Brown Advisory has launched the Brown Advisory Tactical Bond Fund, a fund focused on total return that, using a quantitative modeling process to track macro movements in bond sectors, will invest in fixed-income products including tax-exempt municipal bonds, corporate bonds, U.S. Treasury bonds, Treasury inflation protected securities and cash equivalents.

Through derivatives, the fund can also invest in these securities on a long or short basis. It will not be constricted by and one index.

“Investors look to the fixed income component of their portfolios for income, return generation and diversification from equities,” said Paul J. Chew, head of investments at Brown Advisory. “With yields in the bond market historically low, Brown Advisory believes the return potential of funds with a traditional fixed income approach is limited. Our strategy seeks to generate returns without relying on income generation or declining interest rates. We believe this is a solid solution in today’s market environment and a value-added product for our clients.”

Thomas D.D. Graff, manager of the fund, added: “We have taken quantitative trading models developed over several years and utilized in our traditional fixed income strategies and combined them into a single, focused investment strategy. The result, we believe, is an approach with a great opportunity for success and a relatively low correlation to both the stock and bond markets.”

-- This article first appeared on Money Management Executive.



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