The strategy invests in convertibles from issuers worldwide. Security selection is based on dynamic, proactive and proprietary research through which we aim to exploit capital appreciation opportunities through top-down, bottom-up and relative value analysis.
Strategy overview
- Convertible bonds offer the potential for equity-like returns but with lower volatility, combined with the security and capital protection characteristics provided by a bond investment. We believe an allocation to convertibles can enhance your portfolio’s risk/reward characteristics.
- We take a fundamental, benchmark-agnostic approach to managing convertible bonds. Our active management style and rigorous investment process offer investors a lower-volatility strategy with compelling alpha generation potential.
- Issuers of convertibles range from smaller growth companies to some of the largest, most recognizable companies in the world. Our portfolio comprises a wide spectrum of sectors and credits.
- We share research and analysis firm-wide, which means our dedicated convertible bonds research specialists benefit from the firm’s overall expertise
Our approach
Investment strategy
- A team-driven approach drawing on our proprietary convertible bond analysis, in-house macro expertise and portfolio construction experience.
- Our dedicated fundamental analysis underpins security selection and is based on dynamic, proactive, proprietary research where we seek to exploit capital appreciation opportunities through sector and issuer analysis.
- We adopt a benchmark-agnostic view and employs relative value techniques to evaluate the merits of each potential holding
- The strategy invests at least two thirds of its net assets in global convertible instruments
- The portfolio managers actively manage the exposure of the strategy in an effort to ensure optimal upside/downside participation with global equity markets
- A deep understanding of the broader macroeconomic environment, strong credit analysis and the ability to identify the potential equity drivers are fundamental to performance generation
- The six-stage investment process incorporates our macroeconomic outlook, fundamental company analysis, and relative value skills to construct a balanced and diverse portfolio