Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration 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
Play Citywire Scotland: how wealth managers use new tech

Citywire Scotland: how wealth managers use new tech

We caught up with a few wealth managers at our annual event in Gleneagles to find out what technological innovations they are employing across their businesses.

1 Comment Play CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

Do not miss the first two minutes of this film as Richard Buxton shares how he has been challenged by a client for owning shares in a certain company.

Play CEO Tapes: the huge opportunities for asset managers

CEO Tapes: the huge opportunities for asset managers

From tech disruption, retirement and poaching, the CEO discuss the opportunities for their businesses in this episode.

Read More
Wealth Manager on Twitter