Opalesque Industry Update - The Global Convertible Bond team at RWC, headed up by Davide Basile, has taken over the RWC Cautious Absolute Rate and Currency fund. |
The fund will be renamed RWC Core Plus and it will be co-managed by Basile and Lakshman Harendran. The objective of the fund will be to generate strong real returns with low volatility. The fund will have a core portfolio of convertible bonds that will be complemented by the use of other asset classes and hedging.
Basile’s team currently manage $1.8bn in long only convertible bonds funds having seen net inflow of $595m this year. The approach and asset allocation framework currently used by the team will be extended to RWC Core Plus. It is expected that the new strategy will have many of the benefits of a traditional convertible bond fund but it will have additional flexibility to express the macro views of the team to reduce downside volatility and enhance returns.
The fund is a UCITS IV Luxembourg SICAV. It is registered for sale in a number of European countries. It has GBP, USD, EUR and CHF currency share classes and both UK reporting status and German tax transparency.
Dan Mannix, CEO of RWC commented:
"Today investors are demanding products that aim to deliver strong risk adjusted returns that can reduce exposure and correlation to traditional credit markets. Davide and his team have demonstrated over many years that they are among the best convertible managers in the market and convertibles provide the perfect starting point for total return strategies.
“RWC’s assets have significantly grown over recent years having seen a rise from $4.8bn to $7.3bn in 2013 with flows for our Income, Convertible Bond, Europe Long Short and Activist teams. We now have a globally diverse range of investors from discretionary wealth managers and family offices to institutional pensions and consultants both in Europe and the US.”