Swiss wealth manager Julius Baer has launched a convertible bonds fund in collaboration with Liechenstein-based investment boutique EMCore.

The Julius Baer Global Convert Bond Fund invests in convertible bonds worldwide with its strategic focus divided into a defensive and a cyclical/tactical segment.

Through this strategy, Julius Baer believes that the fund has the potential to participate fully in bull markets, while also achieving returns in bear markets and markets which exhibit no clear trend.

According to Julius Baer, convertible bonds provide a useful means of portfolio diversification and prove attractive as the bond component offers clients the prospect of capital repayment, while the conversion right allows the investor to also participate in the equities market.

Boutique firm EMCore specialises in the management of convertible bond portfolios and risk management, having some SFr 3.5 billion ($3.1 billion) in institutional assets under management.

EMCore’s investment process utilizes a proprietary risk management system to constantly monitor the fund’s risk profile.  The fund is also focused mainly on investment-grade paper to further minimize risk.

Julius Baer has also recently added the Absolute Return Bond Fund Defender to its Absolute Return Bond Fund range for the UK market, an addition which the firm believes addresses investors’ current desire for reduced risk and comparatively very stable returns.

Headquartered in Zurich, Julius Baer provides private banking and wealth management across 30 locations in Europe, North America, Latin America and Asia.  Julius Baer has a worldwide staff of more than 4,200 and at 30 June 2008 the group’s assets under management stood at SFr 360 billion ($321 billion).