Schroder ISF Asian Convertible Bond has reached $100 million in assets under management, following the collaboration with Fisch Asset Management announced in November 2007.
"Investors are beginning to recognise the exciting opportunity offered by Asian convertibles, a market that we believe will double over the next five years," said Kurt Fisch, Founder and Head of Investment at Fisch Asset Management.
Schroder ISF Asian Convertible Bond invests in Asian corporate bonds that have an option to convert into shares at a given price. This ability to convert allows the investor to benefit directly from the company's success should its share price rise, while also offering the regular income of a conventional corporate bond investment.
Kurt Fisch, Founder and Head of Investment at Fisch Asset Management, commented, "With strong balance sheet fundamentals and structural growth trends in consumption and investment, the longer term growth dynamics for Asia remain very attractive. We believe regional economic growth will continue to be underpinned by increasing populations and accelerating income growth. We also expect continued urbanisation to pave the way for a more diversified economy and a slow but successful transition from what remains primarily an export driven model."
He added, "Asian convertibles are well placed to take advantage of this potential upside. Their unique short duration fixed income structure combined with very cheap long dated options remains an ideal way to play Asian growth defensively. At current prices, investors are effectively being paid to wait and see if Asian growth materialises. In other words, we believe the fund offers green shoots with protection. In 25 years of investing in convertibles, I have rarely seen such an exciting potential investment opportunity."
Alan Brown, Schroders CIO, said, "Reaching $100 million in assets for Schroder ISF Asian Convertible Bond represents a significant milestone in our collaboration with Fisch Asset Management. We look forward to the continued growth not only of the funds but also our relationship as we harness the strengths of both organisations to continue to develop a market leading convertibles capability."
Schroder ISF Asian Convertible Bond is managed by Schroders and Fisch Asset Management. This unconstrained Asian fund benefits from Fisch Asset Management's strong track record in managing convertible bonds with Schroders' experience in asset allocation and Asian credit analysis.
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