BlueBay Asset Management says that at 31 December 2008 its estimated assets under management amounted to USD16.7bn – a decrease of 18.4 per cent since 30 September 2008.
BlueBay Asset Management says that at 31 December 2008 its estimated assets under management amounted to USD16.7bn – a decrease of 18.4 per cent since 30 September 2008.
This reflects net redemptions of USD0.8bn, market depreciation of USD2.8bn and an exchange rate loss on translation of non-US Dollar denominated assets of USD0.2bn.
Performance fees, accrued on a financial accounting basis, for the second fiscal quarter are estimated to be GBP3.2m, bringing the estimated performance fees accrued on the same basis for the six month period ended 31 December 2008 to GBP8.1m.
As previously disclosed, the company may use short-term forward FX contracts to hedge its future US Dollar and Euro denominated revenues.
The company has entered into forward FX contracts in order to hedge approximately 50 per cent of its estimated total management fees for the fiscal year 2009 at an average rate of GBP1:1.75 US Dollars and GBP1:1.25 Euro respectively.
Hugh Willis, BlueBay’s chief executive officer says: "Conditions in global markets continued to be very testing during the fourth calendar quarter of 2008; with unprecedented index declines seen in credit markets. Against such a background, it is encouraging that we saw net outflows over the quarter of only USD0.8bn; giving the company overall net inflows of USD1.2bn in the July to December period.
‘It is also encouraging that these net inflows were accompanied and augmented by the successful launch of two new funds in the October to December quarter – the BlueBay High Income Loan Fund and the BlueBay Global Convertible Bond Fund. Current volatile market conditions make it difficult accurately to forecast a particular level of net inflows for the full financial year. The company remains well placed, however, to take advantage of the exceptional cyclical opportunity in credit markets which we continue to believe will begin to emerge during 2009."
The company will announce its interim results in respect of the six months ended 31 December 2008 at 0700 hours on Thursday 26 February 2009.
