Feb 04 - Fitch Ratings has assigned BlueBay Investment Grade Absolute Return fund (BlueBay IGARF), a fund managed by BlueBay Asset Management, ‘Strong’ Fund Quality Rating.
BlueBay IGARF is a sub-fund of a Luxembourg Part I SICAV, UCITS IV compliant. Launched in May 2011, it is BlueBay’s absolute return credit flagship fund with EUR688bn of assets as of end-December 2012. It aims to achieve a total return of 300bps per annum, gross of fees, over the Merrill Lynch Euro Currency Libor 3 month Constant Maturity index with a target tracking error of 0-6%. The fund aims to be market neutral over a cycle and generate alpha in all credit environments.
BlueBay IGARF benefits from a robust and well balanced research-driven, capital preservation oriented investment process combining macro, fundamental, technical and relative valuation inputs in a formalised and disciplined manner. Credit alpha sources result from the implementation of high conviction, mainly relative value trades within a well-defined risk guidelines. Macro exposures are adjusted dynamically using a derivatives-based overlay approach.
The lead Portfolio Manager is Geraud Charpin, who has 18 years investment experience and is the IG team’s long / short specialist. The fund benefits from the depth of BlueBay’s IG fixed income resources (nine PMs and seven analysts with an average of 11 year experience) and robustness of the IT platform built around third party systems, including portfolio monitoring application dedicated to absolute return strategies.
BlueBay IGARF doesn’t have a sufficient track record to have a Lipper Score for consistent return. Since inception to end of January 2013, the fund returned 14.0% with a 2.8% annualised volatility. It ranks first (best) quartile in its Global Absolute return category Lipper category over the period. BlueBay’s track record in IG credit fund management is demonstrated by BlueBay’s Investment Grade fund, launched in 2004, which has a Lipper score for consistent return of five (best) over five years and four over four years.
Founded in 2001, BlueBay Asset Management is a specialist credit asset manager with Assets under Management (AUM) of USD51.1bn as at December 2012. BlueBay has been investing in IG credit since 2002 and currently manages USD20bn in IG credit. The company has 322 employees including 85 investment professionals as at December 2012.
Fitch’s Fund Quality Ratings combine Fitch’s experience in qualitative fund analysis with rankings and performance data from Lipper, a Thomson Reuters company. Fitch’s Fund Quality Ratings offer an independent, forward-looking assessment of a fund’s key performance and risk attributes and consistency of longer-term returns, relative to peer group or benchmarks. The ratings focus on the fund manager’s investment process, key fund performance drivers, risk management, and the quality of the fund’s operational infrastructure.
For more information, please see www.fitchspotlight.com/FQR.
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Link to Fitch Ratings’ Report: BlueBay Investment Grade Absolute Return Bond Fund