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BlueBay Asset Management Review

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BlueBay Asset Management Review

BlueBay Asset Management USA, LLC

BlueBay Asset Management USA, LLC is a financial advisor firm in Stamford, Connecticut that manages nearly $12.4 billion for institutional clients. These include retirement plans, investment companies, banks, government entities and more. The firm and its 15 financial advisors perform investment advisory functions.

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 15-advisor staff at BlueBay Asset Management USA includes a few chartered financial analysts (CFAs). This is a common certification at firms like BlueBay.

What Types of Clients Does BlueBay Asset Management USA Accept?

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.

If you're an individual looking for a financial advisor in your area, you can find one with the financial advisor matching tool.

BlueBay Asset Management USA Minimum Account Size

The minimum institutional account size at BlueBay Asset Management USA is typically $100 million. However, this amount is negotiable or waivable at the firm's discretion.

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.

Disclosures

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.

Where Is BlueBay Asset Management USA Located?

BlueBay Asset Management USA has its headquarters in Stamford, Connecticut at 750 Washington Boulevard, Suite 802.

Tips for Building an Investment Portfolio

  • Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
  • Determining your target asset allocation is a great first step to setting yourself up for success in investing. If you don’t know where to begin, stop by SmartAsset’s asset allocation calculator.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research