In a low interest rate environment where equity volatility is high, convertible bonds stand apart because of their convexity, i.e. their ability to capture part of equity market rises while cushioning losses in down periods thanks to their bond floor.
Halfway between equities and bonds, convertibles help revitalise bond
allocations or reduce risk in equity exposure, notably by reining in volatility.
Convertibles currently offer a variety of opportunities and our investment
team’s convictions place Europe as the zone to focus on. We can expect ongoing
quantitative easing, the lower euro, cheaper commodities and upbeat
macroeconomic developments to provide support in coming months.
Edmond de Rothschild Asset Management has more than 20 years’ experience
in convertible bonds and is one of Europe's largest players as far as assets
under management are concerned. We have a comprehensive range of open-ended
funds covering all geographical zones. Two funds help tap into today’s
favourable conditions in Europe:
Edmond de Rothschild Fund Convertible Europe All Caps
Edmond de Rothschild Europe Convertibles