MFS Investment Management has allocated $17.5 million of its premium income fund to Mellon Global Investments’ global bond alpha trust.

The fund, a long/short fund that buys and sells global fixed income securities, cash and currencies, aims to produce pure bond and currency alpha. James Gruver, managing director of Mellon Global Investments Australia said at June 30, the fund was positive on Australian bonds but not Australian currency, and looked favourably on both UK & US bonds and currency. The appointment of Mellon, made with the assistance of Mercer Investment Consulting, was due in part to its well diversified portfolio in terms of asset security and sub-sector characteristics, according to chief executive of MFS, Guy Hutchings. MFS’s premium income fund has total assets of $820 million, with about $140 million in the fixed interest sector. Other managers in the multi-manager strategy include Principal Global Investors for global corporate bonds, Hastings Funds Management for infrastructure debt; and Babcock & Brown for higher yielding private loans and debt securities.

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