Williams de Broe has added the MPC global convertible bond fund to its Assetmaster balanced and cautious portfolio funds.
The MPC fund invests in a range of global convertible bonds that generate higher returns than conventional bonds but with less risk than equities. They pay a regular fixed income over a set number of years and the initial capital is repaid at maturity, or converted into shares at a predetermined price.
WdB says it has a strong conviction in the MPC team, led by Miles Geldard, as it was successful in using similar strategies at JP Morgan Asset Management.
The cautious and balanced portfolio funds have just received A ratings from Standard & Poor’s.
WdB investment director Laurence Boyle says: “We own the MPC fund because it is trying to capture the upside potential of equities with the downside risk protection of bonds. In simple terms, it is trying to get 70 per cent of the upside of equities and 30 per cent of the downside, which complements our other holdings. We do not think we can expect much more than an A rating for all four Assetmaster funds because they were launched just over three years ago but there is a strong indication of an upgrade if all goes well.”