Harvest – Global Convertible

Harvest Investment Fund – Global Convertible, is a global convertible bond fund. The fund was launched in 2009; it is sponsored by a Luxembourg bank and a Swiss private manager, and they ensure its sustainability. The management team is skilled, with more than ten years of experience. Convertible bonds are a class of assets in their own right, sharing the characteristics at the same time of bonds (maturity, coupon, etc.) and shares (participating in the upside and downside of the security). The attraction with convertible bonds for a “share” investor lies in assuming a lesser risk than investing directly in the share, by benefiting from the bond floor but by paying a premium in relation to the price of the share on the markets. For a “bond” investor, the attraction lies in benefiting from a part of the rise in the underlying share and thus improving its yield, with the price to pay for this possibility being to receive a lower yield than that of conventional bonds. These characteristics make convertible bonds hybrid (bonds and shares) though also asymmetric (participating in the upside and a lesser participation in the downside) instruments. Historically convertible bonds thus enjoy a performance equivalent to shares with less volatility.