BlueBay Asset Management is targeting opportunities across the sub-investment grade credit spectrum with the launch of a total return credit fund.
The BlueBay Total Return Credit fund will be added to BlueBay’s existing range of Luxembourg-domiciled funds and is designed to respond to investor interest in greater flexibility to access all areas of the credit market.
The London-based fixed income specialist said the fund will not be constrained by a benchmark and will have the potential to invest in high yield and loans, emerging market debt and convertible bonds.
It will be co-run by the firm’s Asset Allocation Committee, which is comprised of six specialist credit managers with an average industry experience of 19 years.
Sources of return are broad based, with alpha achieved via security selection, asset allocation, asset class beta and, in periods of maximum uncertainty, macro/tail hedging.
The fund aims to achieve a total return of 5-10% per annum over the credit cycle.
Commenting on the launch, Mark Poole, chief investment officer of BlueBay, said: ‘The natural downside protection afforded by higher yielding asset classes, combined with our unique view of risk and proven track record in asset allocation, means we can create a very attractive risk return proposition.’