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Advent Convertible and Income Fund
The Fund is structured as a closed-end vehicle, meaning it raised a fixed pool of capital through an initial public offering and its shares trade intraday...
Advent Convertible and Income Fund
The Fund is structured as a closed-end vehicle, meaning it raised a fixed pool of capital through an initial public offering and its shares trade intraday on the NYSE. This architecture distinguishes it from open-end mutual funds: the manager does not face daily redemptions that can force asset sales during credit dislocations. Advent Capital Management, LLC serves as the investment adviser, overseeing a mandate centered on convertible securities and income-producing instruments. Strategy deploys primarily into convertible bonds — hybrid instruments that pay a fixed coupon while carrying an equity conversion option — and high-yield corporate debt. The portfolio construction seeks to capture equity upside through the conversion feature while clipping coupon income as a base return. Holdings span issuers across technology, healthcare, and financial sectors, selected for balance-sheet strength and volatility characteristics that favor convertible structures. Geographic focus is predominantly North American issuers, with select exposure to developed-market convertibles where liquidity and creditor protections meet the Fund's thresholds. The Fund discloses its portfolio quarterly via SEC filings, and positions have historically included convertibles from names like Palo Alto Networks and Wells Fargo, alongside allocations to distressed credit and event-driven special situations. Advent Capital Management runs additional strategies beyond the public vehicle, including hedge fund and separately managed account programs, though detailed team headcount and parallel fund sizes remain undisclosed. Structural differentiation lies in the public-vehicle wrapper itself. The closed-end fund format imposes a fixed capital base while offering daily liquidity to shareholders on exchange — a tension the manager navigates by maintaining a credit line and, in periods of wide discounts to net asset value, executing share repurchases or tender offers. This requires active discount management alongside portfolio management, a discipline absent in open-end or private credit fund structures.
General information
Firm type
Asset Manager
Year founded
—
AUM
Undisclosed
Location
Region
North America
Country
United States
City
—
Corporate office
—
Sector focus
Frequently asked questions
Who manages the Advent Convertible and Income Fund?
Advent Capital Management, LLC serves as the fund's investment adviser. Advent Capital is a New York-based asset manager specializing in convertible securities, high-yield bonds, and equity strategies. The firm is led by founder and Chief Investment Officer Tracy V. Maitland, who has overseen the convertible platform since the firm's inception.
How does the closed-end fund structure affect liquidity and pricing?
As a closed-end fund, AVK raised a fixed pool of capital through an IPO and its shares trade on the NYSE. Investors buy and sell shares from other market participants, not from the fund itself. This can cause the share price to diverge from the net asset value per share, trading at a premium or discount depending on market demand and sentiment toward the convertible credit strategy.
What types of securities does the Fund primarily hold?
The Fund concentrates in convertible bonds, which pay fixed coupons and carry an option to convert into the issuer's common equity at a predetermined price. The portfolio is supplemented by high-yield corporate debt, bank loans, and occasionally equity securities received upon conversion or in restructurings. This blend is designed to generate current income while allowing participation in equity upside.
How does the Fund apply leverage to the portfolio?
AVK has historically employed leverage through a credit facility to enhance yield and total return. The cost of leverage creates a spread against the yield earned on the portfolio assets. The amount of leverage fluctuates based on market conditions and the adviser's assessment of risk-adjusted return opportunities in convertible and high-yield markets.
What is the Fund's distribution policy?
The Fund maintains a managed distribution policy, paying regular monthly or quarterly distributions to shareholders. Distributions are funded by net investment income — coupons and dividends from portfolio holdings — and may include return of capital in periods where earnings do not cover the declared distribution level. Shareholders receive a Form 1099 annually detailing the tax character of distributions.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
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