After a stellar 2020 when convertible bonds returned 46.2%1(as measured by the ICE BofA All US convertible Index – VXA0) and outperformed the S&P 500 by more than 25%, the asset class had a more modest 2021. In 2021, the VXA0 returned 6.34%, which outperformed most fixed income indices but underperformed most equity indices as shown in the PDF below:
This paper delves into how bonds may not be as effective as expected in safeguarding
SSI reviews the market trends that shaped the first half of 2023, while also providing
1 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.
