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Fisch Asset Management is expanding its range of convertible bond funds. The newly launched FISCH CB Global Dynamic Fund features a very broad range of instruments, allowing it to exploit the potential of the entire convertible bond universe. Investors enjoy higher potential return with the security typical of convertible bonds.
This new product is a conscious move by Fisch to take a more offensive positioning than it has with its current range of investment funds. As explained by CEO Philipp Good, “We are primarily looking to reach equity investors who want a greater degree of security without sacrificing potential for return. Convertible bonds can keep up with equity markets long term, but with lower volatility. The current environment of rising interest rates and volatile equity markets plays to their strengths. This is because they offer downside protection thanks to their bond component, but also allow for unlimited participation in the upside potential offered by equity markets. Our new fund – with maximum flexibility – centres on this compelling combination.”
The FISCH CB Global Dynamic Fund is managed by Ute Heyward and Filip Adamec. Ute Heyward serves as portfolio manager of the FISCH CB Global Opportunistic Fund. A former high yield analyst, Filip Adamec brings additional expertise in credit analysis. “The FISCH CB Global Dynamic Fund uses the opportunities presented by the whole convertible bond universe. In particular, this includes equity and bond-like securities that are often somewhat overlooked by market participants, and thus tend to have lower valuations. Our many years of collective experience allow us best to identify such opportunities,” Ute Heyward explains.
The managers use the broader bond spectrum to adapt the portfolio optimally for the anticipated economic and market environment. A positive outlook generally leads to an overweight in securities with a higher delta to participate in the upside trend. In a difficult or unstable environment, bond-like convertible bonds help reduce downside risk.
The FISCH CB Global Dynamic Fund was launched on 31 May 2018 and is authorised for distribution in Switzerland, Germany, Austria, Luxembourg, France, Italy, Belgium and the Netherlands. The fund is intended for institutional investors and has three accumulation unit classes in EUR, USD and CHF. The tranches are currency hedged and there is an annual 0.75% management fee for each. The fund is a sub-fund of the FISCH Umbrella Fund, which is a Luxembourg SICAV (UCITS V). With this new product, Fisch Asset Management now offers investors a total of four convertible bond strategies: defensive, opportunistic, dynamic and sustainable. All funds benefit from the expertise of one of the largest and most experienced convertible bond investment teams worldwide. Fisch Asset Management currently manages more than CHF 5.5 billion in convertible bond assets.