In this edition of 'Selector Snapshot', one investment professional reveals his best bet in the sector.
Selector: Hanspeter Kellenberger
Company: Cat Financial (Zurich)
At the moment we are looking at convertible bond funds due to the defensive construction and also as an alternative to other plain bond funds.
We are really focusing on this sector at the moment as we think the market is quite high, so we are waiting for a correction before we focus on other asset classes.
One fund we like is the MRB Convertible Bonds fund. It has a very low level of volatility which is about 3% over the year. There are funds with higher yields than this one but we like to keep the volatility low, which is why we like this strategy.
Challenges and trends
We always have the same challenges in that you have to find a fund, get to know the manager and analyse it which we do ourselves.
Some trends we are seeing at the moment from clients are in sectors such as e-mobility, energy efficiency and renewable energy.
It seems that themes are coming back again after some years of corrections. It’s possibly a place we could look in the future as our clients are quite focused on ESG.
We are looking at every sector at the moment, at the beginning of the year we were very cautious especially on banks, which is where we stayed neutral. Now we are more positive and have no negative views on any one given sector.