Columbia Management has hired the TCW Group to sub-advise one portion of a newly-launched multi-manager bond fund, Columbia Active Portfolios Multi-Manager Core Plus Bond Fund (CMCPX).
Launched on April 20, the Multi-Manager Core Plus Bond Fund allocates assets among different assets managers that apply multiple investments styles to bonds and other debt securities. Columbia and each of the fund’s sub-advisers will provide day-to-day management over a portion, or sleeve, of the fund.
In the case of TCW, this sub-adviser will manage a "core plus" sleeve of the fund allocating capital amongst various sectors of the fixed-income markets, including U.S. government, corporate, high yield and mortgage-backed sectors. In addition, exposure to international and emerging markets fixed-income assets will be opportunistically incorporated into the portfolio. The initial investment in the TCW-managed portion of the fund will be approximately $1 billion.
Another fund sleeve will be sub-advised by Federated Investment Management Company.
"We believe TCW's unique capabilities across fixed-income sectors, from high yield to mortgages to emerging markets, will help make this Fund an attractive option to Ameriprise Financial clients," said TCW chief executive Marc Stern, in a statement. "We have great respect for Columbia Management and Ameriprise Financial, and we are pleased to expand our relationship through the sub-advisory of this new fund."
The fund will charge a management fee of 47 basis points.
It is offered by Ameriprise Financial in its Active Diversified Portfolios investments series, a discretionary mutual fund wrap program.