Man Convertibles Europe

The Man Convertibles Europe strategy is an actively managed, long-only portfolio of European convertible bonds which aims to generate superior returns through capital appreciation and interest income.
  • Concentrated portfolio of approximately 40-60 convertible bonds that offers access to the European convertible bond market with its unique composition of blue chip companies and global market leaders from the medium-size enterprise sector
  • Positioned in the balanced area to provide the highest possible convexity and participate in the upside potential of European equity markets while seeking to reduce downside risk

Convertible bonds offer access to the return potential of equity markets, whilst providing potential downside insulation. The embedded conversion option in a convertible combines the benefits of a debt instrument – fixed coupon payments and the option to redeem at maturity at a pre-specific price – with the ability to participate in the upside potential of the underlying equity.


The key to the strategy’s success is the employment of a well-structured and disciplined top-down/bottom-up investment approach, supported by state-of-the-art systems and a proven risk management process.

Top down

The starting point is a broadly diversified portfolio, which matches the sector allocation of the Thomson Reuters Convertible Europe EUR Index. In the quarterly Man Convertibles Investment Committee meeting, economic and financial market developments are discussed and allocation weights relative to the index decided. This goes as far as doubling or halving the tactical allocation to a sector.

Bottom up

Investments are selected based on their credit profile, the outlook of the underlying equity as well as the technical profile including the structure and features of the convertible bond itself. This selection aims to identify convertibles that are undervalued relative to their fair value and their peers in the investment universe.

This process is supported by

  • A proprietary database of around 750 convertibles that qualify for an investment
  • State-of-the-art proprietary and external models and tools such as FIS’ Monis
  • A dedicated quant analyst assisting with heavy data modelling, including scenario analysis and assessment of key performance drivers
  • A credit specialist assessing credit profiles of new issuers and companies with a weaker credit profile to monitor company credit risk within the strategy

Exposure management

  • Employment of an active approach to managing the overall equity sensitivity of the portfolio that uses CTA-style trend signals to support decisions
  • Implementation is conducted within a well-defined framework of rules, using a combination of shifts between higher and lower-delta convertibles, index futures (only to reduce exposure), and cash holdings
  • All unwanted currency risk is hedged, while a maximum of 20% of total exposure may remain unhedged
Approach Long-only
Asset Class Fixed Income
Geographic Focus Europe
Reference Index Thomson Reuters Convertible Europe EUR Index



Reference Index

Relative Return



















Performance by calendar years







As at 28 February 2023 Inception date 23 November 2000

Past performance is not indicative of future results. Returns may increase or decrease as a result of currency fluctuations.

Please note that the performance data is not intended to represent actual past or simulated past performance of an investment product. The data is calculated in EUR and is based on a representative investment product or products that follow the strategy. An example fee load of 1.50% has been applied. The Thomson Reuters Convertible Europe EUR Index: Merrill Lynch Convertible Europe (VR30) (total return) in EUR until 31.12.2012. Thomson Reuters Convertible Europe EUR Index is selected by the Investment Manager for performance illustration and comparison purposes only. It is not a formal benchmark and does not form part of the Fund’s investment objectives or investment policy.

Investment Solutions

Man offers a comprehensive suite of investment solutions and formats that can be tailored and optimised to meet specific client needs. Our investment solutions offer optionality including: liquidity, control, investment restrictions, investor customisations and transparency.

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Access to investment products and mandate solutions are subject applicable laws and regulations including selling restrictions and licensing requirements. Investment solutions listed above may not be compatible for all investment strategies and may be subject to minimum subscription requirements. Regional Funds: In additions to UCITS and AIFs registered across the EEA, a number of investment strategies are available in vehicles registered in Chile, Netherlands, Hong Kong, Japan, Singapore, South Korea and Switzerland.


For a summary of investor rights please see and for guidelines for individual or collective redress mechanisms, please consult the fund’s prospectus and its key information document, as well as the complaints handling policy found here

One should carefully consider the risks associated with investing, whether the strategy suits your investment requirements and whether you have sufficient resources to bear any losses which may result from an investment:

Investment Objective Risk - There is no guarantee that the Strategy will achieve its investment objective.

Market Risk - The Strategy is subject to normal market fluctuations and the risks associated with investing in international securities markets and therefore the value of your investment and the income from it may rise as well as fall and you may not get back the amount originally invested.

Counterparty Risk - The Strategy will be exposed to credit risk on counterparties with which it trades in relation to on-exchange traded instruments such as futures and options and where applicable, ‘over-the- counter’("OTC","non-exchange") transactions. OTC instruments may also be less liquid and are not afforded the same protections that may apply to participants trading instruments on an organised exchange.

Currency Risk - The value of investments designated in another currency may rise and fall due to exchange rate fluctuations. Adverse movements in currency exchange rates may result in a decrease in return and a loss of capital. It may not be possible or practicable to successfully hedge against the currency risk exposure in all circumstances.

Liquidity Risk - The Strategy may make investments or hold trading positions in markets that are volatile and which may become illiquid. Timely and cost efficient sale of trading positions can be impaired by decreased trading volume and/or increased price volatility..

Financial Derivatives - The Strategy will invest financial derivative instruments ("FDI") (instruments whose prices are dependent on one or more underlying asset) to achieve its investment objective. The use of FDI involves additional risks such as high sensitivity to price movements of the asset on which it is based. The extensive use of FDI may significantly multiply the gains or losses.

Leverage - The Strategy's use of FDI may result in increased leverage which may lead to significant losses.

Emerging Markets - The Strategy may invest a significant proportion of its assets in securities with exposure to emerging markets which involve additional risks relating to matters such as the illiquidity of securities and the potentially volatile nature of markets not typically associated with investing in other more established economies or markets.

Non-Investment Grade Securities - The Strategy may invest a significant proportion of its assets in non-investment grade securities (such as “high yield” securities) are considered higher risk investments that may cause income and principal losses for the Strategy. They are instruments which credit agencies have given a rating which indicates a higher risk of default. The market values for high yield bonds and other instruments tend to be volatile and they are less liquid than investment grade securities.

Single Region/Country Risk - The Strategy is a specialist country-specific Strategy or focuses on a particular geographic region, the investment carries greater risk than a more internationally diversified portfolio.