Citywire Selector - For Professional Investors

Register to get unlimited access to 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

Asset management firm RWC Partners is set 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 said: ‘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.’

The RWC Global Convertibles fund has returned 13.54% in the three years to the end of January 2013. This compares to its Citywire benchmark, the UBS Global Convertible USD, which rose 23.06% over the same period.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Events
  • Citywire Thailand 2016

    Citywire Thailand 2016

  • Citywire Paris Alt Ucits 2016

    Citywire Paris Alt Ucits 2016

  • Citywire Deutschland 2016

    Citywire Deutschland 2016

  • Citywire Zurich Alt Ucits 2016

    Citywire Zurich Alt Ucits 2016

  • Citywire Montreux 2016

    Citywire Montreux 2016

  • Citywire Latin America 2016

    Citywire Latin America 2016

  • Citywire Amsterdam 2016

    Citywire Amsterdam 2016

  • Citywire Munich 2016

    Citywire Munich 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Paris 2015

    Citywire Paris 2015

  • Citywire Paris 2015

    Citywire Paris 2015

  • Citywire Global New Ideas 2015

    Citywire Global New Ideas 2015

  • Citywire Global New Ideas 2015

    Citywire Global New Ideas 2015

  • Citywire Berlin 2015

    Citywire Berlin 2015

  • Citywire Berlin 2015

    Citywire Berlin 2015

  • Citywire Berlin 2015

    Citywire Berlin 2015

  • Citywire Alternative Ucits Retreat 2015

    Citywire Alternative Ucits Retreat 2015

  • Citywire Alternative Ucits Retreat 2015

    Citywire Alternative Ucits Retreat 2015