Convertible securities are corporate hybrid securities with the option to be converted into common stock, typically at the discretion of the security holder. This includes commonly known securities such as convertible bonds and preferreds.
The investment objective of Ninepoint Convertible Securities Fund is to seek to provide unitholders with income and long-term capital appreciation by investing primarily in a portfolio of convertible securities.
To achieve the Fund’s investment objective, the Portfolio Manager will look for opportunities for the Fund to participate in the potential growth of the common stocks underlying convertible securities, while seeking to earn income that is generally higher than the income those common stocks would provide.
The Fund expects to invest at least 80% of its net assets under normal conditions in convertible securities. The Fund invests primarily in U.S. securities, however the Fund may invest up to 15% of its total assets in Eurodollar convertible securities and up to an additional 20% of its total assets in other foreign securities. The Fund also may invest directly in equity securities.
Convertible securities are corporate fixed-income securities that yield lower interest payments with the option to be converted into a pre-determined number of equity securities, typically at the discretion of the bondholder.
Convertible securities allow holders to hedge against company downside via interest and principal payments.
The conversion ratio indicates a pre-determined number of shares an investor can receive.
Capital raises through convertible securities allow issuers to potentially avoid or delay dilution to existing equity holders.
After conversion, investors are eligible to receive an equity stake in the underlying company.
Convertible securities are structured to provide retail investors with an opportunity to enhance traditional portfolios. Given convertible securities are an opaque asset class, experienced Fund Managers are required to identify optimal solutions. Few Global Fund Managers exhibit the track record to consistently deliver results.
|Fund Type||Convertible Securities|
|Inception Date||January 20, 2021|
|Distributions||Quarterly and annually in December (if any)|
|Registered Tax Plan Status||Eligible|
|Management Fee||Series A: 2.25%
Series F: 1.75%
|Performance Fee||See prospectus|
|Minimum Initial Investment||$500|
|Minimum Subsequent Investment||$25|
|Minimum Investment Term||20 days (1.5% penalty)|