Netherlands-based NN Investment Partners (NN IP) has launched a convertible bond fund.
The company believes that equity return potential with lower downside and low exposure to interest rates make convertible bonds attractive.
The Global Convertible Bond Fund is managed by NN IP’s global convertible strategies team. It has a target annual return of 1% gross outperformance of its benchmark, the Thomson Reuters Global Focus Hedged Convertible Bond Index.
The fund, which is meant to complement NN IP’s Global Convertible Opportunities fund, combines a selection of the most liquid securities in the opportunities fund, with a credit, liquidity and environment, social and governance-driven benchmark selection.
The fund has $1.5 billion (€1.26 billion) in total convertible bond assets under management.
Ivan Nikolov, senior portfolio manager for global convertible strategies at NN IP, said: “Benefitting from equity return participation with reduced volatility and low effective duration, convertible bonds are likely to remain ideally positioned to navigate through the current market environment characterised by tightening monetary policies and volatile equity markets.”
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