Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

RWC to launch income share class on convertibles fund

RWC to launch income share class on convertibles fund

RWC is to launch a distributing share class for its Global Convertibles bond fund run by Davide Basile.

The $1.2 billion fund, which Basile has been managing for three years, is launching the new share class as the need for income has increased in the low interest rate environment.

Basile, who heads the RWC global convertibles team, pointed out convertibles are useful due to their return potential and ability to protect against spikes in market volatility.

Basile is optmistic on the prospects for the asset class this year: ‘2013 should be a year of opportunities for both equities and convertible bonds.

‘The macro environment looks set to provide a favourable backdrop for convertibles as the asset class may be among the beneficiaries of the reallocation out of fixed income given the low duration combined with conservative equity exposure the product offers,' he said in a statement.

‘Although there are also some great prospects in equities we remain aware that there are going to be significant political events that could destabilise markets. The US sequester and Italian elections could create disruptions.’

Basile also expects a period of strong performance in Asia, while remaining cautious on Europe given the slower growth and political uncertainty.

‘The US is among our preferred regions as we have seen the beginning of the housing recovery, which is generally feeding into improved economic data,’ said Basile. ‘Furthermore, valuations are not stretched and over the last few years American corporations have improved balance sheets and become more efficient.

‘The last few earnings seasons have been broadly characterised by a declining top line and an improving bottom line; hence any uptick in revenue growth, which we feel is commencing, will result in significant earnings improvement.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter