A U.S. fund manager is tentatively planning a fund that will gain market exposure solely via fixed-income swaps. The new fund would be managed by the same Pittsburgh-based professionals who run Lumin Asset Management, which advises equity fund Long Term Global Equities. An official close to Lumin said the fund will launch in about six months, pending legal and regulatory approval. The vehicle has not yet been named. The official declined to elaborate on what derivatives strategies the fund might use or why now is a good time to consider launching such a fund. The official said that an advantage of fixed-income swaps is that they provide access to fixed-income cash flows not directly available in the bond market.
The USD28 million Long Term Global Equities fund invests solely in cash equities.