Convertible Bonds
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. They aim to deliver upside participation in rising markets while helping protect capital during downturns.
Why invest in Convertible Bonds?
- Upside participation when equity markets rise.
- Potential capital preservation during periods of market stress.
- Diversification across equity-like and bond-like characteristics.
- Access to a broad and evolving opportunity set.
The asset class can be particularly attractive in periods of higher volatility, when active security selection and portfolio positioning become even more important.
Our approach
Our team has specialised in convertible bond investing for more than a decade. Led by Davide Basile since 2010, the team focuses exclusively on the asset class and uses proprietary models to identify opportunities across global markets.
We aim to build portfolios that capture the most attractive areas of the convertible bond market while carefully balancing return potential and risk. Our investment process combines detailed security analysis with a broader view of market conditions to support disciplined portfolio construction.
Enhanced-index convertibles: active precision meets passive efficiency
As early adopters in enhanced-index convertible bond investing, Redwheel is reshaping what investors can expect from a passive-style convertible allocation. Anchored to the Refinitiv Global Focus Hedged Convertible Bond Index, the strategy uses three specialist levers, delta optimisation, selective new issuance participation and a custodian-managed lending programme, to help offset passive fees and seek incremental outperformance while maintaining index-like risk.
Our strategies
Asia Convertibles
A strategy with the aim of achieving high risk-adjusted returns by investing in a portfolio of convertible bonds issued by Asian corporates.
Enhanced Index Focus Convertibles
A strategy with the aim to outperform the global convertible bond market while maintaining a similar risk profile.
Global Convertibles
A strategy with the aim to provide strong risk adjusted returns through the full market cycle by investing primarily in a diversified portfolio of convertible securities worldwide.
To find out more about the products available in your region, visit here
Latest insights
Watch the latest video from Portfolio Manager, Davide Basile, to learn more about Redwheel's Enhanced Index Focus Convertibles Strategy.
Are you getting the right ‘flavour’ of convertible bond exposure? Davide Basile, Redwheel Convertible Bonds, asks why FTSE Global Vanilla and Focus indices behave very differently over time despite covering the same asset class.
The latest insight from George Hill, CFA, Analyst, in the Redwheel Convertible Bonds team assesses how convertible bonds might perform in various scenarios compared to high-yield bonds, taking into account this "hidden duration".
Meet the team
Davide is a Partner and head of the Redwheel Convertible Bonds team, having joined Redwheel in 2010 from Morgan Stanley.
Akash began his career at Redwheel in 2014 on a year-long placement as an Analyst in the European Equity team.
Luiz joined the Convertible Bonds team in 2026 as a Junior Analyst.
No investment strategy or risk management technique can guarantee returns or eliminate risks in any market environment.