Since its launch in 1999, our convertible bond management expertise has grown consistently. Today, we have a broad offering of European and global convertible bond strategies that reflects the wide variety in the asset class. Convexity is the key feature that is always at the core of our investment approach. With a team of 9 dedicated professionals, UBP is a major player in the convertible bond space.
- An all-weather asset class that adapts to different market conditions, combining bond and equity features
- Convexity offering an asymmetric risk/return profile over the long term
- Access to a long-term call option to benefit from the upside potential of the underlying equity
- The benefits of a firm bond-floor to mitigate equity volatility and downside risk
- Significantly reduced interest rate sensitivity vs. similar straight bond investments
- Equity upside potential at a much lower regulatory cost thanks to convexity
Investment philosophy & process
- Our convertible bond strategies are managed using a unique and dedicated process, built on the following key pillars:
- Bottom-up security selection focused on convexity
- In-depth fundamental analysis of the underlying equity as a performance-driver
- Close attention paid to credit quality
- Long-term management aiming at generating value in different market cycles
- Discretionary management of the portfolios’ exposures (equity, interest rate)
Our range of strategies has been designed to leverage on the richness and diversity of convertible bonds both in the European and global spaces.