Norwest Bank Minnesota, Minneapolis, has spun off a significant portion of the bank's specialty fixed-income organization as a wholly owned investment management subsidiary.
Galliard Capital Management Inc. becomes the fifth Norwest investment subsidiary; it will offer actively managed fixed-income and stable value investment management.
Principals are John Caswell and Karl Tourville, who had been vice presidents with Norwest Investment Management and Trust, and Richard Merriam, formerly chief investment officer with Insight Investment Management, Minneapolis.
Galliard will manage two of Norwest's fixed-income mutual funds - the Adjustable U.S. Government Reserve fund and the Stable Income fund - with combined assets of about $180 million. In addition, Galliard will manage Norwest's $1.4 billion Stable Return Fund, a commingled trust made up of traditional insurance guaranteed investment contracts and synthetic GICs.
The firm also has about $500 million in actively managed separate account fixed-income portfolios.
Mr. Tourville said Galliard's investment style will focus on a yield-oriented relative value approach. "We are not interest rate timers; our portfolios' duration will center around the appropriate benchmark index. We will add value through fundamental security and sector selection," he said. Asset allocation includes government and agency securities, corporate bonds and mortgage securities. The normal duration of the Galliard fixed-income portfolios is in the one- to five-year range.