BNY Mellon Investment Management has launched global convertible bond fund that aims to exploit valuation anomalies.
The fund is managed by Insight Investment, which places particular emphasis on risk management strategies, active exposure to fixed income, and multi-asset and absolute return strategies.
It seeks attractive risk-adjusted returns by exploiting valuation anomalies and adding dynamic equity hedges to a portfolio of select convertible bonds. In title selection, management combines a topic-specific top-down approach that takes business cycles and structural changes into account with a detailed sector and company analysis based on the bottom-up principle.
The fund is managed jointly by Frank Campana and James Doolin, both senior portfolio manager at Insight.
Campana said: "Our approach is to take advantage of price differences that convertibles may experience due to equity sensitivity and volatility. We use these differences with a diversified global portfolio of long positions in convertible bonds and dynamic hedges on base shares."
The fund is authorised for distribution in Belgium, Denmark, Germany, Finland, France, Great Britain, Ireland, Italy, Luxembourg, the Netherlands, Norway, Austria, Sweden, Switzerland and Spain and is open to private and professional investors.