Swiss asset manager Gam has launched a Dublin-domiciled Ucits fund investing in US mortgage-backed securities (MBS).
The Gam Star MBS Total Return fund will be managed by Gary Singleterry and Tom Mansley, who joined Gam in June 2014 when the firm bought their boutique, Singleterry Mansley Asset Management.
The fund will be based on an investment strategy that the duo has been running for institutional clients for 12 years.
In that period the strategy has delivered an average annual return of 13.7 per cent, compared to the benchmark return of 4.8 per cent, according to Gam.
The fund will aim to deliver an annual return of between 4 per cent and 6 per cent above the return available from cash by investing in US asset-backed securities, particularly residential MBS.
