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.
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."