H.A.M. Funds offer different risk profiles with a corresponding potential

Fund Products

H.A.M. Funds offer different risk profiles with a corresponding potential

Convertible bonds portfolio

Attractive alternative as a portfolio component: Participation in rising equity markets and profit from downside protection.

By investing in H.A.M. Convertible Bond Funds investors can profit from higher risk adjusted returns by means of an actively mangaged convertible bond portfolio. The portfolio participates in rising equity markets and has a limited downside risk. Convertible bonds rebalance themselves over the course of an economic cycle. As a consequence, timing decisions when to enter or exit the market do not play a major role.

What are convertibles?

Convertibles have the characteristics of a fixed income investment. The investor achieves regular interest income and receives his capital repayment at maturity. The special feature of these investment vehicles lies in the built-in option to convert the bonds into a predetermined number of a particular company’s shares. As a result of this built-in option, convertibles behave partly as bonds and partly as shares. Whenever it becomes advantageous for the investor to exercise his right to convert, the value of the convertible will be determined primarily by the developments of the underlying share price. When conversion is not advantageous, the investor shall not exercise his right and will rather accept the repayment of the principal. 

Why invest in convertibles?

As opposed to regular bonds, convertibles can deliver a positive performance even in times of rising inflation and resulting falling bond prices. Although convertibles also suffer in these conditions, the investor has the possibility to profit from the increase in value of the underlying stock. The combination of the long term growth potential of equity and the capital protection through the promise of repayment of the bond principal is one of the reasons why convertibles are increasingly used in portfolios of institutional investors. 

Superior long term performance and automatic rebalancing

Empirical studies show an interesting result: in times of falling equity markets, the return of a convertible bond exhibits a high correlation to a traditional fixed income investment. In times of rising equity markets, convertibles come closer to an equity investment. An inclusion of convertible bonds in a global asset allocation has historically yielded higher returns and lowered the risk profile.

Any questions?

Contact us.
We are happy to advise you.

Tel +41 43 817 70 20


Subscriptions details

H.A.M. Global Convertible Bond Fund - ISIN

EUR: LI0010404585
USD: LI0028897788
CHF: LI0045967341
GBP: LI0364737259

Liechtensteinische Landesbank AG
Fund Desk
Tel +423 236-8148


H.A.M. Global Convertible Bond Fund

The H.A.M. Global Convertible Bond Fund is a global convertible bond fund which does not use leverage, nor systematically hedges investment instruments. By definition, it is clearly a “long-only” and not a “hedge fund”. The investment universe is global. The fund aims to reach its investment objective by investing in undervalued convertible bonds.

Publications (Key figures, Performance, Tax data etc.) about the H.A.M. Global Convertible Bond Fund can be found here:

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