Available from 30 November, the fund targets opportunities for income in the global credit universe, with the aim of providing investors with attractive income while also managing downside risk.
It invests actively and flexibly across global credit markets, including investment grade, high yield, EM sovereign & credit, and asset backed securities.
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.
Vogel, head of European credit, and Scott, credit fund manager, 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.”