MFM Global Convertible Bonds

Fund strategy

MFM Global Convertible Bonds in CHF, EUR and USD are part of the MFM Fund (Lux) umbrella fund. The MFM Global Convertible Bonds sub-fund was launched in 2003 with as objective to provide investors with an exposure to the convexity of the high-end credit quality convertible bonds market through a conservative long-only strategy. It is actively managed in order to seek capital protection in adverse market conditions and to generate consistent asymmetric returns over a whole economic cycle, with a low volatility and minimum drawdowns. It invests in a portfolio of global vanilla convertible bonds that exhibit a balanced profile, but with a defensive bias towards their bond floor and consequently an average equity sensitivity target with a skew towards low deltas.
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The risk level was calculated based on historical data and is not an indicator of future risk.

Monthly Comment

What happened
Economic fundamentals continued to deteriorate in the early fall. The manufacturing sector, in particular, experienced a severe contraction. The services sector however, continues to support the economy in most regions, as a globally robust labour market sustains healthy consumer spending. The first signs of a weakening of the service sector have popped up recently. Therefore, consumer sentiment is one of the most critical indicators in the short-term. In this environment, the outlook for global growth continues to be revised downward. Concurrently, the risk of a recession continues to increase.
Inflation, which remains strangely moderate, has allowed central bankers to implement accommodating policies. These policies reduce the...
Cédric Membrez

Portfolio Manager

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Serge Fournier

Portfolio Manager

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Giuseppe Mirante

Founder – CEO
Head of Convertible Bonds

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