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Houston Investor Plans Tailored Products

21 Oct 2004

Smith, Graham & Co. Asset Management has recently begun offering more tailored solutions for its investors such as asset/liability management.

Cyril Theccanat

Smith, Graham & Co. Asset Management has recently begun offering more tailored solutions for its investors such as asset/liability management. The offerings come in addition to its traditional broad market products which use benchmarks such as the Lehman Brothers Aggregate Bond Index and the Lehman Brothers Government Credit Index, said Cyril Theccanat, executive v.p. and managing director of fixed income at the Houston-based manager. "We're offering additional products that deal with customized benchmarks, which would be used in cases such as asset/liability management," he stated.

For example, Theccanat added he recently dealt with a corporate client, whom he declined to reveal, that was setting aside too much cash for operating costs and other obligations. Smith, Graham's tailored fixed-income product will take into account a company's capital investment and spending needs while at the same time allowing the investor to increase its return, he added, noting the customized portfolios will invest across fixed-income classes. Smith, Graham is in the process of pitching the new product to prospective clients, such as endowments and public funds, and does not have a specific target for assets.

Other firms are also getting into the act. Ronald Ryan, former president of Ryan Labs, recently started a fund to address asset/liability needs through his fund Ryan Asset Liability Management (BW, 7/26).

Theccanat started at Smith, Graham last month from U.S. Trust (BW, 9/6). With $2.3 billion under management and the potential to raise assets, Jamie House, executive v.p. and chief operating officer, said the fund is looking to hire a new credit analyst. "We're looking for a generalist with a specialty in two or three sectors, like industrials or finance, and somebody with experience looking at triple-B names," Theccanat added.

21 Oct 2004