Miller Convertible Bond Fund (MCFAX)

Overview

The company operates an investment fund focused primarily on convertible bonds, directing at least 80% of its financial resources—counting both net assets and borrowings earmarked for investment—towards this specific market segment. It aims to benefit from the unique characteristics of convertible bonds, which include the potential for capital appreciation through the conversion feature while still providing income and preservation of capital through the bond component. The investment strategy is distinguished by its inclusive definition of convertible bonds, extending to synthetic convertible bonds and other securities identified by the advisor as sharing similar attributes to traditional convertible bonds. This broad perspective allows the fund to explore a wide range of investment opportunities in the convertible bond market.

Products and Services

• Convertible Bonds Investment

The primary service offered by the company is the investment in convertible bonds. This includes direct investments in various convertible bonds that offer both the fixed-income protection of bonds and the growth potential of stocks. Convertible bonds are appealing to investors looking for growth with reduced risk, as they can convert their bond investments into a predetermined number of shares, typically of the issuer's stock, at a specified time.

• Synthetic Convertible Bonds Investment

In addition to traditional convertible bonds, the fund also invests in synthetic convertible bonds. Synthetic convertible bonds are structured to mimic the characteristics of a convertible bond through the combination of a traditional bond and an option to convert into stock. This allows for flexibility in investment strategies and the potential to tap into the benefits of convertible bonds even when direct investment options are limited or not optimal.

• Investments in Securities with Convertible Bond-like Characteristics

Fulfilling its commitment to a broad investment approach, the fund extends its portfolio to include securities identified by the advisor as having similar characteristics to convertible bonds. This includes a variety of instruments that may not be convertible bonds in the traditional sense but offer comparable investment attributes, such as optional convertibility or a blend of equity and debt features. This strategy enables the fund to diversify its investment options further and capitalize on opportunities across different market segments that share the convertible bond's appealing balance of growth potential and downside protection.