UK-based investment management firm Polar Capital is planning to launch a new UCITS global convertibles fund.
The new offering, dubbed Polar Capital Global Convertibles fund, will be domiciled in Dublin, Ireland after securing regulatory approval.
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The fund will be managed by David Keetley and Steve McCormick, who currently run the Polar Capital ALVA Global Convertible hedge fund, which is domiciled in the Cayman Islands.
Polar Capital Global Convertibles fund will concentrate on bonds which provide an income of 3% yield or more, with the portfolio between 40 to 50 positions.
The fund intends to invest between 30% to 60% in both the US and Europe and 20% to 30% in Japan and Asia.
Keetley was quoted by Investment Week as saying that "The idea came about through client demand as they look to move away from the bond market, and gain exposure to convertibles instead.
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By GlobalData"The fund will have higher volatility and more return potential than the existing vehicle," Keetley said.
Launched in November 2010, the existing ALVA Global Convertible Fund has reportedly returned 10.7% in the last year.
