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*Information below provided for Investment Grade Convertibles and All Qualities Convertibles composites
Inception Date: 10/1/2000 & 6/1/2001
Benchmark: Merrill Lynch Investment Grade Convertible Bond Index & Merrill Lynch All Qualities Convertible Bond Index
Aviva Investors Convertibles Fact Sheet
President, Chief Investment Officer, Portfolio Manager – Inflective Asset Management
Assistant Portfolio Manager - Inflective Asset Management
Aviva Investors, in partnership with its affiliate, Inflective Asset Management, manages two separate convertibles solutions including Investment Grade Convertibles and All Qualities Convertibles. Convertible securities are hybrid securities designed to allow investors to enjoy equity-like upside potential with bond-like downside protection, and to allow investors to benefit from an increasingly volatile environment. The All Qualities Convertible solution encompasses a broader spectrum of securities, targeting bonds from all asset qualities. Both strategies seek to achieve growth through the long term active management of convertible securities whose values are not fully reflected in capital market valuations as measured by internal cash flow analysis.
The convertible market performed very well in the fourth quarter, delivering a 6% return. This ongoing trend upward was driven by increasing risk appetites, underlying stock prices, tightening credit spreads and associated inflows to the strategy. Considering an uncertain recovery trajectory, we remain somewhat defensive in our approach to portfolio construction. We generally favor hard assets, healthcare and energy services and will remain underweight to financials, consumer discretionary and industrials. Any increasing volatility in the market – along with attractive secondary pricing – will make this category appealing in 2010.
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Aviva Investors provides detailed composite information including performance and portfolio characteristics on a quarterly basis. Please follow the link to view this quarter's convertibles fact sheet.
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Aviva Investors seeks to customize investment solutions to the client's objectives, including spread/return objectives, rating agency guidelines and risk parameters. Those objectives are the foundation for our five-phase investment process.
Aviva Investors uses the FTV framework as the cornerstone of our investment process: Fundamentals, Technicals and Valuations.