Strategic Convertibles Fund (WSCIX)

Investment Strategy

  • Seeks to provide equity-like returns with lower volatility through a disciplined investment process
  • Is actively managed, utilizing both a top-down and bottom-up investment process
  • Typically invests in 60 to 90 convertible securities with attractive valuations, with a goal of maintaining a delta range between 30 and 80
  • Seeks to provide a fully invested portfolio that is diversified among regions and sectors
  • Manages risk by utilizing a sophisticated convertible analytics system and conducts a formal review, on a monthly basis, with an independent risk management team responsible for monitoring overall portfolio risks using a state-of-the-art system

Potential Investor Benefits

Asymmetric Advantage

Combination of current income, equity, credit, volatility capture and pricing anomalies can offer unique opportunities in a low-rate, modest growth environment with persistent market volatility.

Low Volatility

Low volatility with two-thirds equity market risk can improve risk-adjusted returns for equity investors seeking risk-managed growth.

Higher Risk-Adjusted Returns

Asymmetric risk-reward profile for investors seeking an edge in the current market environment aiming to improve portfolio efficiency.

Attractive Diversification Benefits

Potential complement to global equity and investment grade credit with the potential for competitive returns, lower volatility and less exposure to interest rate fluctuations.

Objective

The investment objective of the Westwood Strategic Convertibles Fund is to seek to provide total return through a combination of capital appreciation and current income.

Fund Facts

Ticker Symbol WSCIX
Fund Inception May 1, 2015
Total Holdings (as of 12/31/2016) 54
Expense Ratio (net) * 0.85%
Expense Ratio (gross) 2.48%
Benchmark Thomson Reuters US Focus Convertible Bond Index
CUSIP 00769G246
Distribution Frequency Quarterly

* The Advisor has contractually agreed to waive fees and reimburse expenses until February 28, 2018. In the absence of current fee waivers, total return and yield would be reduced.

Read more on Westwood's Investment Process

An Emphasis on Low Volatility and Loss Limitation

We believe global convertibles can be viewed as a low-volatility equity allocation for investors seeking more consistent returns and to limit downside risk during periods of market volatility. We believe the global convertible market is an asset class that should be actively managed by an experienced team to capture the inherent inefficiencies within the asset class. We believe both a global and unconstrained approach to investing in convertibles is important for investors seeking to maximize the benefits of the asset class.

Key Differentiators

Dedicated Convertibles Team.

Our team has over 60 years of combined experience in convertible bonds, options, equity and credit analysis. The team is dedicated to the asset class and has developed expertise within their field.

Experienced Team with a Long Track Record of Managing Convertible Bonds

David Clott, CFA, and Shawn Mato, CFA, portfolio managers of the Strategic Global Convertibles strategy, who lead the team, have worked together for over 14 years.

Global Coverage

Our process allows us to invest globally and allocate funds to the most attractive opportunities. A global approach to asset allocation can add significant value; it allows assets to be allocated to the most attractive markets.

World-Class Investment Research Support

Our team has access to, and the support of, investment research generated by Westwood’s U.S. Value and Global and Emerging Markets equity teams. This access provides additional, in-depth analysis on securities held or considered for purchase. In addition, we have an investment analyst dedicated to further analyzing specific global convertible securities.

Fund Performance (as of 11/17/2017)

  Inception date YTD 2016
WSCIX 5/1/2015 9.44% 0.04%
 

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted.

Click here to view the performance of this fund.

Formerly known as UBS Convertible Indexes, Thomson Reuters Convertible Indices measure the size and performance of the convertibles asset class, and are the most widely used convertible bond benchmark internationally. The Thomson Reuters Convertible Indexes are market capitalization-weighted, total-return indexes. They do not impose any currency, regional or sectoral weights, and do not have a fixed number of constituents.

Delta is the ratio comparing the change in the price of the underlying asset to the corresponding change in the price of a derivative. Sometimes referred to as the "hedge ratio".

The value of a convertible security in which the Fund invests is influenced by changes in interest rates, the credit standing of the issuer and the price of the underlying common stock. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging Markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. The fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses. There can be no assurance that the Portfolio will achieve its stated objectives. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from the differences in generally accepted accounting principles or from social, economic or political instability in other nations.

PORTFOLIO TEAM

We manage the Fund using a team-based system. Ultimately, the entire Portfolio Team is responsible for all aspects of the portfolio.

David B. Clott, CFA

David B. Clott, CFA

Senior Vice President
Portfolio Manager

Shawn J. Mato, CFA

Shawn J. Mato, CFA

Senior Vice President
Portfolio Manager

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