- Seeks to provide equity-like returns with lower volatility through a disciplined investment process
- Is actively managed, utilizing both a top-down and bottom-up investment process
- Typically invests in 60 to 90 convertible securities with attractive valuations, with a goal of maintaining a delta range between 30 and 80
- Seeks to provide a fully invested portfolio that is diversified among regions and sectors
- Manages risk by utilizing a sophisticated convertible analytics system and conducts a formal review, on a monthly basis, with an independent risk management team responsible for monitoring overall portfolio risks using a state-of-the-art system
Potential Investor Benefits
Combination of current income, equity, credit, volatility capture and pricing anomalies can offer unique opportunities in a low-rate, modest growth environment with persistent market volatility.
Low volatility with two-thirds equity market risk can improve risk-adjusted returns for equity investors seeking risk-managed growth.
Higher Risk-Adjusted Returns
Asymmetric risk-reward profile for investors seeking an edge in the current market environment aiming to improve portfolio efficiency.
Attractive Diversification Benefits
Potential complement to global equity and investment grade credit with the potential for competitive returns, lower volatility and less exposure to interest rate fluctuations.
An Emphasis on Low Volatility and Loss Limitation
We believe global convertibles can be viewed as a low-volatility equity allocation for investors seeking more consistent returns and to limit downside risk during periods of market volatility. We believe the global convertible market is an asset class that should be actively managed by an experienced team to capture the inherent inefficiencies within the asset class. We believe both a global and unconstrained approach to investing in convertibles is important for investors seeking to maximize the benefits of the asset class.
Peak to Trough Downside Market Capture
(for market periods down >10%)
The down-market capture ratio is a statistical measure of an investment manager’s portfolio or index’s overall performance in down-markets. The down-market capture ratio is used to evaluate how well or poorly an index or investment manager performed relative to an index during periods when that index has dropped.
MSCI World Index - ND is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. Net Dividends (ND) index reinvests dividends after the deduction of withholding taxes, using (for international indexes) a tax rate applicable to non‐resident institutional investors who do not benefit from double taxation treaties. The MSCI World Index consists of the following 23 developed market country indexes: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.
Dedicated Global Convertibles Team.
Our team has over 60 years of combined experience in convertible bonds, options, equity and credit analysis. The team is dedicated to the asset class and has developed expertise within their field.
Experienced Team with a Long Track Record of Managing Global, Convertible Bonds
David Clott, CFA, and Shawn Mato, CFA, portfolio managers of the Strategic Global Convertibles strategy, who lead the team, have worked together for over 14 years.
Our process allows us to invest globally and allocate funds to the most attractive opportunities. A global approach to asset allocation can add significant value; it allows assets to be allocated to the most attractive markets.
World-Class Investment Research Support
Our team has access to, and the support of, investment research generated by Westwood’s U.S. Value and Global and Emerging Markets equity teams. This access provides additional, in-depth analysis on securities held or considered for purchase. In addition, we have an investment analyst dedicated to further analyzing specific global convertible securities.
Fund Performance (as of 4/28/2017)
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted.
Click here to view the performance of this fund.
The benchmark is the Thomson Reuters Global Focus Convertible Bond Index which represents the global convertible asset class, targeting larger convertibles. It is balanced across regions and is limited in number of constituents to ensure breadth and manageability. Net total return indexes reinvest dividends after the deduction of withholding taxes, using (for international indexes) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties.
Delta is the ratio comparing the change in the price of the underlying asset to the corresponding change in the price of a derivative. Sometimes referred to as the "hedge ratio".
The value of a convertible security in which the Fund invests is influenced by changes in interest rates, the credit standing of the issuer and the price of the underlying common stock. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging Markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. The fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses. There can be no assurance that the Portfolio will achieve its stated objectives. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from the differences in generally accepted accounting principles or from social, economic or political instability in other nations.