The Salm-Salm Sustainability Convertible Fund invests globally in convertible bonds issued by companies that operate sustainably.

In our investment process, we ensure that convertible bond issuers are examined based on extensive exclusion criteria from a social, governmental and environmental perspective. We mitigate climate risks by actively reducing our carbon footprint. By investing in convertible bonds, we finance the growth of promising and innovative companies in the real economy. Combined with our credit and sustainability analysis, we offer our investors an individually selected, qualitatively convincing sustainability investment in convertible bonds.

Share Classes

Sustainability Convertible I

WKN: A1C323

ISIN: LU0535037997


Sustainability Convertible V


ISIN: LU0264979492


Sustainability Convertible R


ISIN: LU0815454565


Sustainability Convertible CHF


ISIN: LU1860403416


Investment process

Economic optimization

The primary factor in the selection process for convertible bonds is bottom-up analysis. The most important factor in the valuation and selection of individual securities is the credit and issuer quality (credit), followed by the equity and conversion potential of the convertible bond, as well as the asymmetric opportunity and risk profile desired for this asset class.

As part of the holistic company valuation, Salm-Salm & Partner performs a comprehensive equity analysis. The equity valuation tool developed by Salm-Salm & Partner is based on a multi-factor model, with the bottom-up analysis having a stronger weighting than the top-down analysis.

In addition to delta - the key figure for stock sensitivity - up to 30 other fundamental decision parameters are applied, including credit rating, stock potential, residual maturity and current interest rate. Technical factors are included in the overall assessment regarding the characteristics of the convertible bond and the option component, as well as the prospectus analysis.

Due to the benchmark-oriented approach to avoid regional and sectoral cluster risks, the analysis focus is on the valuation and selection of individual securities - not on individual regions or sectors.

For investment risk assessment, credit research and in-depth individual security evaluation are of crucial importance. The top priority for Salm-Salm & Partner as a bond investor is the quality of the credit and the associated promise of repayment by the issuer.

To comprehensively measure credit quality, Salm-Salm & Partner first uses official ratings from rating agencies (S&P, Moody's, Fitch). However, due to the occasionally low coverage of official ratings for convertible bonds, Salm-Salm & Partner developed its own proprietary system (VAG compliant) for calculating credit ratings (Asset Manager Rating) at an early stage. Thereby, Salm-Salm & Partner ensures that the credit quality (including balance sheet ratios, credit spreads and business risks) of all relevant issuers is analyzed and evaluated in depth. Any changes in the credit spread or credit spread risks are to be addressed through appropriate single-asset transactions.

The responsible treatment of humans, nature and the environment is deeply anchored in our beliefs and our understanding of values. In 2012, this set of values was transparently set out for the first time in a sustainable investment process. Since then, we have also been a signatory to the PRI (Principles of Responsible Investment). The sustainability (ESG) concept is enormously complex and has evolved tremendously since the first definitions (Brundtland Report 1987). Thus, we also continuously adapt to new insights, measurement methods and necessities. The path to better sustainability and the active assumption of responsibility beyond the economic factor is our aspiration. From defining initial revenue thresholds, complete exclusions of controversial business practices and models, and a strict best-in-class approach, we have continued to refine our process. In 2016, we took the decisions of the Paris Climate Conference as an opportunity to integrate climate protection into our investment process. We are continuously developing the measurement and reduction of the carbon footprint across all our portfolios. In particular, we are proud to be able to measure the impact of our investments on global warming in degrees Celsius together with the Frankfurt-based company right.based on science. Global warming may be less than two degrees Celsius if all companies operated in the same way as those we allocate.

CO2 footprint Analysis: Since 2017/18, equity and convertible bond research has systematically collected data to determine the CO2 footprint. Since 2019, these are published on the factsheets and the website. In doing so, the CO2 footprints of the respective sustainable mutual funds are set in relation to those of their respective benchmarks.

With this approach, Salm-Salm & Partner essentially pursues three goals:


  1. The CO2 footprint is determined as a KPI (key performance indicator), which is to be reported on regular and comprehensive basis. The aim is to create the greatest possible publicity. Clients should be able to track the CO2 profile of both funds at any time.
  2. The CO2 footprint should be significantly lower than that of the respective benchmark in order to convince clients of the advantages of active investment strategies.
  3. The CO2 footprint should decrease continuously over time until it reaches a level that is no longer reducible or only reducible by applying additional strategies and measures.

Sustainability approach

Classified according to Article 9 SDFR

of the EU Disclosure Regulation



Awarded the Austrian Ecolabel

by the Austrian Ministry of the Environment



Awarded with the FNG seal

Awarded the FNG seal every year since 2016, and with two stars since 2019



Compatible with Finanko criteria

the Austrian Bishops' Conference and the Religious Communities of Austria



Exclusion citeria

Exclusion of controversial business areas and practices.



With over 40 years of experience in sustainability analysis, a strong partner for our research process.



Best in Class

Our approach is to invest in the companies that are leading the way and implementing sustainable aspects in an exemplary manner.



In theory

The principle of the convertible bond

A convertible bond can assume three aggregate states: balanced, equity-like and bond-like.

Convertible bonds are usually in the balanced range at the time they are issued. Increases in the share price have a greater effect on the price of the convertible bond than decreases.

If the share price continues to rise, a convertible bond evolves to become more equity like. It reacts stronger to changes in the share price.

The third status - bond-like - describes a convertible bond whose underlying equity has declined to such an extent that the exercise of the call option is unlikely. Changes in the share price have only a minor effect on the price of the convertible bond. The bond-like convertible bond behaves like a conventional bond of the issuer.