The strategy aims to achieve total returns from higher-yielding fixed income asset classes through active asset allocation, security selection and capital preservation techniques.
Strategy overview
- In a fast-moving world, reacting swiftly to evolving conditions can enhance investors’ returns.
- 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, cocos, convertible bonds and emerging markets.
- The strategy is managed by our Multi-Asset Decision Group, which comprises a team of senior investment professionals.
Our approach
Three key benefits
Investment strategy
- The BlueBay Total Return Credit strategy comprises our best ideas across the global high yield, structured credit, convertible bonds, cocos, and the emerging markets. Our objective is to hold 200-250 positions in total, which we believe to be the right balance between focus and diversification.
- Based on the top-down investment philosophy of the Multi-Asset Decision Group, we actively allocate assets between credit asset classes to maximize returns.
- The BlueBay Fixed Income Team 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 – our 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 we believe is an optimal trade-off between focus and diversification.
- 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.
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 committee has six 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.