The Strategy invests in interest rates, currencies and sovereign credits across developed and emerging markets. The strategy, which has no benchmark, translates top-down global macro themes into bottom-up individual asset selection, and has the flexibility to use cash and derivative instruments to generate alpha and minimise downside risk.
- BlueBay’s Global Sovereign investment team comprises 25 investment professionals with an average investment experience of 16 years
- A five-stage investment process combines disciplined portfolio construction drawing on the expertise of the BlueBay Emerging Market and Investment Grade teams.
- The portfolio managers have a compelling track record in successfully managing both absolute and total return strategies across global rates and currencies.
- Investing primarily in government bonds, interest rates and currencies of developed (DM) and emerging markets (EM), the strategy will seek to generate returns from capital appreciation and income.
- The strategy is built on established Investment Grade and Emerging Market institutional platforms
- Team-based approach taken to identify market inefficiencies and capitalise on return opportunities
- Top-down macro thematic conviction is based on deep fundamental country-level research and proprietary on-the-ground policy analysis.
- Individual risk exposures are based on well-researched medium term structural investment decisions. Investment Strategy does not rely on short term tactical or technical trading.
- Holding periods for positons vary depending on the specific characteristics of the opportunity, but will typically range between one week and several months.
- Interest rate and sovereign credit strategies are typically implemented via developed and emerging market government bonds, interest rate futures, swaps and CDS contracts. FX exposure usually takes the form of forward FX positions or non-deliverable forward contracts
- 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 strategies. We have been a UN-PRI signatory since 2013
Global investment grade expertise
- Benchmark aware but benchmark agnostic – alpha focus
- Very experienced team/analysts with a long/short investment mindset
- Strong focus on capital preservation
- Tends to perform best in negative risk markets, when issuer performance dispersion is high
- Extensive users of credit default swaps – both index and single name – to most efficiently implement investment ideas