Blue Bay Asset Management
BlueBay to wind down Emerging Market Total Return Fund
BlueBay Asset Management PLC said it plans to wind down its Emerging Market Total Return Fund, after the fund lost approximately 53 percent of its value in the year to date as of November 21.
The fund has run a relative value strategy in emerging markets fixed income since 2003, but financing and liquidity conditions have deteriorated dramatically in the markets in which it operates.
With such conditions likely to persist, the fund is not viable as a standalone strategy. As of September 30, the fund represented 23 percent of BlueBay's long/short assets under management and 6 percent of its overall assets under management.
Its closure will mean that long/short fund revenues for the current year are likely to be below market expectations.
BlueBay further announces that Simon Treacher, portfolio manager of the fund, has resigned following a breach of internal valuation policy. The breach was recent, limited and resulted in no material impact on the NAV of the fund, or of any other funds managed by the company. There is no connection between the breach concerned and either the recent losses incurred on the fund or the intention to wind the fund down, it said.
Chief executive Hugh Willis said: "While we regret these developments, we should like to stress that they do not affect in any way our commitment to emerging markets - which remains a core area of specialization for the company.”
Register here to be notified of future Blue Bay Asset Management articles.