Managing Partners Group (MPG) has launched a new fund to invest in a diversified portfolio of fixed income and high-yield debt securities.
The Melius Fixed Income Fund aims to give institutional and high-net-worth investors long-term, absolute returns from a blend of investment grade bonds, high-yield debt and listed and unlisted asset-backed securities. MPG said the fund will combine low volatility and low correlation to global markets, with steady returns.
MPG chief executive officer, Jeremy Leach, commented: “The assets in which this fund invests will typically have attractive yields of 5-6% per annum as well as the security of first call on the underlying assets. This is very attractive at a time when investors are fearful that bull runs in both equity and bond markets could soon end as monetary policy tightens in developed markets.” Leach added: “Free from the constraints of a benchmark or significant sector or instrument limitations, the management team will draw on its expertise and industry contacts to source highly attractive assets from across the debt securities market to generate alpha performance and preserve capital.”
The fund is set up as an open-ended mutual fund and is available in sterling, as well as other major currencies. It is domiciled offshore, in the Cayman Islands. MPG currently has assets under management of $500 million.