Swiss wealth managerJulius Baer is adding an actively managed global convertible bond fund to its UK product range with the launch of the Julius Baer Global Convert Bond Fund.
 
The Luxembourg-domiciled fund invests exclusively in investment-grade bonds, mainly from developed economies, to maximise capital protection and minimise credit risk.
 
The fund's strategy is divided into two strands, defensive and cyclical/tactical - making it possible to participate in bull markets and outperform in bear markets.

Bruno Knechtle, head of fixed income at Julius Baer, said: "The mass selling of convertible bonds, especially by hedge funds, has created huge opportunities, as many assets are mispriced. Their diversification effect is pronounced as they are not only a combination of equities and bonds, but they also have an option component. The option to convert into the issuer's shares is one of the main performance drivers in volatile markets."