Part of its GAM Star Dublin domiciled fund range, the MBS Total Return Fund is managed by Gary Singleterry and Tom Mansley, who joined GAM in June 2014 as part of the acquisition of Singleterry Mansley Asset Management.
The fund will invest in mortgage backed securities (MBS) assets, mainly residential MBS issued by both US government agencies and by non-agency entities. GAM said “in the current environment”, it will aim to deliver returns of the three-month Libor rate +4% to +6% per annum.
Fund manager, Mansley said: “The US market for mortgage-backed securities has been in a slow recovery mode over the past six years. It constitutes a highly liquid, diversified market with $7trn in assets and accounts for more than 30% of the US fixed income market.
“Our experience shows that the asset class is suited to virtually every stage of the economic cycle. We believe that in addition to careful security selection and portfolio construction, the key to successful investing lies in anticipating and positioning for changes in the interest rate, prepayment and credit environment.”
The UCITS-compliant fund launched on 23 July and is registered for sale in, Austria, Belgium, France, Germany, Ireland, Liechtenstein, Luxembourg, Norway and the UK.
