The strategy aims to achieve total returns from higher-yielding fixed income asset classes through active asset allocation, security selection and capital preservation techniques.
The strategy targets an average return of Cash + 4-6% per annum over a credit cycle (or approximately 5 year periods).
Strategy overview
- In a fast-moving world, reacting swiftly to evolving conditions can enhance investors’ returns.
- BlueBay Multi-Asset Credit provides the flexibility to be able to capture returns in attractive conditions, while seeking to provide downside protection when markets turn. We believe this investment management strategy represents an attractive asset allocation risk/return profile.
- Our expertise across the fixed income spectrum and diverse investment styles means that we can harness ideas across investment grade, global high yield, structured credit, contingent convertibles (cocos), convertible bonds and emerging markets.
- The strategy is managed by BlueBay’s Multi-Asset Decision Group, which comprises a team of senior investment professionals.
Our approach
Three key benefits
Investment strategy
- The BlueBay Multi-Asset Credit strategy comprises BlueBay’s best ideas across the global high yield, structured credit, convertible bonds, contingent convertibles (cocos), and the emerging markets. The objective is to hold 200-250 positions in total, which they believe to be the right balance between focus and diversification.
- Based on the top-down investment philosophy of the Multi-Asset Decision Group, BlueBay actively allocates assets between credit asset classes to maximize returns.
- BlueBay has a long track record in multi-asset credit investing, using an array of tools for capital preservation to minimize drawdown, such as holding more conservative securities, a greater allocation to cash or using derivatives to reduce (hedge) portfolio risks.
- Expected returns are generated by: asset allocation – the Multi-Asset Decision Group seeks to adjust beta exposure, favouring better performing credit markets, security selection – bottom up decision making by the specialist Portfolio Managers who select their best ideas within each asset class to form ′BlueBay′s 200 best ideas′, capital preservation in the form of cash management and macro hedges to minimize draw down.
- This represents what BlueBay believes is an optimal trade-off between focus and diversification.
- BlueBay believes that taking into account environmental, social and governance (ESG) factors is an important aspect of the investment process. As such, ESG integration – the systematic review of material ESG investment risks, is applied across all our funds.
Multi-asset credit expertise
Two experienced decision making groups, with a range of skills, determine the strategy's positioning:
- Firstly, the Multi-Asset Decision Group decides the strategy's overall asset allocation as well as any capital preservation techniques. The group has five members with an average of more than 20 years investment experience and a range of expertise including specific asset class knowledge, macro policy and investment risk.
- Secondly, specialist portfolio managers for each underlying asset class select their best ideas within their designated allocation. Each investment team has a proven track record, a diversified team of analysts and expertise in a range of sectors and countries within their asset class.