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Key documents
Objective
The BlueBay Investment Grade Asset-Backed Credit Fund (the Fund) invests in developed market structured credit securities. The fund adopts an opportunistic approach to investing across the structured credit market and can invest across all collateral types, including senior secured leveraged loans, mortgages, credit cards and auto loans.
The Fund is actively managed, and its objective is to achieve returns above the benchmark, the ICE BofA Merrill Lynch Euro Currency 3-Month Deposit Offered Rate Constant Maturity Index, by investing in predominantly investment grade asset-backed securities.
Intended retail investor
This product is only available to qualified Institutional Investors and/or investors who are:
(a) an informed investor who has an average knowledge of relevant financial products (an informed investor can make an informed investment decision based on the regulated and authorised offering documentation, together with knowledge and understanding of the specific factors/risks highlighted within them only); or has some financial industry experience; or
(b) an advanced investor who has a good knowledge of relevant financial products and transactions; or has financial industry experience; or is accompanied by professional investment advice; or is included in a discretionary portfolio service
Fund specific risks
- At times, the market for Structured Credit Securities may dry up, which could make it difficult to sell these securities 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
- Structured Credit Securities in which the fund may invest may not be at the most senior level of the debt issued by the relevant issuer and, accordingly, the fund maybe exposed to the risk that its claims on the asset pool of any such note aresubordinated to other creditors in the event of an insolvency of any such issuer,meaning in turn that the fund could sustain losses in such circumstances if it were unable to recover its original investment
- Structured Credit Securities are often exposed to prepayment and extension risks that may have a substantial impact on the timing and size of the cash flows paid by the underlying pool of financial assets. In the case of prepayments, this may negatively impact the return of the fund as the income generated will have to be reinvested at the prevailing interest rates which may be lower. Conversely, extension risk tends to increase when interest rates rise as the prepayment rate decreases causing the duration of Structured Credit Securities to lengthen and expose investors to higher interest rate risk
- 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
This is a marketing communication. There are several risks associated with investing in this product. Please refer to the prospectus of the fund and to the KIID available on this website before making any final investment decisions.
Investment approach
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Focus on investment grade rated ABS with a typical average rating of AA/A
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Diversified exposure across the ABS market through both asset classes and regions
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Fundamental bottom-up analysis alongside assessment of market technicals and macro inputs
Market opportunity
Investment grade ABS offer significant protection from a pick up in defaults
Bonds typically trade at a yield pick up versus similarly rated more traditional fixed income
ABS are typically floating rate and have a shorter spread duration versus other assets
Sid Chhabra
Managing Director, Head of European High Yield, Securitized Credit and CLO Management, BlueBay Senior Portfolio Manager
Sid is Head of European High Yield, Securitized Credit and CLO Management, and a BlueBay Senior Portfolio Manager within the team. Sid joined BlueBay Asset Management (which is now part of RBC Global Asset Management) in June 2018 and has over 19 years of credit, securitized credit and CLO experience, having been involved in the securitized credit markets from the earliest stages of issuance. He was most recently a London-based Managing Director, responsible for securitized credit and CLOs, at Anchorage Capital Europe, a USD15 billion alternative investment manager. Prior to Anchorage, Sid was part of the Securitized Credit/CDO Group, EMEA, at JPMorgan where he was involved in originating, structuring and investing in securitized credit products. Sid holds a BTech from the Indian Institute of Technology, Madras (IITM) and an MS from the London School of Economics.
Ashley Blatter
BlueBay Portfolio Manager, Securitized Credit & CLO Management
Ashley joined BlueBay's Securitized Credit and CLO business in September 2018. Prior to joining BlueBay Asset Management (which is now part of RBC Global Asset Management), Ashley was Head of Specialist Credit Investments and Securitized Credit at QBE Insurance Group. He previously spent 14 years' at NM Rothschild & Sons where he was latterly responsible for managing the European Leveraged Loan/CLO portfolio. Ashley began his career in Acquisition Finance at JPMorgan and holds a BSc in Mathematics from Imperial College, London.
Tom Mowl
BlueBay Senior Portfolio Manager, Securitized Credit & CLO Management
Tom joined BlueBay's Securitized Credit and CLO Management business in April 2021. Tom has over 14 years of structured credit investing experience and before joining BlueBay Asset Management (which is now part of RBC Global Asset Management) was most recently a Senior Portfolio Manager at CIP Asset Management, managing US and European asset backed securities. Prior to this, he held a similar position at WyeTree Asset Management, a specialist ABS investment boutique, where he was the Portfolio Manager. He started his career at Solent Capital Partners as an ABS Analyst. Tom is a Chartered Financial Analyst, holds an MSc Financial Mathematics with Distinction from Warwick Business School and has a BSc (Hons) Mathematics and Physics from the University of Warwick.