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Convertible Bonds

Mirabaud - Convertibles Global A dist. USD

Overview 

Risk Indicator 

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Mirabaud - Convertibles Global A dist. USD

Investment overview

A high-conviction, highly active strategy investing in global convertible bonds targeting 50 best ideas, with the top-20 positions representing around 60% of the portfolio. We only invest in 'pure' convertibles (no synthetic securities) and only use hedging to manage currency risk. Extensive fundamental analysis of balance sheet strength and potential equity upside is combined with full ESG integration. Shadow ratings using Moody’s methodology is used for unrated credits. This approach helps us to find hidden value and minimise default risk.

Approach to sustainability

We favour a materiality-driven approach to sustainable investing, along with an assessment of ESG practices. We encourage disclosure and transparency, and avoid governance malpractices. We follow a three-step process: 1. Exclusion and/or restriction of companies operating in controversial sectors, as well as companies involved in recent major controversies and UNGC Breaches; 2. Positive screening - aiming to minimise downside risk of the portfolio by excluding the companies with the lowest ESG scores. As a result of the combined application of negative, normative and positive screening, the investment universe is reduced by 30%; 3. In-depth analysis of material ESG issues for the weakest companies, along with ongoing engagement.

Mirabaud - Convertibles Global A dist. USD

Fund information

Luxembourg

SICAV

Daily

Daily / Daily

0 Business Day / 2 Business Days

0 Business Day / 2 Business Days

04/04/2016

USD

LU0972400278

FTSE Global Focus CB hedged USD

Bank Pictet & Cie (Europe) AG, Succursale de Luxembourg

Deloitte Audit Sarl

FundPartner Solutions (Europe) SA

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Mirabaud - Convertibles Global A dist. USD

Documents

Mirabaud - Convertibles Global A dist. USD

Performance & risk

  • Mirabaud - Convertibles Global A dist. USD

  • FTSE Global Focus CB hedged USD

    NAV adjusted in case of distribution

  • Source: Mirabaud Asset Management. Share class and benchmark performance displayed in USD. The return of your investment may increase or decrease as a result of currency fluctuations if your investment is made in a currency other than that used in the past performance calculation. The Fund is actively managed. The benchmark is shown for comparison purposes and as part of the computation of the performance fees, without implying any particular constraints to the Fund’s investments. Any entry, exit and other charges, commissions or fees, if applied, are excluded from the calculation. Past performance does not predict future returns.

Performance 

Cumulative

Annualized

Risk

Volatility

Correlation

Please note that the frequency of returns used in the above calculations may be different than the one used in the official reporting documents and results may vary accordingly.

Past performance is not indicative or a guarantee of future returns. Performance figures do not take into account subscription and redemption fees that might be levied. The sources of the information displayed are deemed reliable. However, the accuracy or completeness of the information displayed cannot be guaranteed, and some figures are only estimates.

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Mirabaud - Convertibles Global A dist. USD

Monthly commentary

Performance update

 

June was anything but a quiet start to the summer, with investors climbing the wall of worry once again. June finished with no new trade deals inked ahead of the end of the 90-day pause. The Federal Reserve tested the market with the idea of early rate cuts, with Waller/Bowman being the first mouthpieces to speak while Powell reiterated his watch-and-wait stance. The Israel/Iran war concluded after a ceasefire was announced following 12 days of exchanged strikes. Despite all this volatility, global equities printed new highs while credit crept tighter, the US dollar moved lower and the VIX fell below 17.

Convertible bonds' underlying equities significantly outperformed broad global equity indices, while convertibles lagged their delta-implied moves, capturing 43% of the positive performance of their underlying equities, mainly due to softening valuations on the back of a deluge of new issues. From a regional perspective, on an absolute basis, every region except for EMEA contributed to performance, with the US and APAC leading. From a sector standpoint, IT, financials and industrials were the main positive contributors on an absolute basis, while consumer discretionary, healthcare and utilities detracted. At the security level, the leading relative contributors were Fortuna Mining 3.75% 30/06/2029, Grab 0% 15/06/2030 and Wisdomtree 3.25% 3.25% 15/08/2029. The main relative detractors were Echostar 3.875% 30/11/2030, MP Materials 3% 01/03/2030 and Spotify 0% 15/03/2026.

 

Portfolio activity

 

During the month, we exited Digital Realty Trust 1.875% 15/11/2029, Snowflake 0% 01/10/2029, Guidewire 1.25% 01/11/2029 and Alphawave 3.75% 01/03/2030. We initiated new positions in the primary market on Grab 0% 15/06/2030, SF Holdings 0% 08/07/2026, Shoucheng 0.75% 07/07/2026, Chow Tai Fook 0.375% 30/06/2030, Cyberark 0% 15/06/2030 and Golar 2.75% 15/12/2030. We built a new position in the secondary market in Equinox 4.75% 15/10/2028.

Sector-wise, IT represents our largest exposure at 26.68% (3.58% OW), followed by industrials at 17.43% (6.65% OW), consumer discretionary at 16.76% (1.39% OW), financials at 10.42% (1.74% OW), materials at 6.94% (1.53% OW), healthcare at 5.91% (4.54% UW), communication services at 3.98% (1.21% UW), utilities at 2.93% (8.77% UW), and consumer staples at 2.56% (1.64% OW). Geographically, the breakdown is North America at 52.02% (10.39% UW), APAC at 28.64% (11.89% OW), Japan at 9.52% (3.59% OW) and EMEA at 9.36% (5.19% UW).

 

Yearly performances 

Mirabaud - Convertibles Global A dist. USD

Portfolio managers

Nicolas CRÉMIEUX

Head of Convertible Bonds

Nicolas Crémieux, Head of Convertible Bonds at Mirabaud Asset Management, has experience in the portfolio management industry since 2000. Prior to joining Mirabaud Asset Management in August 2013, Nicolas was Head of Convertible Bond Management at Candriam between 2000 and 2013, where he managed two funds, as well as being Head of Technical Analysis. Nicolas Crémieux is a Certified European Financial Analyst Charterholder (EFFAS) and holds a Master's Degree in Finance and a Master's degree in Insurance and Risk Management from the University of Paris Dauphine.

Benjamin BARRETAUD

Portfolio Manager

Benjamin Barretaud is Deputy Portfolio Manager for Mirabaud – Sustainable Convertibles Global. Benjamin joined Mirabaud Asset Management in 2022 having previously worked as a Global Convertible Bonds Portfolio Manager at Union Bancaire Privée (2015-2022). He started his career on the Convertible Bonds trading desk at BNP Paribas Asset Management in 2014. Benjamin Barretaud holds a Master’s degree in Financial Engineering from the University of Paris X.