Merian Global Investors has decided to insource its Total Return USD Bond Fund following the retirement of bond veteran Bill Gross.
As part of Janus Henderson, Gross managed the $195.5m (£151m) fund until earlier this year, when he retired from investment management.
Merian has announced this morning that the fund will not only be managed internally by Mark Nash and Nick Wall, but will also be renamed the Merian Global Dynamic Bond Fund in a change of investment strategy.
Merian is removing the current restriction that 80 per cent of assets must be held in US dollar denominated fixed income securities in a bid to expand the fund’ global remit.
It is also granting scope to invest in more corporate bonds that are below investment grade, as well as a wider pool of securities like contingent convertible bonds and collective investment schemes.
Merian Global Investors head of fixed income Mark Nash says: “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.”
Merian Global Investors managing director of distribution Warren Tonkinson says:“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.”