Toronto-based Aston Hill Asset Management Inc. announced on Monday that Ben Cheng, its chief investment officer, is now managing mutual funds exclusively for the firm beginning with the launch of the new Aston Hill High Income Fund.
Cheng can now manage mutual funds for Aston Hill following the end of a “non-compete” agreement between the firm and Toronto-based IA Clarington Investments Inc., which was instituted when the subadvisor contract between the two firms was not renewed in February. Prior to February, Cheng had been lead portfolio manager for three IA Clarington funds.
Manager changes at IA Clarington
“I’ve spent most of my career managing income-focused strategies, but I have never been more passionate about a fund than I am for the new Aston Hill High Income Fund,” says Cheng in a statement. “This is in part because I am back with the investment team I handpicked, but also because of the freedom with which I have been granted when managing this fund, including my ability to use alternative strategies that allow for enhanced protection and income generation.”
These alternative strategies include the use of options and shorting, which will occur within regulatory limitations, notes Aston Hill’s announcement.
Aston Hill also states the fund is not restricted by geography or asset class, which means Cheng has access to various securities including, but not limited to, equities, preferred shares, high-yield bonds, real estate investment trusts, investment-grade fixed-income, floating-rate debt, convertible securities and asset-backed or mortgage-backed securities.
Aston Hill also announced on Monday that Cheng has been named co-manager of the Aston Hill Global Growth and Income Fund. He joins the fund’s current portfolio manager, Vivian Lo.