Architas' Caspar Rock: convertible bonds can cut volatility

Convertibles give the holder the right - but not the obligation - to turn the bond into an equity holding at their discretion. Rock (pictured) invests in five convertible bond funds, including from RWC, M&G, and Jupiter, which he said he counts as equities and "risk on assets" but are not as risky as actually holding equities. "It is a way of reducing volatility in our equity portfolio. They should be more popular in the retail space but they aren't because they are difficult to explain to investors. "Global high yield is giving returns of 5% to 8%. Compare this to convertibles whi...