New Capital Global Convertible Bond Fund five year anniversary

The Fund is managed by Portfolio Managers Xavier Linsenmaier and Paulus de Vries, working together with Client Portfolio Manager Martin Haycock, each bringing more than 25 years’ experience in the convertible bond market. The convertible team is supported by the wider EFGAM Equity and Fixed Income teams, ESG analysts, and macro research colleagues, delivering a proprietary investment approach seeking to maximise the convexity offered by convertible bonds. The team take a highly active approach – investing globally in convertible bonds with a focus on credit, convexity and equity conviction to achieve a concentrated yet diversified portfolio.

Xavier Linsenmaier commented, “Our systematic approach allows us to build a portfolio with convexity, aiming to deliver greater upside in rising markets than it loses in weak markets. We believe the benefits of convertible bonds, paired with our investment process, provides our clients with a vehicle to navigate the uncertainty of markets in 2025 and beyond."

In the past year (to end November 2024) the Fund has returned more than 13% and, since inception, the Fund has outperformed its benchmark - the FTSE Global Focus Hedged Convertible Index (USD) - by +180ps after fees. Over more than 20 years, convertible bonds have delivered comparable returns to their underlying shares, with less than half the volatility.

Justin McKie, Head of New Capital commented, “There are compelling reasons why now is an interesting time to invest in Convertible bonds and as the vastly experienced team are demonstrating, we believe we have a world class investment proposition."

Past performance is not a guide to the future.

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