Fixed Income Convertible Bonds

Convertible Bonds

Convertible bonds offer investors risk-adjusted returns that can be powerful over time. They are a hybrid asset class, blending the defensive qualities of bonds with the strong performance of equities. 

We actively manage convertible-bond portfolios, aiming to maximize risk/return profiles. Our portfolios are widely diversified. With combined experience of over 30 years in convertibles, the team is in a prime position to evaluate the technical characteristics of the market and take advantage of short-term dislocations in valuations.

The team also exploits special situations to increase alpha. Such situations may relate to corporate takeovers, dividends, spin-offs or other corporate actions.

We offer three distinct strategies, each with different performance objectives:

  • Investment grade (high performance potential, at the risk of greater short-term volatility)
  • Balanced (balanced risk/return profile, at the cost of higher portfolio turnover and credit risk from exposure to sub-investment-grade issuers)
  • Dynamic (high performance potential, with the risk of higher volatility and credit risk from sub-investment-grade issuers)

Our convertible bond funds have consistently won Lipper Fund Awards, and one has a five-star Morningstar rating1.