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New Capital is pleased to announce that Paulus De Vries has joined EFG Asset Management (EFGAM) as co-portfolio manager of the New Capital Global Convertible Bond Fund. Paulus joins Xavier Linsenmaier, who has managed the Fund since launch in December 2019.
Paulus previously worked at DWS Frankfurt as the Global Head of Convertible Bonds where he was the lead fund manager on the DWS Invest Convertibles Fund. Prior to this, he was Managing Director at Jefferies International London, where he was responsible for Institutional convertible bond sales. Paulus has also held roles at Credit Suisse, KBC Financial Products and HSBC.
Paulus joins at an exciting time, with the USD289m (31/12/22, EFGAM) New Capital Global Convertible Bond Fund having reached its three year anniversary. The Fund seeks long-term appreciation and income through capital growth.
The team utilises deep, independent bottom-up due diligence and quantitative screening to optimise convexity. This is supplemented with proactive ESG screening & analysis which is integrated into the research and portfolio management processes. Top down macro analysis is also utilised to further aid risk management. This process results in a concentrated, high conviction portfolio of circa 50 companies. Whilst an all-cap strategy, there is notable exposure to the small-mid cap universe.
Why Global Convertibles?
While convertible bonds are exposed to rising rates and impacted by rotation to value, we believe now, the asset class is better suited to manage the headwinds.
- Convertible bonds have shorter durations than non-convertible debt
- Convertible bond valuations are currently cheap
- Convertible bonds add long term equity volatility to a multi asset allocation
- Straight issuers will use convertible bonds for Refis likely raising IG share.
The value of shares can fall as well as rise as a result of currency fluctuations as well as market movements. Your capital is at risk. Emerging markets may be riskier than developed markets. Concentrated portfolios can increase volatility, small caps are more volatile than large caps.
