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Federated broadens UK reach with double bond fund launch
by Annabelle Williams on Jan 15, 2013 at 13:30
US giant Federated Investors is seeking to build its presence in the UK market with plans to launch two bond funds.
The two fund launches form part of the firm’s plans to crack the UK, marked by the recent launch of two income funds. Federated is one of the 10 largest asset managers in the US, with around $360 billion (£220 billion) under management.
The group is planning to launch the Federated Total Return Bond and Federated Emerging Market Debt funds, replicating existing strategies in the US.
Chief investment officer Robert Ostrowski said the Total Return Bond fund was being used by investors as an alternative to the popular Pimco Total Return fund.
‘It’s a similar strategy where we are trying to add value along a few different elements. Our strategy is probably a bit more level and balanced and that is the best way to approach fixed income management.
‘What we have discovered in the US is that a number of Pimco investors have invested in this fund as well as a sort of barbell approach,’ he said.
Over the past year the US-domiciled Total Return Bond fund run by Roberto Sanchez Dahl and Paole Valle has posted a 6.25% return and has a 30-day yield of 1.96%.
The Federated Emerging Market Debt fund will launch with seeding of €25 million and invest in a globally diversified portfolio of bonds. It is run by John Gentry.
Top country weightings in the US version of the fund are currently Mexico, Venezuela and Brazil. The fund has posted a 22% return over the past year, with a 30-day yield of 3.4%.
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