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Key documents
Objective
The Sub-Fund is actively managed and targets better returns than its benchmark, the Bloomberg Global Treasury Total Return Index, USD hedged , by investing in a portfolio of investment grade-rated fixed income securities while taking into account ESG considerations. There are no restrictions on the extent to which the Sub-Fund's portfolio and performance may deviate from the ones of the benchmark. As part of the investment process, the Investment Manager has full discretion over the composition of the Sub-Fund's portfolio and may take exposure to companies, countries or sectors not included in the benchmark.
Sustainability-related disclosure
This is a marketing communication. There are several risks associated with investing in this product.
Risks
Liquidity Risk
At times, the market for investment grade 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.
Impact of Derivatives
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.
Operational Risk
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.
Emerging market risk
Investing in emerging market 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.
ESG risk
BlueBay's ESG analysis can rely on input from external providers. Such data may be inaccurate or incomplete or unavailable and BlueBay could assess the ESG risks of securities held incorrectly.
Investment approach
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Seeking to generate excess returns from investment decisions in global interest rates, sovereign and corporate credit and currencies based on high quality forensic proprietary research
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Strong focus on policy and politics and regulatory analysis along with more traditional balance sheet analysis
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Almost half the targeted outperformance is expected to come from bottom up sovereign and corporate credit decisions
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Decision making focussed on both long and short risk positions to be able to generate alpha in all market environments
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Strong emphasis on capital preservation means focus on total as well as relative returns
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Uses the full range of cash and derivative securities
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Disciplined risk management at every stage of investment process
Market opportunity
The Benchmark represents roughly 95% of the investible fixed-income universe, providing the optimal opportunity set to deliver performance whilst diversification improves the excess return per unit of risk to investors
The Fund takes risks in term structure, top down (beta), bottom up (alpha) credit and modest active FX
Proprietary research with a deep understanding for policy, politics and company management is key to our fundamental analysis, which combined with valuation and technical analysis, provides a comprehensive assessment for every investment opportunity
Kaspar Hense
Partner, Senior Portfolio Manager, Investment Grade
Kaspar joined RBC BlueBay in August 2014 and is a Senior Portfolio Manager within the Investment Grade team. Prior to joining RBC BlueBay, Kaspar worked for three years at Toronto Dominion Securities, in their global fixed income, capital markets group covering German clients. Previously, Kaspar spent six years with Deutsche Asset and Wealth Management where he was responsible for the global aggregate bond strategy. Kaspar began his career at Merrill Lynch in 2005 as an analyst. He holds a Master's Degree in Financial Management from a joint programme of the Christian Albrechts University of Kiel and the University of San Diego; and a Master's Degree in Economics from the Christian Albrechts University of Kiel. Kaspar is a CFA charterholder.
Malin Rosengren
Portfolio Manager, BlueBay Asset Management
Malin is a Portfolio Manager and a specialist with respect to sovereign credit and rates alpha sources. She joined RBC BlueBay in 2016 as a graduate intern before moving to work across the emerging markets and macro desks as a strategist. Malin has a postgraduate diploma in economics from the University of Warwick and a BSc in Development Studies from Lund University.