The management of convertible bonds is the core competency of Schelcher Prince Gestion. Schelcher Prince searches for transactions where the downside and upside risk are not symmetrical and are aligned with its conservative active management style. Convertible or exchangeable bonds are perfect investment instruments to follow such an approach.

We focus on bonds with positive yield that offer (with the exception of special situations), a bond floor in the case of declining stock markets.

Three fundamental concepts define our stock picking:

• Creditanalysis, which allows us to evaluate the solvency of issuers.
• Equity analysis, to assess the potential for upside of the underlying equities.
• Actuarial analysis, to assess the theoretical value of convertible bonds, and on the other hand, to find investment opportunities (hidden options).

Our expertise in managing convertible bonds focuses primarily on the Euro-Zone and Europe.