The fund has a flexible duration and is designed to take advantage of rising or falling government yields and credit spreads. It invests across global interest rates, sovereign and non-sovereign credit, as well as across currencies, utilizing cash and derivative securities, making it unique in the U.S. market. The fund is an investment option for qualified investors seeking diversification to a traditional long-only core fixed income portfolio.
Class I shares of the RBC BlueBay Absolute Return Fund are offered solely to individuals and institutions with a minimum $1 million initial investment.
The absolute-return investment strategy is also offered as an institutional separate account with a minimum investment of $250 million. The fund is sub-advised by BlueBay Asset Management, a specialist fixed-income and alternative asset manager.
The global financial crisis and current low yielding environment have caused investors to re-think traditional approaches to fixed-income portfolios, said Mark Dowding, co-head of investment grade fixed income at BlueBay Asset Management and a senior portfolio manager of the RBC BlueBay Absolute Return Fund.
“We recognized this need and are pleased to offer investors the additional choice of globally diversified fixed-income exposure through a fund focused on generating alpha and maximizing risk-adjusted returns,” Dowding said.
RBC Global Asset Management is the asset management division of Royal Bank of Canada.
More information is here.
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