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
Fears about the spread of the coronavirus epidemic, covid-19, shook the financial markets to the core. After anticipating that the economic impact of the epidemic would be confined to China and the supply chains that depend on Chinese production, investors repositioned themselves. They fear a weakening of corporate profits and a significant slowdown in global growth. Stocks endured one of their most significant declines since the financial crisis of 2008, with many indices losing more than 10% in less than a week. This meaningful correction was surprisingly rapid.
In this complicated environment, and even without a strong spread widenings in the credit side, the behaviour of convertible bonds was exemplary compared to other asset...
Giuseppe Mirante

Founder – CEO
Head of Convertible Bonds

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Serge Fournier

Portfolio Manager

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