Nicolas Crémieux from Mirabaud AM is our Fund Manager of the Month
5 FEB, 2025
By Jose Luis Palmer from RankiaPro Europe
Nicolas Crémieux, Head of Convertible Bonds at Mirabaud Asset Management, has experience in the portfolio management industry since 2000. Prior to joining Mirabaud Asset Management in August 2013, Nicolas was Head of Convertible Bond Management at Candriam between 2000 and 2013, where he managed two funds, as well as being Head of Technical Analysis. Nicolas Crémieux is a Certified European Financial Analyst Charterholder (EFFAS) and holds a Master's Degree in Finance and a Master's degree in Insurance and Risk Management from the University of Paris Dauphine.
Why and how did you decide to go into the financial sector, did you have other vocations?
My passion for finance began at age 10 when my grandfather gifted me 1,500 euros (in today’s value). I invested in France’s first privatizations under Jacques Chirac’s government (1986–1988) and avidly read financial newspapers to understand share price movements. This early exposure sparked my interest in economics and led me to study the subject at Paris Dauphine University, shaping my career in finance.
What is your view of the current macroeconomic environment and how might it affect markets? What impact might this have on global bonds?
The macroeconomic environment in 2025 is expected to be constructive but marked by heightened volatility and greater market dispersion. Economic and policy shifts will play a pivotal role in determining whether investment returns are driven more by momentum or valuations.
Convertible bonds, blending attributes of fixed income and equities, currently exhibit their most favorable characteristics in two decades for capturing convexity, positioning them well to gain more than they lose during share price movements. This dynamic environment should provide opportunities for active management and skilled stock-pickers to shine.
How should investors orient their portfolios in this environment? What are the biggest risks facing investors?
In this environment, investors should focus on building diversified portfolios that balance exposure to fixed income and equities. An allocation of 5% to convertible bonds can play a key role, offering both downside protection and upside participation, particularly in growth sectors where dispersion creates opportunities.
The biggest risks facing investors include unexpected shifts in economic policy, persistent inflationary pressures, and geopolitical uncertainties. Vigilant risk management and focus on resilient assets are essential.
What differentiates the Mirabaud - Sustainable Convertibles Global Fund from the others and what advantages can it bring to an investor’s portfolio in the current scenario?
The Mirabaud Sustainable Convertibles Global Fund stands out for its active management, crucial in navigating market swings to capture 40 to 70% of the upside of equities but losing only between 20 and 50% on the downside over a full market cycle, a flexibility that passive strategies cannot match.
To do so, we actively manage the average delta within a 30%-60% range, aligning sensitivity to equities with our macro views. In addition, I would say that our high-conviction, concentrated approach, with around 50 holdings, further differentiates us. Supported by a dedicated team of five professionals, we regularly engage with management of the companies to gain deep operational insights and promote best practices in ESG, ensuring transparency and sustainable value creation.
Can you give us an example of a position that you have held for a long time in your portfolios and why?
A key example of our high-conviction approach is the Equinox Gold 4.75% convertible bond (maturing 15/10/2028), which we’ve held for nearly a year as a hedge against inflation and geopolitical risks.
Equinox Gold offers exposure to a diversified portfolio of high-quality assets across the Americas, including the Greenstone Mine project in Canada, a cornerstone expected to boost production and drive growth. With rising gold prices, strategic developments, and a focus on efficiency, sustainability, and shareholder value, the company is well-positioned for strong performance and returns.
What macroeconomic data are most important to monitor in order to manage bond investments? What do you consider most important when including a company in your portfolio?
We focus on the rate of change in inflation and economic growth, as these are key indicators for forecasting financial market returns. By assessing whether growth and inflation are accelerating or decelerating, we identify four market scenarios: Recovery, Expansion, Slowdown, and Recession.
This framework guides our allocation decisions across delta, credit, duration, company size, and equity style to align with each market phase’s performance profile.
What ratios does a company have to meet to include their bonds in your portfolio? How is Mirabaud’s selection process structured?
We identify opportunities globally, regardless of index inclusion, using a disciplined bottom-up convertible selection process tailored to this asset class and guided by a Growth at a Reasonable Price style.
The team leverages in-house quantitative tools and qualitative research, focusing on five key factors: ESG sustainability screening, the convertible bond’s technical profile, issuer credit quality, equity upside potential based on our target price, and liquidity that meets UCITS standards.
What do you like to do in your free time?
I enjoy playing golf in my spare time when the weather permits. In the busy and fast-paced world of today, I like going to the course and taking some time to relax on the greens, enjoying the beauty of the surroundings while losing myself in the game. (I photographed the photo below at the Aroeira PGA golf course, which is close to Lisboa.)
