Union Bancaire Privée, UBP SA (UBP) has broadened its range of convertible bond solutions by launching two innovative thematic strategies, one focused on responsible investing and one on the technology sector. UBP has EUR 1.7 billion worth of assets under management in convertible bonds and expertise in the asset class dating back to 1999. With these launches, the bank is reaffirming its lasting conviction on convertibles, while also showing its commitment to innovation and sustainable finance.
Committed to sustainability
The aim with the Global Sustainable Convertible Bond strategy is to give investors access to the benefits of global convertible bonds, in particular their convex risk–return profile compared to equities, within a sustainable investment framework. This means the security selection process integrates strict environmental, social and governance (ESG) criteria and proprietary extra-financial analysis. The process covers the specific features of this hybrid asset class and considerations that can have a significant impact on companies’ results, such as climate change. On the financial side, the strategy applies UBP’s tried and tested convertible bond approach based on fundamental analysis focusing on issuers’ credit quality and on underlying companies’ medium- to long-term growth prospects.
“UBP is something of a pioneer in responsible convertible bond investing, having launched its first such strategy in Europe some ten years ago,” said Marc Basselier, Head of Convertible Bonds at UBP.
“This new solution with a global scope reflects our commitment to sustainable investing. There is no doubt in our minds that companies that integrate ESG opportunities and risks into their strategies are in a better position to generate strong growth over the long term.”
Thematic innovation
The Global Tech Convertible Bond strategy invests in convertible bonds in the global technology sector. Its purpose is to capitalise on the convex nature of convertibles by offering investors opportunities in the tech sector with lower volatility than those companies’ equities would offer. The solution is based on a quantitative approach without selection bias and its allocation focuses on convexity and liquidity.
According to Marc Basselier, “firms in the tech sector have high exposure to secular trends such as the digitalisation of the economy and health care innovation, which makes them a very attractive investment. The tech convertibles universe is a particularly deep and dynamic one offering a growing opportunity set.”
Commenting on these launches, Nicolas Faller, UBP's Co-CEO Asset Management and Head of Institutional Sales, stated:
“Both these strategies demonstrate UBP’s ambition for innovation and its ability to devise sustainable investment solutions in non-traditional asset classes. Convertibles are a key part of our offering and we intend to keep developing in that segment to remain ahead of the curve and maintain a flow of cutting-edge strategies.”
Both solutions are managed by UBP’s Convertible Bonds team based in Paris, comprising five managers and a track record of over twenty years in the asset class, under the leadership of Marc Basselier. They will be available in Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Portugal, Singapore, Spain, Switzerland, and the United Kingdom.