iamond Hill has launched its Strategic Income Fund
to meet demand from high-net worth and retired investors for solid, income generating funds. Managing Director Kent K. Rinker
, who came on board in May, will run the Columbus, Ohio-based firm's sixth mutual fund and second bond fund.
The fund is expected to generate current income by investing in such securities as corporate bonds, preferred stocks, real estate investment trusts, mortgage-backed securities and Treasury bonds. It aims to maintain an average credit quality of investment grade. The fixed-income component targets duration of 5-7 years.
"With the continued volatility and negative returns in the stock market, many investors are realizing that fixed income must be a part of their investment portfolio," said Rinker, who has managed fixed-income portfolios for more than 30 years. "We believe this fund can serve as an important component of an investment plan by investing in a variety of securities with a focus on generating income."
Rinker, who was recruited by the firm to take advantage of the strong interest in bond funds, does not expect Diamond Hill to launch any other new fixed-income funds in the near future.
He joined Diamond Hill in May after managing Rinker & Co. Investment Management & Consulting
for more than 10 years. He was also a founding partner and manager of fixed-income sales and trading at Meuse, Rinker, Chapman, Endres and Brooks
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