Apostle to distribute convertible bond product
Apostle Asset Management will act as the distributor for California-based specialist convertible bond manager, Camden Asset Management.
Formalisation of the distribution partnership was confirmed this week by Apostle managing director Karyn West, who said the company had been seeking products for the Australian market offering lower volatility, liquidity and good excess returns.
"Convertible bonds are often overlooked, and can be an orphan in portfolio management. Because of a scarcity of specialist management in this space, it creates an opportunity to generate alpha," she said.
Commenting on the distribution arrangement, Camden managing partner John Wagner said he believed his company's investment strategies would offer significant benefits that Australian investors would find attractive.
For her part, West said convertibles offered a good investment opportunity in the current environment and could play an important role in portfolios.
"They are a permanent piece in the capital structure for corporates and are considered neither bonds nor equity, but hybrid securities with features of both," she said.
"This is a market that shows pricing inefficiency relative to the underlying stock and may be a source of cheap volatility to exploit."
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