2022 Convertible Market Mid-Year Outlook

The first half of 2022 was a difficult period for most asset classes. The S&P 500 had its worst first half return since 19701. Treasury, investment grade, and High Yield bond returns were near historic lows for any first half. It was also a very challenging period for Convertible bonds. After a stellar 2020 when Convertibles returned 46.2% (as measured by the ICE BofA All US Convertible Index–VXA0) and a solid 2021 return of 6.34% (lagging the S&P but ahead of all major fixed income indices), the asset class struggled in 1H’221. This was due to the poor performance of the underlying equities as well as the widening of credit spreads.

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The yearly awards, presented by Envestnet | PMC and Investment Advisor recognize active managers who have beaten their benchmarks, shown solid performance in general over time and are the best in their respective asset class.  Eligibility requires the portfolio manager have $200 million in assets and three years of experience.  Additionally, the managers also need to be open to new investment on the Envestnet platform.  Award finalists were chosen using Envestnet | PMC’s proprietary, systematic, and multi-factor methodology for evaluating managers, which takes a variety of qualitative and quantitative criteria into consideration, such as investment process and style, performance, firm profile, customer service, and tax efficiency. SSI Investment Management did not pay to participate.

Past performance is not necessarily indicative of future results.