Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

GAM buys bond boutique for MBS launch

GAM buys bond boutique for MBS launch

GAM has bought a specialist bond boutique that runs a strategy that hasn't experienced a negative year since launch in 2002, as the group diversifies into asset-backed securities.

GAM’s deal to acquire Singleterry Mansley Asset Management, and its founders Gary Singleterry and Tom Mansley, is expected to complete later this month.

Singleterry Mansley currently manages £236 million and specialises in collateralised mortgage obligations and asset-backed securities.

The team’s flagship strategy, which uses no leverage, has generated net annualised returns of 13.7% from inception in October 2002 to the end of April 2014, with positive returns in every calendar year – surviving even the US housing and financial market crash in 2007-08.

GAM intends to launch a Ucits fund based on their strategy in the third quarter of 2014, while Singleterry and Mansley will also contribute to GAM’s existing £10 billion unconstrained and absolute return bond funds.

‘Gary Singleterry and Tom Mansley are enormously experienced and successful investors,’ commented GAM’s group chief executive David Solo.

‘Their ability to navigate the severe market stress in 2007-08 and produce strong positive returns speaks for itself. In particular, they share our group’s commitment to a disciplined investment process based on deep analysis, combined with unconventional thinking.’

Mansley added: ‘The US market for mortgage-backed securities has been in a slow recovery mode over the past six years. Housing prices have improved, but remain affordable and mortgage underwriting standards became much stricter.

‘The dominance of government-guaranteed issuance allows us to invest in a diverse universe of structured securities, and while private residential mortgage-backed securities issuance remains subdued, the secondary market for non-agency debt is highly attractive.

‘Overall, this asset class offers interesting return opportunities and we look forward to making them accessible to a new and broader set of investors around the world.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: the opportunities in UK challenger banks

Brewin's Gutteridge: the opportunities in UK challenger banks

In this week's podcast, Brewin Dolphin's Ben Gutteridge and Guy Foster, discuss opportunities in the global financials sector with Aptus' Johnny De La Hey.

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Brewin's Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Your Business: Cover Star Club

Profile: how Close Brothers gave power back to the regions

Profile: how Close Brothers gave power back to the regions

Almost a year into the role, Close Brothers Asset Management head of wealth management Andy Cumming has highlighted three keys areas of focus

Wealth Manager on Twitter