Investment philosophy:
- Risk Control (strict investment constraints, choice of a benchmark that is simultaneously prudent, diversified and representative of the investment universe).
Positioning of the sub-fund on the most convex segment of the valuation curve, enabling the investor to fully benefit from the interest offered by convertible bonds.
3 sources of added value: selection of convertible bonds with significant growth potential; global management of both equity and bond exposure.
Support from all BNPP AM's specialised resources (strategists, bond analysts and managers, equity analysts and managers).
Appeal to investors
Convertible bonds are hybrid securities combining the characteristics of equities and bonds. Each convertible bond is exchangeable for a predetermined number of shares at certain predetermined dates.
Convertibles give investors exposure to the underlying equity while at the same time providing partial protection against a fall in the share price.
In the event of a sudden fall in the price of the underlying share, the convertible bond becomes less and less sensitive to this price. This is due to the convexity of the value of the convertible bond as a function of the price of the underlying share.
Conversely, the bond becomes increasingly sensitive to the price of the underlying share as the latter rises..
This structural advantage provided by the convexity of the evaluation profile is of particular interest when equity markets become uncertain or volatile.
The team is headed by Eric Bouthillier, manager of the BNPP AM convertible bond sub-funds for more than 10 years. He is assisted by two Paris-based analysts, one manager based in Hong Kong and one Paris-based product specialist, all of whom have extensive experience in this field.
