GE Asset Management is considering rolling out emerging market debt and bank loan strategies. GEAM manages a small portfolio of bank loans and it has been managing emerging market debt for the past 12 months as part of its core-plus strategy. Jack Boyce, senior v.p. of institutional investment services, said the firm is getting to grips with market demand for these asset classes, assessing how it can meet that demand and considering launching specialist strategies.
Kathy Karlic, cio of fixed-income, said in a rising rate environment bank loans are especially attractive because they could dampen the duration effect on a portfolio. The firm in Stamford, Conn., has grown its assets by 20% for the past five years and it is boosting the marketing of its fixed-income strategies to bolster growth. GEAM manages $84 billion in fixed-income portfolios for insurers and $17 billion in total return fixed-income, which includes the assets of the principal GE pension plans.