Westwood Management Corp. offers our Strategic Global Convertibles investment strategy within a UCITS (Undertakings for Collective Investment in Transferable Securities) fund vehicle. Westwood's Global Convertible Securities team serves as the fund’s Investment Manager.

The Westwood Strategic Global Convertibles Fund is actively managed, utilizing both a top-down and bottom-up investment process. The Fund invests in 60-90 convertible securities with attractive valuations, with a goal of maintaining a delta range between 30 and 80. The strategy maintains a fully invested portfolio that is diversified among regions and sectors.  The strategy controls risk by using a sophisticated convertible analytics system, KYNEX, as well as employing an independent risk management team that conducts a formal review on a monthly basis.

Investment Objective

The objective of the Fund is to provide equity-like returns with lower volatility through a disciplined investment process. The strategy looks to achieve 2% excess return above the Thomson Reuters Global Focus Convertible Bond Index on an annualized basis over a full market cycle.

Investment Process

The fund combines a top-down and bottom-up approach to investment management. The process:

  1. Incorporates regional and asset allocation research that includes economic scenario analysis and asset-return forecasting.
  2. Utilizes screens that embody a focus on liquidity, delta, yield and discount to theoretical value.
  3. Implements fundamental credit and equity analysis of specific investments.
  4. Uses scenario analysis to find potential buy candidates that offer an asymmetric reward/risk return profile.