BlueBay Total Return Diversified Credit Fund

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Key documents

    Objective

    The Fund aims to achieve a total return from higher-yielding fixed income asset classes through active asset allocation, security selection and capital preservation techniques

    Fund specific risks

    • At times, the market for emerging market bonds, high yield bonds or convertible bonds may dry up, which could make it difficult to sell these bonds, or the fund may only be able to sell them at a discount
    • There may be cases where an organisation with which we trade assets or derivatives (usually a financial institution such as a bank) may be unable to fulfil its obligations, which could cause losses to the fund
    • Investing in high yield bonds offers you the chance to gain higher returns through growing your capital and generating income. Nevertheless, there is a greater risk that the organisation which issued the bond will fail, which would result in a loss of income to the fund along with its initial investment
    • RBC BlueBay could suffer from a failure of its processes, systems and controls – or from such a failure at an organisation on which we rely in order to deliver our services – which could lead to losses for the fund
    • At times, the market for high yield bonds may dry up, which could make it difficult to sell these bonds, or the fund may only be able to sell them at a discount
    • The liquidity of a security can fluctuate over time due to market conditions. Reduced market activity or participation and increased market restrictions or impediments may result in greater liquidity risk
    • As nominal interest rates rise, the value of fixed income securities held by the fund is likely to decrease. Securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations
    • RBC BlueBay's ESG analysis can rely on input from external providers. Such data may be inaccurate or incomplete or unavailable and RBC BlueBay could assess the ESG risks of securities held incorrectly
    • RBC BlueBay could suffer from a failure of its processes, systems and controls – or from such a failure at an organisation on which we rely in order to deliver our services – which could lead to losses for the fund

     

    For share class information, please contact marketing@bluebay.com

    Investment approach

    • The BlueBay Total Return Diversified Credit Fund comprises our best ideas across the global high yield, loans, structured credit, convertible bonds, cocos, and the emerging markets

    • Our objective is to hold 200-250 positions in total, which we believe is the right balance between focus and diversification

    • This strategy is not a fund-of-funds, and holds the underlying securities directly

    Market opportunity

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    Based on the top down investment philosophy of the Multi-Asset Decision Group, we actively allocate assets between credit asset classes to maximise returns
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    BlueBay has a successful track record in multi-asset credit investing, using an array of tools for capital preservation to minimise drawdown, such as holding more conservative securities, a greater allocation to cash or using derivatives to reduce (hedge) portfolio risks