BlueBay launches diversified alternative credit fund
BlueBay Asset Management has launched the BlueBay diversified Alternative Credit fund in response to client demand.
It is designed to provide investors with a single point of access to BlueBay’s best ideas in long/short credit across liquid and less liquid markets, in a European structure, a Dublin ICAV (QIAIF). The fund is intended to appeal to both institutional investors and wealth managers seeking a more flexible approach to generating returns in the changing market environment.
The fund’s objective is to achieve enhanced risk-adjusted returns from investing across a diversified range of unconstrained and uncorrelated strategies and targets a net annualised return of cash +8%.
Investors can gain exposure to a wide opportunity set in global credit markets through diverse sub-strategies, with proven track records. BlueBay believes this combination of strategies is best placed to capture the changing opportunity set in global risk markets including divergent monetary policy, the rise of illiquidity premiums, greater bond dispersion and increased market stress.
The underlying strategies offer a spectrum of flexibility and illiquidity exposure and include Global Credit Alpha Long Short, Event Driven Credit and Emerging Market Credit Alpha. These strategies have been combined to provide the optimal balance of return and volatility while covering a wide universe to maximise the opportunity set within bond markets. Management and incentive fees are only charged at the fund level.
The fund will be overseen by BlueBay’s Multi Asset Decision Group, while each underlying strategy is managed by the respective portfolio managers.
It offers monthly subscriptions, with quarterly redemptions, and already has assets under management of over $90m, including seed capital and client investments.