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Convertibles’ drive steers fund to £250m

The popularity of multi-asset multi-manager funds has helped the RWC global convertibles fund reach assets of over £250m since its launch 18 months ago.

RWC Partners, formerly MPC Investors, says 25 to 30 per cent of the fund’s assets have come from UK multi-managers.

The fund invests globally in a range of convertible bonds and is held by multi-managers at Maia Capital, Williams de Broe and Premier.

Having distributor status and a sterling share class are structural features that appeal to multi-managers as they can buy the Luxemburg-domiciled fund in the same way as a UK unit trust. From an investment angle, diversity away from equities and fixed interest is the main attraction.

RWC Partners says convertible bonds can be seen as conservative equity exposure, with the potential to cushion investors against capital losses while still enabling them to benefit from share price rises. It says the MSCI Global Equity index is down by just over 18 per cent since the highs of October last year while the fund has fallen by 7.5 per cent over this period.

Head of sales Dan Mannix says: “Convertibles have an interesting risk profile in that they offer equity-like returns with volatility similar to bonds. In periods of equity market weakness, convertible bonds fall by a lesser degree than equities.”

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