Three Leading Ways to Go Global With Your Fixed Income Strategy

ADVISOR USE ONLY
Three Leading Ways to Go Global With Your
Fixed Income Strategy
nlock the yield opportunity in non-traditional fixed income – Global bonds
U
offer Canadian investors the potential to diversify and enhance yields.
Award-winning management – 2013 Investment Excellence Award
European Fixed Income Manager (Global Investor/ISF Investment Excellence Awards 2013).
Specialist focus – One of Europe’s leading asset managers focusing on targeted
segments of the global fixed income market and alternative investments.
onservative investment philosophy – An institutional approach
C
that emphasizes capital preservation.
BlueBay Global Monthly Income
Bond Fund
BlueBay Emerging Markets
Corporate Bond Fund (US$)
BlueBay Global Convertible
Bond Fund (Canada)
Polina Kurdyavko
Anthony Robertson
PORTFOLIO MANAGERS:
PORTFOLIO MANAGERS:
PORTFOLIO MANAGERS:
Adam Borneleit
Anthony Kettle
David Dowsett
Mike Reed
n effective way to diversify a fixed income portfolio
A
by including income from outside of Canada.
4.1% CURRENT PAYOUT RATE
PER YEAR / PAID MONTHLY1
The emerging market (EM) corporate bond hard currency universe is approximately US$1.6 trillion and is
well diversified by country and sector, with the majority
of bonds being investment grade.
• BlueBay has been investing in EM corporate bonds since 2002.
• Foreign currency exposure is typically fully hedged, with the
exception of emerging market government local currency
positions (up to 21.25% of the Fund), which can be tactically
established based on market opportunities.
• Has the ability to invest in higher-quality bonds to reduce
risk, as warranted by market conditions.
•E
M corporate bonds are issued within countries with higher
growth rates than developed markets.
•E
M corporate bonds tend to offer higher yields than similarrated corporate bonds in the developed world, but tend to
have lower leverage and simpler capital structures.
•A
minimum of 70% of the portfolio is held in emerging
market corporate debt securities denominated in U.S. dollars.
The remaining assets may be held in local currencydenominated securities.
Annualized Returns (Advisor Series, as of March 31, 2015)
BlueBay Global Monthly
Income Bond Fund
*July 2011
3 Mos.
6 Mos.
1 YR.
2 YR.
3 YR.
1.4%
1.1%
1.2%
2.7%
4.5%
Since
inception*
4.1%
Annualized Returns (Advisor Series, as of March 31, 2015)
3 Mos.
BlueBay Emerging Markets
Corp. Bond Fund (USD)
*January 2012
6 Mos.
1 YR.
2 YR.
3 YR.
1.2% -0.4% 2.5% -0.3% 2.5%
Since
inception*
3.3%
M
ike Reed
Pierre-Henri de Monts de Savasse
Convertible bonds are a hybrid security that combine
the safety of corporate bond investments with the
upside potential of equities. The bond component
provides downside protection and modest current
income, while the option of equity conversion provides
exposure to upside potential.
•C
onvertible bonds have relatively low correlation to treasury
rates. In a rising-rate environment, they tend to behave
more like equities and normally rise in value.
•A
s a convertible bond portfolio, the Fund does not typically
hold securities after their conversion into equities.
• Foreign currency exposure is typically fully hedged.
Annualized Returns (Advisor Series, as of March 31, 2015)
BlueBay Global Convertible
Bond Fund
*November 2012
3 Mos.
6 Mos.
1 YR.
2 YR.
4.8%
6.9%
7.3%
8.1%
Since
inception*
9.5%
ADVISOR USE ONLY
Three Leading Ways to Go Global With Your Fixed Income Strategy
BlueBay Global Monthly
Income Bond Fund
BlueBay Emerging Markets
Corporate Bond Fund (US$)
BlueBay Global Convertible
Bond Fund (Canada)
Assets
Income Distributions
Yield to Maturity
Modified Duration (Years)
Assets
Income Distributions
Yield to Maturity
Modified Duration (Years)
Assets
Income Distributions
Current Yield
Modified Duration (Years)
$1.35 billion
Monthly
4.55%
4.39
Credit Quality
32.7% Investment Grade
57.2% High Yield (Below BBB)
3.2% Other, Not Rated
6.9% Cash
Geographic Exposure
U.S.
Asia
Europe
Africa/Middle East
Latin America
Other
Cash
Fund Codes & MERs
Advisor ISC
Advisor Low Load
Advisor DSC
Series F
Series A
Series H
Series I
$555.0 million
Quarterly
4.55%
4.39
Credit Quality
42.8% Investment Grade
45.2% High Yield (Below BBB)
0.2% Other, Not Rated
11.8% Cash
27.2%
13.8%
24.5%
5.5%
16.4%
5.6%
6.9%
Fund Code
MER
RBF794
RBF094
RBF894
RBF694
RBF494
RBF394
RBF244
2.05%
2.05%
2.05%
1.22%
2.04%
1.92%
1.12%
Geographic Exposure
Asia
Europe
Africa/Middle East
Latin America
Other
Cash
Fund Codes & MERs
Advisor ISC
Advisor Low Load
Advisor DSC
Series F
Series A
Series H
Series I
$1.18 billion
Quarterly
1.33%
3.66
Credit Quality
34.8% Investment Grade
57.9% High Yield (Below BBB)
3.4% Other, Not Rated
3.9% Cash
28.8%
12.0%
14.1%
33.0%
0.3%
11.8%
Fund Code
MER
RBF791
RBF091
RBF891
RBF691
RBF491
RBF391
RBF240
2.10%
2.10%
2.10%
1.27%
2.10%
2.01%
1.11%
Geographic Exposure
U.S.
Asia (ex-Japan)
Europe
Japan
Cash
Fund Codes & MERs
Advisor ISC
Advisor Low Load
Advisor DSC
Series F
Series A
Series H
Series I
About BlueBay Asset
Management LLP
Based in London, UK
cquired by Royal Bank of Canada
A
in December 2010.
ne of the largest institutional
O
managers of fixed income
strategies and investment
solutions in Europe.
36.6%
22.0%
24.1%
13.4%
3.9%
Fund Code
MER
RBF790
RBF090
RBF890
RBF690
RBF490
RBF390
RBF190
2.11%
2.11%
2.11%
1.28%
2.10%
1.84%
1.01%
lueBay uses a dynamic, researchB
driven approach with an emphasis
on capital preservation and risk
management.
I nvestment process employs
bottom-up credit analysis with
input from top-down economic
research.
Series T5 and corporate class also available.
BlueBay $U.S. Global Convertible Bond Fund (Canada)
launched April 2015.
Fund data as of March 31, 2015.
For more information about BlueBay investment solutions, please contact your RBC Global Asset Management
Regional Sales Team at 1.888.770.2586 or [email protected]
Payouts may be adjusted as market conditions require; they are not guaranteed. The calculation for Payout Rate (%) = (monthly distribution (cents/unit) x 12 months) / previous
year December 31 NAV. The current monthly distribution is 3.35 cents/unit.
1
Please consult your advisor and read the prospectus or Fund Facts document before investing. There may be commissions, trailing commissions, management fees and expenses
associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated. The indicated rates of return
are the historical annual compounded total returns for the periods ended March 31, 2015, including changes in unit value and reinvestment of all distributions, and do not take into
account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. BlueBay Funds are offered by RBC Global
Asset Management Inc. and distributed through authorized dealers. BlueBay Asset Management LLP, a direct wholly-owned subsidiary of Royal Bank of Canada, is the investment
sub-advisor of BlueBay Funds.
®/
TM
Trademark(s) of Royal Bank of Canada. Used under licence. © RBC Global Asset Management Inc. 2015
102569 (04/2015)
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