GMP Offers ABCP Fund

Date: Monday, January 24, 2011
Author: Advisor.ca

GMP Investment Management has launched a new limited partnership fund based on Canada’s restructured asset backed commercial paper, the assets at the heart of the 2007 ABCP crisis. GMPIM has traded over $2 billion (face value) in restructured ABCP through its GMP Diversified Alpha Master Fund since April of 2008, and the new Canadian ABCP Fund LP builds on that expertise. “Asset backed commercial paper is poorly understood in the market, which creates an opportunity for GMPIM, with its specific expertise and trading experience,” says Greg Foss, the Canadian ABCP Fund’s portfolio manager. “Investors can take comfort in knowing that the Master Asset Vehicles in which we invest are backed by asset pools that have high credit ratings and multiple levels of protection.” He says the fund is targeting a return of 9% per annum, substantially higher than the 4.0% investors can expect from an investment grade corporate bond index.