DNCA Investments has expanded its international funds range with the launch of a global convertible bond fund, the company has announced.
The DNCA Invest Global Convertibles fund was launched on March 2. It will be managed by Citywire + rated Igor de Maack and Félix Heron, who also run the DNCA Invest Convertibles fund, which has a focus on European convertible bonds.
The new fund aims to keep volatility low at around 7% over a time frame of between two and five years. At least 30% of the fund will consist of investment grade convertible bonds and at least 50% of the securities will be denominated in international currencies.
The managers will tap the large US convertible bond universe and use the opportunities provided from the rerating of European and international equity markets. The managers can hedge exchange rate risk on the fund portion denominated in foreign currencies.
Commenting on the launch, de Maack said: ‘Our long-standing conviction built up over a number of years is that this is a highly attractive asset class, and the creation of DNCA Invest Global Convertibles will provide investors with a new way to tap into global growth via this asset class.
'This is with its bond component that keeps volatility under control and the equity component that provides opportunities for medium-term capital appreciation.
‘This fund rounds out our existing range of diversified and patrimonial investments that address today’s crucial concern of declining bond yields.’
The fund is currently registered for sale in Luxembourg, Belgium, the Netherlands, Italy and France.