Heightened equity market risk and negative yielding fixed income securities leaves only hard asset allocation decisions. For investors needing more from their fixed income allocation, global convertible bonds can offer upside that is simply not available in developed sovereign or credit markets. Australian investors have historically underutilised this asset class that can optimise portfolio efficiency and bring powerful diversification benefits. As an instrument, global convertible bonds are balanced with both equity and bond characteristics, offer a specific risk/return profile thanks to their convexity and give an asymmetric pay-off. Global convertible bonds offer a whole new world of opportunity. - Arnaud Brillois, Lazard Asset Management. Earn 0.50 CE/CPD hrs on Portfolio Construction Forum