Zurich-based MRB Vermögensverwaltungs has launched a second convertible bond fund, Citywire Switzerland can reveal.
Protea MRB Convertible Bonds fund is a Luxembourg-domiciled strategy that invests globally in convertible bonds purchased within a price range of 95%-105% that offer approximately 1.5-2.5% yield and a muted equity delta of 30-35%.
Speaking to Citywire Switzerland Töllke said the firm has launched an identical strategy because Luxembourg-domiciled funds are increasingly more accepted by Swiss asset managers who have German and Italian clients.
‘Some clients prefer EU structures because of a disadvantageous treatment of Swiss funds from a taxation point of view (Italy) and because some asset managers want to focus on funds that are registered for public distribution in Germany, which is not easy to achieve with Swiss-domiciled funds.’
Töllke said the firm prefers Luxembourg structures because it helps to avoid significant outflows on coupons and taxable gains (35%) that are common when it comes to Swiss bond funds.
‘While such payments may be claimed and refunded quickly for non-Swiss investors as a cash refund, the money outflows are constantly reducing assets under management for the investment manager as long as tax refunds are not immediately reinvested.’
The fund is a mirror of a Swiss-domiciled MRB Wandelobligationen Fonds that is managed by Didier Huyberechts and Markus Töllke and Gianfranco Iuliano.
According to the latest factsheet the top three direct investment in the fund are a US construction engineering company Dycom Industries (0.75% 15/09/2021), a German Steinhoff Finance Holding (1.25% 21/10/2023) and a Malaysian investment company Indah Capital (0% 24/10/2018).