John Ventre has added convertible bond exposure to the Skandia multi-asset range by buying Renaud Martin’s £151.4m Mirabaud Convertible Bonds Europe fund.
Ventre introduced the holding to the £1.1bn Skandia Diversified fund, £370m Skandia International Growth fund, £200m Skandia International Diversified fund and £14.3m Skandia Alternative Investment fund as well as across the six funds in the Spectrum range.
The Mirabaud Convertible Bonds Europe fund has outperformed its benchmark since its launch in 2011, rising 9.8 per cent over one year against 7.1 per cent against the Citigroup European World Government Bond Index’s total return.
Highlighting the benefits of the asset class, Martin says: “The ability to convert the bond to stock means an investor will benefit from both the income and downside protection inherent in the fixed income portion and profit from any potential price appreciation of the underlying common stock.”
Anthony Gillham, who recently added the Mirabaud fund to his £166.2m Skandia Strategic Bond fund, says convertible bonds have a number of “attractive characteristics”, including diversification and not being capped by low yields.
“Mirabaud has a number of important competitive advantages versus their peers, not least Renaud’s command of stock selection issues across the convertible universe and low level of assets under management in this highly capacity constrained asset class,” he adds.