Merganser Capital Management, an institutional fixed income manager with over USD7bn in assets under management, has launched a Floating Rate Bond Strategy for institutional investors.
The strategy is designed to benefit from rising interest rates while maintaining an overall investment grade credit quality and using a well-diversified investment approach.
The strategy is available as a separate account and in a commingled fund for accredited investors.
“Many investors are looking for a fixed income investment strategy to prepare for an eventual rise in rates. And many of these investors require that the strategy be investment grade and well diversified with attractive yield and liquidity characteristics,” says Douglas Kelly, chief executive and co-chief investment officer of Merganser.
“Our Floating Rate Bond Strategy approach is different than a floating rate bank loan strategy. Those strategies are also designed to benefit from rising rates but generally have much higher risk characteristics,” says Andrew Smock, president and co-chief investment officer of Merganser. “By contrast, our strategy generally uses investment grade cash bonds across a variety of sectors. Our clients and many of their consultants are asking for this approach as an alternative to low yielding money market funds or as a way to help protect their gains during a rebalancing of risk in their overall portfolios.”
John C Clavin has re-joined the firm as executive vice president responsible for business development. Before joining Merganser in 2006, Clavin was an executive vice president at Standish Mellon Asset Management and a senior vice president at The Boston Company Asset Management.