Convertible Bonds
Mirabaud Discovery Convertibles Global Strategy
A high-conviction, highly active strategy investing in global convertible bonds targeting 50 best ideas at all times, with the top-20 positions representing around 60% of the portfolio.
We focus on small and mid-cap issuers, looking for 'tomorrow's winners', including young, innovative companies and disrupters with strong growth drivers and attractive valuations.
Extensive fundamental analysis of balance sheet strength and potential equity upside is combined with full ESG integration. Shadow ratings using Moody’s methodology is used for unrated credits. This approach helps us to find hidden value and minimise default risk.
Strategy highlights
UNIQUE SMALL & MID-CAP FOCUS
- Selects global convertible bond issuers below USd5bn in size
- Access to around 500 issues representing close to 50% of the total global convertibles universe
- These companies are often not represented in core benchmarks
- Mid-cap convertibles have outperformed the broader market over 10 years
FINDING WINNERS OF TOMORROW
- Access to a diversified range of ‘light debt’ companies in interesting market niches and high growth sectors
- Focus on young and innovative companies before they become widely recognised
- Targeting disrupters, which exhibit strong growth drivers, fundamentals and attractive valuations
ACTIVE ESG APPROACH
- Fully integrated ESG approach, SFDR Article 8
- Unconstrained approach across sectors and regions, alongside off-benchmark opportunities
- Searching for convexity delta target between 30 and 60% and a minimum exposure of 60% in balanced profiles
Strategy resources
Fund Information
Monthly Reporting
Monthly Commentary
As the compelling potential of convertible bonds increasingly appeals to clients, our discovery strategy is perfectly placed to capture many of the exciting opportunities on offer in the space
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Asset management
Benjamin CARTER
Head of UK Wholesale