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.
- 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
- 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.