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BlueBay sees renewed credit appetite

INDEPENDENT fixed-income fund manager BlueBay Asset Management said yesterday that investors had flocked to the credit markets over the past quarter as assets under management soared 10 per cent higher.

Assets under management at the group beat analyst forecasts as they rose to $34.3bn (£21.3bn) over the three months to December, boosted by net inflows of $3.1bn.

BlueBay said it had seen strong net inflows of around $2.8bn into investment grade paper, and sees demand spreading into high yield, emerging markets, convertibles and distressed debt as investor risk appetite returns during the economic recovery.

“The second quarter of the financial year has been similar to the first: characterised by robust asset inflows and strong investment performance from BlueBay’s fund platform,” said chief executive Hugh Willis.

“We look forward to the new calendar year with optimism. It will bring challenges: an uncertain macroeconomic outlook will require constant monitoring; and accurate credit selection will be at a premium.”

Numis analyst Gurjit Kambo said: “We believe BlueBay remains in a good position relative to less focused competitors.”