BlueBay Asset Management Review
This is a fee-only firm, which means that it receives client-paid fees as its sole form of compensation. This differs from a fee-based firm, which receives commissions and other types of compensation in addition to standard fees.
BlueBay Asset Management USA Background
BlueBay Asset Management USA opened in 2006. It is the American arm of BlueBay Asset Management, LLP, a London-based investment management firm with branches in Europe, Australia and Asia that manages fixed-income assets. BlueBay is, in turn, a subsidiary of the Royal Bank of Canada (RBC).
The staff at BlueBay Asset Management USA includes a few chartered financial analysts (CFAs). This is a common certification at firms like BlueBay.
BlueBay Asset Management USA Client Types and Account Minimums
BlueBay currently doesn't manage assets for individual clients, regardless of whether or not they have a high-net-worth. Instead, the firm is institutionally-focused, so it works with a collection of around 130 banking institutions, investment companies, business development companies, pooled investment vehicles, pension and profit-sharing plans, government entities, insurance companies and other RBC-affiliated entities.
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The minimum institutional account size for a segregated account at BlueBay Asset Management USA is typically $100 million. However, this amount is negotiable or waivable at the firm's discretion. Each pooled investment vehicle will also have a minimum investment, published in the fund's prospectus.
Services Offered by BlueBay Asset Management USA
BlueBay Asset Management USA offers investment management services. The firm mainly utilizes fixed-income investment strategies that deal in investment-grade debt, convertible bonds, emerging markets, high-yield bonds, private debt and multi-asset credit.
BlueBay Asset Management USA Investment Philosophy
As a firm, BlueBay Asset Management USA uses six distinctly different fixed-income-centric portfolio strategies. Here's a breakdown of each:
- Convertible bonds: These are fixed-income debt securities that pay interest. The firm uses them to provide solid return without increased volatility.
- Emerging markets: These developing markets can present good investment opportunities. The firm invests in both corporate and soverign debt in emerging markets.
- Investment-grade: This kind of debt is typically low-risk and can provide significant and consistent returns for an investor's portfolio. Invesment-grade debt is unlikely to be defaulted upon.
- Leveraged finance: Investing in levered and speculative companies can provide excellent return. BlueBay researches to try and ensure that your portfolio utilizes leveraged finance in a low-risk manner.
- Multi-asset credit: BlueBay believes in diversification, and multi-asset credit helps it accomplish this. By investing in a wide range of credit instruments, the firm helps capture this risk premiums for investors.
- Private debt: The firm primarily works with private debt by offering loans to European companies.
Fees Under BlueBay Asset Management USA
For the most part, the fee structure for institutional accounts managed by BlueBay Asset Management USA is subject to negotiation and change on a client-to-client basis. Investment fund management fees are more exact, though, and they can be as high as 2.00% of the fund's overall net asset value (NAV). Performance-based fees on these accounts range from 10% to 30% of the firm's overperformance according to a preset benchmark.
What to Watch Out For
BlueBay Asset Management USA does not work with individual clients or offer financial planning services. This is because the firm chooses to focus on managing the investments of institutional clients. So if you're an individual or are in search of a financial plan, try using SmartAsset's advisor matching tool to find up to three suitable financial advisors in your area.
BlueBay Asset Management USA does have two disclosures listed on its Form ADV, but neither implicate the firm directly. This is because both disclosures relate to the Royal Bank of Canada, the firm's parent company.
Opening an Account With BlueBay Asset Management USA
Institutional clients looking to open an account with BlueBay Asset Management USA can reach out to the firm's contacts - director Tomas Martin and associate client director Jocelyn Stone - by phone or email. For general inquiries, you can also call the firm's main U.S. office at (203) 541-4300.
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