Mirabaud Asset Management has launched a SMID-focused global convertible bonds strategy with a fully integrated ESG process.
The strategy, led by Nicolas Cremieux, targets small and mid-cap convertible bond opportunities
The manger will adopt an unconstrained approach across sectors and regions, alongside positions in “off-benchmark opportunities” to build the portfolio of around 50 holdings.
Issuers below $5bn in size within high growth sectors, such as healthcare and technology, are the primary targets as they enjoy lower default rates and offer strong liquidity profiles.
Similar to Mirabaud Asset Management’s other convertible bond offerings, this latest launch has a fully ESG integrated process and is classified as Article 8 under SFDR.
The team uses exclusions and positive selection, alongside active engagement, to assess how corporates are addressing sustainability and climate transition.
Cremieux said: “The convertible bonds asset class is currently in the sweet spot, as companies look to capitalise on the historically low-rate environment to support growth plans. We saw record levels of convertible bond issuance in 2020, and 2021 is on course to match this level.”
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