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Convertible bonds

Convertible bonds

Our convertible bond solutions are designed to leverage on the attractive asymmetric risk/return profile of convertible bonds, by allowing meaningful participation in equity markets’ rise and effective downside risk mitigation, while taking advantage of the asset class’ richness and diversity.


Since its launch in 1999, our convertible bond expertise has grown consistently. Today, with EUR 2.4 billion in AuM in this asset class and a team of 10 dedicated professionals, UBP is a key player in the convertible bond space.

Opportunities

  • An all-weather asset class, combining bond and equity features
  • An asymmetric risk/return profile to equities over the long term
  • Access to a long-term call option, to benefit from equity upside potential
  • The benefits of a bond-floor, to mitigate equity volatility and downside risk
  • Significantly reduced interest rate sensitivity vs. similar straight bond investment
  • Equity upside potential at much lower regulatory cost, thanks to the benefits of convexity

Investment philosophy & process

Our convertible bond strategies are managed using a unique and dedicated process, in place since 1999, built on the following key pillars:

  • Bottom-up security selection, focused on convexity
  • Top-down assessment of regional opportunities
  • Active management of the portfolios’ exposures (equity, interest rate) within strict ranges
  • Close attention paid to credit quality

Our range has been designed to leverage on the richness and diversity offered by convertible bonds. Thus we propose, both in the European and global spaces:

  • Defensive convertible strategies (defensive equity sensitivity profile)
  • Core convertible strategies (dynamic equity sensitivity profile)

 

Funds

Our Convertible Bond range offering

  • Convertibles Europe
  • Convertibles Global
Our Range Offering
Investment Manager

Marc Basselier

Marc Basselier joined UBP as Head of Convertible Bonds in December 2018. Before that he headed up AXA IM’s global and European convertible bond strategies team for over fifteen years.

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Institutional clients

With a team of more than 200 people, UBP Asset Management has built an on-the-ground presence in the world’s major markets through organic growth and selected partnerships.

Our fund range

Funds

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Insight 08.11.2018

UBP Investment Outlook 2019

Opportunities and Threats in a Desynchronised World