Convertible Bonds – An Investment Solution for Insurance Portfolios

Benefits of Convertibles for Insurance Investors:

Capital Efficiency– Convertibles are treated as bonds for Risk Based Capital charges. They hold up far better than equities during volatile markets.

Diversification– Convertibles have low correlation to Bonds which is a benefit to Bond heavy investments.

Interest Rate Sensitivity– Convertibles perform relatively well when interest rates rise.

Asymmetry– Due to the convex nature of the return profile, convertibles capture most of the upside of the movement of the underlying equity and much less of the downside movement.

Risk Management– Portfolio Risk Exposure can be fine-tuned to meet specified goals.

Investment Grade– We can build a portfolio with an overall investment grade rating if required.

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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.