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This RBC Global Asset Management (U.S.) Website is intended for institutional investors only.

For purposes of this Website, the term "Institutional" includes but is not limited to sophisticated non-retail investors such as investment companies, banks, insurance companies, investment advisers, plan sponsors, endowments, government entities, high net worth individuals and those acting on behalf of institutional investors. The Website contains information, material and content about RBC Global Asset Management (collectively, the “Information”).

The Website and the Information are provided for information purposes only and do not constitute an offer, solicitation or invitation to buy or sell a security, any other product or service, or to participate in any particular trading strategy. The Website and the Information are not directed at or intended for use by any person resident or located in any jurisdiction where (1) the distribution of such information or functionality is contrary to the laws of such jurisdiction or (2) such distribution is prohibited without obtaining the necessary licenses and such authorizations have not been obtained. Investment strategies may not be eligible for sale or available to residents of certain countries or certain categories of investors.

The Information is provided without regard to the specific investment objectives, financial situation or particular needs of any specific recipient and does not constitute investment, tax, accounting or legal advice. Recipients are strongly advised to make an independent review with an investment professional and reach their own conclusions regarding the investment merits and risks, legal, credit, tax and accounting aspects of any transactions.

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The strategy's objective is to achieve returns above the benchmark by investing primarily in corporate debt of securities rated below investment grade with a focus on capital preservation.

Our investment approach is to actively manage the strategy through long-only investing across global markets with a focus on the US and Europe. We explicitly and proactively incorporate ESG considerations to ensure the strategy invests in securities whose operations take appropriate account of ESG concerns and risks.

Strategy overview

  • An actively managed, long-only strategy
  • A deep, fundamental research-oriented approach which focuses on bottom-up security selection and has capital preservation at its core
  • Explicitly and proactively incorporating ESG considerations into credit and risk analysis

Our approach

Investment strategy

  • Global developed market high yield exposure with a bias toward U.S. and European corporate issuers
  • A concentrated but diverse portfolio typically comprising approximately 100–120 issuers with a mix of secured and unsecured paper
  • Proactively excludes worst-in-class ESG performers
  • The BlueBay Fixed Income Team 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.
  • Dynamic allocation between sectors meaning limited sector biases prevalent
  • Liquid hedging instruments (e.g., HY CDX) utilised to dynamically adjust risk levels within the strategy
  • All non USD exposure hedged back to the base currency of the strategy
  • Dynamic regional allocations driven by relative value cross border
  • Top down macro inputs help inform thematic credit strategies

Global leveraged finance expertise

Above all else, capital preservation dominates the investment thesis of the strategy. This is achieved by the quality and rigour of the proprietary fundamental bottom up credit research undertaken. The investment process is highly idea-generative and collaborative in nature with constant dialogue across all facets of the team.

Crucially this group of specialists has experience of analysing credit and investing across multiple credit cycles. This multi-cycle experience is a prerequisite to investing effectively in both rising and falling markets.

Additional information

February 2017
Primary benchmark
BAML Global High Yield Investment Grade Country Constrained Index (HWIC)
Separate Account, UCITS

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