convexity) offers investors the opportunity to participate in upside potential on the equity markets while limiting possible losses due to its bond-like nature.
They offer investors multiple alpha sources. The various performance drivers include price trends in the underlying equity, the coupon and the credit spread (difference in yield compared to a risk-free bond with the same maturity) and structural features such as contractual safeguard clauses against capital dilution or takeover. Alongside an investment in blue chips, they also provide access to smaller and medium-sized companies that are under-represented in the bond market and thus offer additional diversification.
Strategies
... for global convertible bonds, the sustainability variant awarded the FNG seal
Defaults
... in all the convertible bond portfolios that the team has managed to date
Mio EUR volume under managment
... in institutional accounts and in mutual funds
Our convertible bond strategies are aimed particularly at investors looking for alternatives beyond government and corporate bonds in the ongoing low-interest-rate environment. They help to enhance the earnings potential of the overall portfolio and efficiently improve diversification while reducing duration risk.
Convertible bonds only:
No investment in synthetic securities or off-type risks
Active management:
Control of equity sensitivity in the overall portfolio
Diversification:
Global investment universe
Clean slate:
Team has never had a credit default in its portfolios
Fund currency:
Systematic hedging of foreign currency risks
Sustainability:
Strategy variant with sustainable ESG criteria and SDG contribution
We take performance personally
With us, investors know which experienced, skilled fund manager is responsible for the performance of each fund.


