F&C Global Convertible Bond Fund wins Lipper Award
F&C Global Convertible Bond Fund, one of F&C's flagship SICAV funds, has been granted an award by ratings agency Lipper.
The Fund was named as best fund in the Global Convertible Bond category over 5 years in the Netherlands, during a ceremony in Amsterdam.
Launched in 2003, the F&C Global Convertible Bond Fund invests in a portfolio of balanced convertibles that will participate in the upward appreciation of the underlying equity, while at the same time offering a degree of downside protection should the underlying equity fall.
The portfolio is managed by F&C's Amsterdam-based Global Convertible Bond team. Headed by Anja Eijking, the team has been managing convertibles since 1998 via a Dutch pooled fund, having hands-on experience of managing money across a range of economic and investment conditions. The team consists of three Senior Portfolio Managers and a dedicated Portfolio Marketing Manager, with an average of 17 years' investment experience.
The F&C Global Convertible Bond Fund ended 2009 with a 12-month performance of 34.3%, compared with a 25.7% return from the benchmark . The ongoing tightening in credit spreads and the further strengthening in the equity markets have contributed to the performance of convertibles as an asset class. In addition, the primary market also continued to offer attractive investment opportunities.
Anja Eijking, manager of the F&C Global Convertible Bond Fund, commented: "We are very pleased with the performance we have achieved and we are delighted to have received our third Lipper Award since the fund was launched in 2003. It reaffirms our belief in our investment style. We navigated the challenging market conditions during the credit crisis well. Our continuous search for compelling investment opportunities to benefit from the attractive risk/reward opportunities that convertible bonds offer, combined with strong stock selection skills, have resulted in strong returns with a reduced risk profile throughout the market cycles."
Raymond Heesakker, co-manager of the fund, added: "Looking ahead, we maintain our cautiously optimistic outlook, expecting a somewhat lower than usual V-shaped recovery, with global growth of around 4.5% for 2010 and earnings growth of 35-40% for the US and Europe. This scenario bodes well for returns from convertible bonds. New issuance across companies, sectors and regions is set to continue, providing attractive opportunities to participate in the further recovery potential of the equity market in a risk-adjusted manner."