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Convertible bonds provide a hybrid solution for investors looking for a balanced exposure to financial markets that combines the attractive elements of both equities and bonds. For more than a decade, our team has been deploying its proprietary models and systems to help identify the most attractive opportunities within the asset class. We provide a range of actively managed solutions, designed to exploit the attractive asymmetric return profile of convertible bonds with varying degrees of risk tolerance.
Emerging and frontier markets represent the fastest growing economies in the world. We believe the continued growth of these markets presents compelling opportunities across a range of industries. Our index agnostic, opportunistic approach has been honed for more than two decades, and the depth of experience garnered within our team allows us to participate in attractive growth opportunities that are off the beaten track for most investors.
We invest in a small number of high-quality European companies, where we identify potentially significant opportunities to create additional value by addressing certain company-specific issues. We then act as a catalyst for change by constructively working together with the companies and other shareholders.
A highly experienced team with an established track record of delivering positive outcomes for investors. Harnessing the full power of dividends is a tried and tested method of investing, with the potential to deliver value added long-term returns and lower-than-average volatility. The team looks for the rare combination of a premium yield, sustainable dividend and attractive valuation, which only occurs when controversy appears. By working hard to understand the nature of a controversy, we aim to lean the probability of investment success in your favour.
We seek out investment opportunities from around the world with little regard for the benchmark. Our focus is on the supply side of industries, or the capital cycle, highlights areas where there are likely to be companies whose share price is trading well below what we believe is the intrinsic value. Alignment of interests is key – we are aligned with our investors through a fee structure that shares performance risk, and with our investments through an approach which emphasises management teams that are incentivised to be effective capital allocators.
Japan is the world’s third largest economy and its corporate landscape is undergoing dramatic change. Through our joint venture with Tokyo-based Nissay Asset Management (NAM), we invest in a small number of select Japanese companies that are not valued to their full potential due to factors we see as rectifiable. We then engage in order to act as an agent for the change required to unlock value.
We are long-term value investors who believe that short-term factors prompt many market participants to overreact to news which may have little or no impact on the true value of a company. This causes share prices to diverge from the intrinsic value of the underlying business and provides an opportunity for long-term investors to purchase shares at an attractive discount. This builds in a margin of safety but also provides meaningful long-term total return potential through both dividend income and capital appreciation.
Sustainability, in its broadest context, is structurally changing the investment landscape from both a risk and opportunities perspective. The Redwheel Sustainable Growth team seeks to identify structural longer-term themes and dynamics in the economy and society. The team invests capital to take advantage of the potential return opportunities these themes and dynamics offer, and to facilitate and further advance the positive impact of investee companies on critical sustainability challenges and development goals.
The Redwheel Biodiversity Strategy aims to provide long-term capital growth in a portfolio of global companies whose products and services have the potential to mitigate biodiversity loss. The Team believes that the preservation of the planet’s biodiversity is a long-term, structural, growth opportunity supported by regulatory, governmental and consumer pressures.
Why now for Biodiversity
Natural ecosystems are under threat from an array of mostly human-made problems such as pollution and overexploitation of resources, exacerbated by a funding gap. Ecosystem services are worth an estimated $125-$140 trillion per year and only ~$39 billion of finance currently flows to biodiversity. This is an unrecognised investment opportunity that the Redwheel Biodiversity Strategy aims to take advantage of.[1]
Investment approach
The Investment Team selects companies that can progress the preservation of biodiversity through their products and services and that have the potential to succeed profitably over the long term. The team’s unconstrained, active, approach to selecting companies results in a diversified, multi cap portfolio.
There are four themes in which the investment team see the highest potential for investor action, providing breadth and depth of investment opportunities:
Sustainable Materials
Terrestrial Ecosystems
Aquatic Ecosystems
Circularity & Waste Management
Meet the team
Amanda O'Toole
Amanda joined Redwheel in April 2023 as a Partner and Portfolio Manager.