Sat, Sep 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Asian convertibles offer performance with lower volatility

Thursday, November 21, 2013

Beverly Chandler, Opalesque London:

RWC, the $7.3bn active investment manager, has recently taken a look at Asian equities, finding that demographics and higher growth rates are among the factors that drive investor interest in Asian equities but while finding outperforming Asian equity managers can be rewarding, this often comes with the undesirable by-product of high volatility.

Davide Basile, Head of Convertible Bonds at RWC, comments that it is surprising that more investors do not use the convertible bond market to access the Asian story: "When we compared the performance of Asian convertible bonds with global convertibles and equities over the past decade we found that the asset class can offer investors a number of benefits. Asian equities outperformed global equities substantially over this period, which is part of the reason why Asian convertibles outperformed global convertibles. However, the convertibles market in Asia shows some notable features" he says.

"It is fair to say the asset class has performed well through the business cycles of the past decade beating global equities and delivering returns similar to Asian equities, however if you look at that outperformance it comes with much lower volatility. If you look at the period from 2000 to October 2013 the MSCI Asia ex-Japan Total Return index returned 139.9% with annualised volatility of 21.7%, whereas the UBS Asia Focus Convertible Bo......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali