Fisch expands product range with new convertible bond fund

Fisch Asset Management successfully launched a new convertible bond fund at the end of January: The FISCH Convertible Global IG Fund invests in investment grade (IG) rated convertible bonds across the entire asset class spectrum from equity-like to bond-like securities. This provides investors with enhanced return opportunities, while benefiting from the defensive investment attributes typically associated with convertible bonds.

Fisch rounds off its offering through the launch of the FISCH Convertible Global IG Fund to complement the existing FISCH Convertible Global Defensive fund, the firm’s original strategy focusing on the IG segment. The initial product has been in existence since 2009. Both funds are managed by Dr. Klaus Göggelmann, who explains the idea behind the launch: "The main difference between the two funds is the flexibility in the selection of securities. The new fund is able to harness the broad opportunity set contained within the IG segment, which includes securities that are particularly equity-like or bond-like. Compared to the so-called asymmetric or convex area, in which the defensive strategy focuses, we have a much wider universe of securities with very different characteristics at our disposal. Therefore, we aim to achieve a higher return with the FISCH Convertible Global IG Fund than that attainable through purely asymmetric convertible bonds." The broader investment spectrum allows the portfolio manager to tailor investments to the expected economic and market environment. A positive scenario implying rising prices will typically be reflected in an overweight to equity-sensitive convertibles. Conversely, more bond-like investments should reduce the risk of a setback in a difficult environment.

Hanspeter Diem, Head of Sales, explains: "With our new fund, we want to reach investors who mainly wish to invest in large-cap and high-quality companies that are rated investment grade. Compared to similarly structured direct investments in equities, they additionally benefit from the typical downside insulation provided by convertible bonds during correction phases. The fund is also suitable for investors who want to participate in the opportunities that equity markets offer but have already exhausted a large part of their risk quota via other investments."

The FISCH Convertible Global IG Fund was launched on 29 January 2021 and is registered for sale in Switzerland, Germany, Austria, Luxembourg, France, Italy, Belgium and the Netherlands. Currency hedged share classes are available in CHF, EUR and USD. The fund was launched as a sub-fund of the FISCH Umbrella Fund, a Luxembourg SICAV under UCITS regulation. In addition to the two IG strategies, Fisch Asset Management offers "opportunistic" (with a focus on convex issues) and "dynamic" (without restriction) variants as well as a strategy with a sustainable focus. All funds benefit from the expertise of one of the world's largest and most experienced convertible bond investment teams. Fisch Asset Management currently manages client assets in convertible bonds of around EUR 5 billion.