RBC acquires BlueBay Asset Management

Blue_bay_RBC_410Royal Bank of Canada is to acquire BlueBay Asset Management for around £965m (€1.1bn), subject to regulatory approval.

BlueBay is one of Europe’s largest independent managers of fixed income debt funds and products, with US$40bn (€28.8bn) in assets under management, as at September 30, 2010, on behalf of institutional and high net worth investors in the UK, Europe, the U.S., the Middle East, Asia and Australasia.

Following the acquisition, BlueBay will retain its investment autonomy and related operational independence following the acquisition. Based in London, BlueBay manages a combination of long-only and alternative investment strategies across the sub-asset classes of fixed income credit – primarily focused on European and emerging markets strategies – including: investment grade corporate debt, high yield corporate debt, emerging market debt, convertible bonds, distressed debt, and multi-strategy debt capabilities.

George Lewis, group head, RBC Wealth Management, said: “This acquisition will further RBC’s strategy to leverage our position as a global wealth manager, and continue to expand our asset management solutions for the benefit of our clients around the world.”

In September, RBC Wealth Management had announced it will be moving from three geographic wealth management businesses to four (Canada, United States, UK and emerging markets), aiming to replicate the success achieved in the ultra high net worth segment in Canada across international markets.

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