Key Takeaways
- • RBC Global Asset Management launched the RBC BlueBay Enhanced Income Fund on June 8, 2026, a closed-end interval fund providing U.S. investors access to collateralized loan obligations (CLOs) and structured credit securities classified as alternative investments.
- • The fund is an actively managed portfolio primarily investing in equity and junior debt tranches of CLOs backed by corporate loans rated BB and B, with geographic focus on U.S. markets and flexibility to allocate to European CLOs.
- • The fund expands RBC GAM's alternative investment product offering to intermediary and wealth management clients, democratizing access to alternative credit markets traditionally reserved for institutional investors.
- • The RBC BlueBay Enhanced Income Fund is managed by portfolio managers Mark Shohet, Ajeet Atwal, and Sid Chhabra from BlueBay's Securitized Credit and CLO Management team, leveraging the platform's institutional expertise in fixed income.
- • RBC's leadership expects continued adoption of semi-liquid interval fund structures in the U.S. market, positioning them as a significant growth area for the firm's U.S. alternative investment business.
Summary
RBC Global Asset Management (U.S.) Inc. announced the launch of the RBC BlueBay Enhanced Income Fund on June 8, 2026, marking an expansion of the firm's alternative investment product suite for intermediary and retail investors. The new closed-end interval fund provides U.S. investors with access to structured credit markets, specifically collateralized loan obligations (CLOs), which have historically been concentrated in institutional portfolios.
The fund operates as an actively managed vehicle primarily investing in equity and junior debt tranches of CLOs. These CLO tranches are bond securities backed by pools of corporate loans carrying BB and B credit ratings, offering higher return potential relative to senior tranches but with greater complexity and risk characteristics that qualify them as alternative investments. The fund maintains a regional focus predominantly on U.S. CLOs while maintaining flexibility to allocate capital to European CLO opportunities.
The investment strategy seeks to generate total return primarily through income generation, according to Donald Sanya, CEO of RBC Global Asset Management-U.S. The fund targets a market segment where alternative assets have become increasingly important sources of yield and portfolio diversification. The closed-end interval fund structure—which guarantees quarterly liquidity of up to 5% of fund assets—enables the firm to offer semi-liquid alternative exposure to investors who previously lacked practical access to such vehicles.
The RBC BlueBay Enhanced Income Fund leverages the institutional expertise of BlueBay's Securitized Credit and CLO Management team, with portfolio management responsibility assigned to Mark Shohet, Ajeet Atwal, and Sid Chhabra. RBC's management team indicated confidence in the continued adoption of interval fund structures, viewing them as a significant growth vector for the firm's U.S. alternative investment business going forward.
The fund operates as an actively managed vehicle primarily investing in equity and junior debt tranches of CLOs. These CLO tranches are bond securities backed by pools of corporate loans carrying BB and B credit ratings, offering higher return potential relative to senior tranches but with greater complexity and risk characteristics that qualify them as alternative investments. The fund maintains a regional focus predominantly on U.S. CLOs while maintaining flexibility to allocate capital to European CLO opportunities.
The investment strategy seeks to generate total return primarily through income generation, according to Donald Sanya, CEO of RBC Global Asset Management-U.S. The fund targets a market segment where alternative assets have become increasingly important sources of yield and portfolio diversification. The closed-end interval fund structure—which guarantees quarterly liquidity of up to 5% of fund assets—enables the firm to offer semi-liquid alternative exposure to investors who previously lacked practical access to such vehicles.
The RBC BlueBay Enhanced Income Fund leverages the institutional expertise of BlueBay's Securitized Credit and CLO Management team, with portfolio management responsibility assigned to Mark Shohet, Ajeet Atwal, and Sid Chhabra. RBC's management team indicated confidence in the continued adoption of interval fund structures, viewing them as a significant growth vector for the firm's U.S. alternative investment business going forward.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.