Schroders has announced the launch of Schroder International Selection Fund (ISF) Global Credit Income fund, its first credit income offering.
The fund will invest actively and flexibly across global credit markets, including investment grade, high yield, EM sovereign & credit, and asset backed securities to exploit opportunities for income in the global credit universe, Schroders said in statement announcing the launch.
The new fund will be run by the ISF credit team based in London, as part of Schroders’ established global credit platform and will be co-managed by Patrick Vogel and Michael Scott. The fund is unconstrained, which means that it will not be managed against a benchmark allowing the investment team to avoid areas of the market that present significant risk of drawdown.
Schroders currently manage around £19.6bn in european and global credit strategies on behalf of clients around the world. The fund management team are part of an integrated fixed income platform of over 100 investment specialists based across the globe.
Patrick Vogel, head of european credit at Schroders, said: “Unlike funds that aim to outperform their benchmarks, where the funds’ total returns are largely governed by their benchmarks, the principal aim of this fund is to deliver a consistent and attractive income.
“Achieving this requires a more flexible strategy, where the investment team has the freedom to allocate across the broad global credit universe, aiming to capture the best opportunities and mitigate the risks, making our clients’ capital work harder for them.”