BlueBay Asset Management Debuts New ESG-Themed Fixed Income Fund

Feb 13 2017 | 6:13pm ET

BlueBay Asset Management has unveiled a new UCITS-compliant fixed-income fund that will focus on environmental, social and governance factors. 

The new fund, named the BlueBay Global High Yield ESG Bond fund, will be a parallel vehicle to the company’s existing BlueBay Global High Yield Bond fund, according to an article in Citywire. It will reportedly be managed by Bluebay leveraged finance co-heads Justin Jewell and Thomas Kreuzer and is the result of a mandate from €2.4 billion Norwegian health pension fund PKH.

The new fund will be domiciled in Luxembourg, the article said, and passported for sale in Luxembourg, Norway, and Switzerland. It was launched in response to increased demand for fixed-income products with greater emphasis on ESG criteria, the Citywire article said. In prepping for the launch, Bluebay reportedly worked with global investment consultant Mercer and PKH in order to craft a strategy focused on high yield bonds as an asset class while also adhering to an ESG overlay. 

ESG criteria have been increasingly cited as important by fixed-income investors with long-term liabilities such as pension funds, as they can impact returns over multiple cycles. 

Headquartered in London, BlueBay Asset Management is a global fixed income asset manager wholly owned by Royal Bank of Canada within its RBC Global Asset Management group of businesses. It manages more than $53 billion for institutions and high net worth individuals invested across the global fixed income spectrum, from active long-only portfolios to hedge funds and private debt. The firm has operated an ESG investment framework since 2013.

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