25 APRIL 2019: Merian Global Investors has announced that it has today insourced the Ireland-domiciled $195.5 million¹ Merian Total Return USD Bond Fund.
The fund, which was previously managed by Janus Henderson, with Bill Gross as fund manager until February this year, has been handed to Merian Global Investors’ Mark Nash and Nick Wall and renamed the Merian Global Dynamic Bond Fund.
While the fund’s objective (to seek to maximise total return consistent with preservation of capital and prudent investment management) is unchanged, Merian Global Investors will introduce a number of changes to the investment approach, including:
- An expanded global investment remit, with the restriction that a minimum of 80% of assets must be held in US dollar denominated fixed-income securities removed
- The reference benchmark moving from the Barclays Capital US Aggregate Bond Index to the Bloomberg Barclays Global Aggregate Index (USD hedged) to reflect the fund’s broader geographic reach
- Additional scope to invest in a wider range of securities, including an increased amount of below investment grade corporate bonds, contingent convertible bonds and collective investment schemes
Merian Global Investors believes these changes will result in a more flexible fund that allows investors to benefit from the best investment opportunities from across the global fixed income and currency universes. The fixed income team at Merian Global Investors has significant experience running diversified bond funds; utilising a top-down approach, the team establishes a macro view and then populates broad themes with sector specialist “best ideas”. The fund managers adopt a stringent risk budgeting technique to ensure risk is spread across positions in line with their conviction in order to hit a fund’s targets in the most risk efficient manner possible.
Mark Nash, head of fixed income at Merian Global Investors comments:
“With the recent change in the policy direction of developed market central banks having a profound impact on fixed income markets, we believe now is an opportune time to expand the investment universe and flexibility of this fund. Using the sector-specialist skills from across the desk and our strict risk governance framework, we look forward to identifying the best alpha opportunities for clients.”
Warren Tonkinson, managing director, distribution at Merian Global Investors adds:
“We are confident that, following these changes, investors in the fund will benefit from our proven-team based approach, as well as its expanded investment universe.
“We’d like to thank Janus Henderson for running the fund until now.”
¹ As at 31 March 2019