Profit warning as BlueBay winds up fund

The fixed-income hedge group BlueBay Asset Management lost 30 per cent of its value yesterday after saying its full-year profit would be lower than expected because it was closing one of its emerging market funds.

The fund's manager, Simon Treacher, had also resigned after a breach of BlueBay's internal valuation policy, the company said, adding the breach was limited, had not resulted in any material impact on the net asset value of the fund and was not connected to BlueBay's losses or the fund's closure.

Information had been passed on to the Financial Services Authority, which was looking into the matter, said a person close to the situation.

The $177m (£115m) EM Total Return fund had lost 53 per cent of its value in the year to 21 November, when it accounted for 6 per cent of the company's assets under management. BlueBay had about $20.5bn worth of assets under management at 30 September.