The starting position is paradoxical: the environment for convertible bonds is currently more attractive than it has been since the pandemic. They are outperforming equities and growth issuers in particular – such as Chinese Blue Chips – are benefiting from the increasing market breadth beyond the «Magnificent Seven».

The segment remains challenging to trade. In recent years, traditional bonds and equities have dominated the market, leaving institutional investors with few compelling reasons to invest in convertibles. However, rising interest rates, volatile equity markets, and increased issuance are now helping the asset class regain relevance.

Corp Bonds as a Turnover Driver

Fisch Asset Management, the fixed income specialist based in Zurich Seefeld, has also felt the headwinds of recent years. The response to this was to reduce the management team from eight to three members and at the same time set up a dedicated portfolio management board, strengthen its presence in Germany and focus the business more strongly on corporate bonds.

The reorganization should soon take effect. Fisch Asset Management is back on track, including in the area of corporate bonds, which are proving to be a strong sales driver. A unique equity product in Switzerland, which will soon be launched, should also ensure growth. This is at the aggressive and of the convertible spectrum, so to speak, with higher risks but also greater potential returns.

«We are back where we should be as a boutique», says CEO Torsten von Bartenwerffer. 

Search for the Super Client

Market conditions are playing into the company's hands: demand for corporate bonds is high, while at the same time the net issue volume is falling due to numerous maturities. The attractive coupons are further increasing the excess demand.

As part of its growth strategy, Fisch is now specifically looking for a so-called «super client». «We are specifically approaching potential partners who would like to use our infrastructure», says von Bartenwerffer.

This approach is not new: for many years, Schroders had mandated several convertible funds that were managed by Fisch AM. Now the company is once again examining corresponding collaborations. However, the CEO clarifies: «We are primarily looking for assets, not investors».