Schroders has launched a new Global Credit Income fund, which invests 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.
The fund will be run by the credit team based in London, as part of Schroders’ global credit platform and co-managed by Patrick Vogel and Michael Scott.
It will be unconstrained, which means that it will not be managed against a benchmark allowing the investment team the freedom to express high conviction where the income opportunities are present and avoid areas of the market that present significant risk of drawdown.
Schroders currently manages around £19.6bn in European and global credit strategies on behalf of clients around the world and the London credit team has delivered 7.1% per annum in their flagship investment grade strategy over three years.
Patrick Vogel, head of European Credit and Michael Scott, Credit Fund Manager 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.”
John Troiano, Global Head of Distribution said: “In the current low interest rate environment the search for income has been at the forefront of our clients’ minds but many do not want to take on high levels of risk to achieve this. This strategy aims to balance these two considerations, delivering income whilst managing the downside risk.”