Multi-manager group SEI has combined its US and European institutional bond funds to create a global...
Multi-manager group SEI has combined its US and European institutional bond funds to create a global bond offering.
Available for pension funds, SEI has chosen two managers, Fischer Francis Trees & Watts and Alliance Capital Management, to run the merged portfolio, Global Bond Strategy.
According to the group's research, global bond managers tend to concentrate on either directional, such as currency and country decisions, or more opportunistic, such as sector and issue decisions to generate outperformance.
By combining the two approaches, SEI's global bond portfolio aims to offer investors a more efficient and diversified exposure to global bond markets.
The Global Bond Strategy will be managed by SEI's fixed income research team, led by James Martielli and Rodney Gaskell in London.
Martielli said: 'Worldwide, there has been a trend away from global bond indices that represent only sovereign bonds, towards global aggregate indices that include corporate bonds and mortgage-backed securities.
'SEI's Global Bond Strategy has always invested in corporate and mortgage-backed securities through a specialist US manager. However, with the growth of the credit markets outside the US and the development of global aggregate investment approaches, we enhanced the strategy to better exploit the broader range of return opportunities now available.'
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