Privilege Portfolio, the Luxembourg fund range of the Aviva Group, has teamed up with Standard and Poor’s as sponsors of a guide to convertible bonds.
Privilege Portfolio, the Luxembourg fund range of the Aviva Group, has teamed up with Standard and Poor’s as sponsors of a guide to convertible bonds.
The “Guide to Convertibles” will be available from Privilege Portfolio through a dedicated website (http://www.privilege.lu/guide) from 16 December and will initially be published in English and Swedish.
The guide has been independently written by Standard & Poor’s and is aimed primarily at investment professionals who wish to increase their knowledge of this little-known asset class. The attraction of Convertibles for investors is that they provide higher risk-adjusted returns than both equities and fixed interest bonds, with equity-like returns in rising markets and bond-type protection in falling markets.
Commenting on the guide, Robert Woolf, Managing Director, Aviva Funds International Ltd, said: “Convertible Bonds provide a defensive alternative to equities when market conditions are uncertain and subject to high volatility, but the majority of investors are unaware of the advantages that Convertibles offer.
"By sponsoring the S&P Guide to Convertibles, we hope to break down some of the confusion surrounding convertibles so that investors and investment professionals are more informed and can understand the important role they can play in a well balanced investment portfolio.”
The Privilege Portfolio-Global Convertibles Fund was launched in April 2002 and boasts assets under management in excess of EUR 250 million, making it one of the largest global convertibles fund in Europe. Over the first six months from launch, the Privilege Portfolio-Global Convertibles Fund outperformed its benchmark – the UBS Global Focus Index – by 3.5% (source: Bloomberg).
David Clott, manager of the Privilege Portfolio-Global Convertibles Fund at Morley Fund Management’s associate office in Boston, commented: "Convertibles continue to demonstrate their viability with recent performance. Worldwide markets have enjoyed a significant rebound, with a gain of 5.3% for the MSCI Global Equities Index in November. Convertibles compare extremely well on this front, with the UBS Global Focus Index rising 5.4%, outperforming worldwide equities during the month!
"From May 31st of this year, the MSCI has lost 13.9%, while the UBS Global Focus Index is down by 6.1%, which represents only 44% of the downside in equity values. Additionally, over the same six month time period, the Privilege Portfolio-Global Convertibles Fund has participated in only 31% of the fall in the MSCI Global Equities Index, demonstrating the defensive nature of Convertibles in the current volatile market conditions.”
-ends-
For further information:
Stephen Roberts, Head of European Retail Marketing
Tel: +352 40.28.20.319
Fax: +352 40.83.58.319
e-mail: stephenroberts@privilege.lu
GSM: +352 021.265.611
Notes to Editors:
- The value of an investment in the Privilege Portfolio funds can fall as well as rise. The investor may not get back the original amount invested.
- The information contained within this document should not be construed as a recommendation to purchase or sell stocks.
- Privilege Portfolio is the Luxembourg domiciled investment fund of the Aviva Group with 28 sub-funds ranging from lower risk money market and bond funds through international and regional equity funds to more speculative single country and theme funds.
- Morley Fund Management Limited is the Investment Adviser to Privilege Portfolio and is a member of the Norwich Union Marketing Group, members of which are regulated in the UK by the Financial Services Authority for life assurance, pensions and investments. Morley Fund Management Limited is an Aviva company.
- Aviva is the UK's largest insurance group, one of the top- five life insurers in Europe and has substantial positions in other markets around the world. Aviva is the world’s seventh- largest insurer based on worldwide gross written premiums.
- Aviva’s principal business activities are long-term savings, fund management and general insurance, with worldwide premium income and investment sales from ongoing business of more than Ł28 billion, and over Ł200 billion in assets under management at 31 December 2001.