MacBank acquires US-based fixed income specialist

Macquarie Bank Funds Management Group has acquired a majority shareholding in United States-based fixed income fund manager Allegiance Investment Management in an effort to strengthen its fixed income capabilities globally.

According to Macquarie, the acquisition of the boutique investment firm, which has about $4.5 billion in assorted fixed income products, is not material to the bank in terms of capital but rather intended to broaden the scope of its funds management business.

“Allegiance is a well-regarded specialist fixed income firm and this partnership provides us with a platform to build a broader fixed income capability for our clients in one of the world’s largest fixed income markets,” said Macquarie Funds Management Group head Ben Bruck.

“Allegiance will complement our existing fixed income operations in Sydney and London.”

Allegiance, which is based in Orange County, California, and specialises in providing fixed income investment solutions to pension funds and individual clients, will join Macquarie’s Affiliated Managers Program, which is designed to help affiliated managers expand their product range and increase their assets under management and overall profitability.

Allegiance will be re-branded Macquarie Allegiance Capital when the acquisition is completed, most likely during the second quarter of 2008.