OPM buys convertible on property shares

OPM Fund Management has bought its second reverse convertible product in two weeks, to benefit from volatility in the share prices of property companies.

The group owns reverse convertibles on Persimmon and Land Securities, as well as Man Group. OPM will earn 20% over the 12-month life of the latest product, structured by Société Générale, regardless of share price moves. When the product matures, OPM will have all its capital returned, as long as none of the companies' shares have fallen by more than 30%. Ross Henderson, a senior investment manager, says: "We were waiting for volatility to pick up before doing these structured products. "Getting a high income from them takes pressure off the portfolios elsewhere." "Markets co...