Fund In Focus: BlueBay Global Sovereign Bond (Canada)

This diversified fund is backed by a strong group and a sound process.

Ruth Saldanha 18 October, 2023 | 4:28AM
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This fund is a part of the latest Morningstar Prospects. Read more about Morningstar Prospects here.

Three-star, gold-rated BlueBay Global Sovereign Bond (Canada) is a fixed income fund that invests primarily in fixed income securities issued by sovereign governments and entities (including emerging market countries) anywhere in the world. According to the fund factsheet, the fund uses detailed country analysis (economic growth, inflation, fiscal and monetary policy), and may also invest in corporate debt securities globally.

It is intended for investors who are seeking a combination of current income and modest capital growth potential, want to diversify their fixed-income holdings geographically by adding international bonds to their overall portfolio, and are planning to hold their investment for the medium-to-long term.

The fund came to Morningstar analysts Michael Dobson and Danielle LeClair’s attention because of its strong investment team led by CIO Mark Dowding. They point out that the fund earns a High People Pillar rating on other analyst-covered strategies from Morningstar analysts.

So far in 2023, the BlueBay Global Sovereign Bond (Canada) has lost 1.28%. It has underperformed its index, which has lost 1.01%. The $1.8 billion fund has a management expense ratio of 0.71%.

Growth of $10,000 

Why is BlueBay Global Sovereign Bond Fund Worth Considering?

The BlueBay Global Sovereign Bond (Canada) fund strategy uses fundamental and macro research to invest in sovereign government debt. Dowding and Kaspar Hense have managed it since its 2016 inception.

“A proprietary model frames investment recommendations and results in a highly active, high-conviction portfolio that has delivered alpha over time. The fund's geographic exposure sets it apart. It has almost 28% less in Canadian bonds and more than 20% more in emerging-markets bonds than its peer group's average,” Dobson and LeClair write.

They point out that the team has distinguished itself in a variety of areas, such as duration management, relative value plays, directional calls in sovereign credit, and active currency trades.

“The depth of expertise, proprietary country research, and flexible portfolio construction bodes well for the fund,” they say.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
BlueBay Glb Sovereign Bond (Can) D8.52 CAD0.16Rating

About Author

Ruth Saldanha

Ruth Saldanha  is Editorial Manager at Morningstar.ca. Follow her on Twitter @KarishmaRuth.

 
 
 

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