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This RBC Global Asset Management (U.S.) Website is intended for institutional investors only.

For purposes of this Website, the term "Institutional" includes but is not limited to sophisticated non-retail investors such as investment companies, banks, insurance companies, investment advisers, plan sponsors, endowments, government entities, high net worth individuals and those acting on behalf of institutional investors. The Website contains information, material and content about RBC Global Asset Management (collectively, the “Information”).

The Website and the Information are provided for information purposes only and do not constitute an offer, solicitation or invitation to buy or sell a security, any other product or service, or to participate in any particular trading strategy. The Website and the Information are not directed at or intended for use by any person resident or located in any jurisdiction where (1) the distribution of such information or functionality is contrary to the laws of such jurisdiction or (2) such distribution is prohibited without obtaining the necessary licenses and such authorizations have not been obtained. Investment strategies may not be eligible for sale or available to residents of certain countries or certain categories of investors.

The Information is provided without regard to the specific investment objectives, financial situation or particular needs of any specific recipient and does not constitute investment, tax, accounting or legal advice. Recipients are strongly advised to make an independent review with an investment professional and reach their own conclusions regarding the investment merits and risks, legal, credit, tax and accounting aspects of any transactions.

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The strategy invests in convertibles from issuers worldwide. Security selection is based on dynamic, proactive and proprietary research through which we aim to exploit capital appreciation opportunities through top-down, bottom-up and relative value analysis.

Strategy overview

  • Convertible bonds offer the potential for equity-like returns but with lower volatility, combined with the security and capital protection characteristics provided by a bond investment. We believe an allocation to convertibles can enhance your portfolio’s risk/reward characteristics.
  • We take a fundamental, benchmark-agnostic approach to managing convertible bonds. Our active management style and rigorous investment process offer investors a lower-volatility strategy with compelling alpha generation potential.
  • Issuers of convertibles range from smaller growth companies to some of the largest, most recognizable companies in the world. Our portfolio comprises a wide spectrum of sectors and credits.
  • We share research and analysis firm-wide, which means our dedicated convertible bonds research team benefits from the firm’s overall expertise

Our approach

Investment strategy

  • A team-driven approach drawing on our proprietary convertible bond analysis, in-house macro expertise and portfolio construction experience.
  • Our dedicated fundamental analysis underpins security selection and is based on dynamic, proactive, proprietary research where we seek to exploit capital appreciation opportunities through sector and issuer analysis.
  • The team adopts a benchmark-agnostic view and employs relative value techniques to evaluate the merits of each potential holding
  • The strategy invests at least two thirds of its net assets in global convertible instruments
  • The portfolio managers actively manage the exposure of the strategy in an effort to ensure optimal upside/downside participation with global equity markets
  • A deep understanding of the broader macroeconomic environment, strong credit analysis and the ability to identify the potential equity drivers are fundamental to performance generation
  • The six-stage investment process incorporates our macroeconomic outlook, fundamental company analysis, and relative value skills to construct  a balanced and diverse portfolio

Additional information

Inception
December 2008
Primary benchmark
Thomson Reuters Global Convertible Focus Index USD
Vehicle
Segregated Account, UCITS, Canadian Mutual Fund

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