Swiss-based asset manager GAM has unveiled a new Dublin-domiciled Ucits fund that will invest in US mortgage-backed securities (MBS).
Known as GAM Star MBS Total Return fund, the Ucits-compliant strategy will be managed by Gary Singleterry and Tom Mansley, who joined GAM in June 2014 following its acquisition of Singleterry Mansley Asset Management.
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The fund will invest in US asset-backed securities, mainly residential mortgage-backed securities (RMBS), such as those issued by government agencies or by non-agency entities.
In addition, it aims to deliver an annual return of between 4% and 6% above the return available from cash by investing in US asset-backed securities.
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."
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