Spearheaded by experienced portfolio manager Nicolas Crémieux, the new strategy is one of the first of its kind, targeting small and mid-cap convertible bond opportunities around the world. The strategy aims to provide convexity on a permanent basis and consistently display a high active share – reflecting the manager’s unconstrained approach across sectors and regions, alongside a significant position in off-benchmark opportunities.
The portfolio consists of approximately 50 positions, with Crémieux and the team pursuing convertible issuers below $5bn in size within a number of high growth sectors, such as healthcare and technology, which enjoy lower default rates and display strong liquidity profiles.
Mirabaud Asset Management’s convertible bonds team consists of five Paris-based sector specialists, which have more than 60 years of combined experience in the space. The team manages about $1bn across its high conviction convertible bonds strategies.
Similar to Mirabaud Asset Management’s other convertible bond offerings, the new strategy has a fully ESG integrated process and is classified as Article 8 under SFDR. The team uses exclusions and positive selection, alongside active engagement, to assess how corporates are addressing sustainability and climate transition. The managers are also fully supported by Mirabaud’s social responsible investment team.
“The convertible bonds asset class is currently in the sweet spot, as companies look to capitalise on the historically low-rate environment to support growth plans. We saw record levels of convertible bond issuance in 2020, and 2021 is on course to match this level. As the compelling potential of convertible bonds increasingly appeals to clients, our new strategy is perfectly placed to capture many of the exciting opportunities on offer in the space.”Nicolas Cremieux, Co-head of Convertible Bonds at Mirabaud Asset Management
“While convertible bonds offer performance close to equities over the long term, with far lower levels of volatility, this area of the market has been relatively overlooked until recently. Drawing on the decades of experience our team has at the forefront of this asset class, we are excited to be able to extend our suite of strategies into the high growth small and mid-cap space.”Lionel Aeschlimann, managing partner of the Mirabaud Group and CEO of Mirabaud Asset Management