In the latest of a number of fixed income developments Schroders has launched a Global Unconstrained Bond Fund to be managed by Bob Jolly and his global multi-sector team.
The fund will aim to achieve a risk-adjusted return of 4% to 5% per year over the benchmark over an interest rate cycle, although this is not guaranteed.
Launch is set for April and the fund will be benchmarked against the Barclays Capital Global Aggregate Bond USD Hedged Index.
Jolly joined Schroders in September 2011 in a newly-created role as head of global macro within the fixed income team.
Last September Schroders launched a long/short strategy for him, the Global Macro Bond Fund, which targets Libor +8% each year. Year-to-date the Luxembourg-domiciled fund has returned 2.22%, according to Bloomberg.
Back in January the group reshuffled its fixed income desks putting Jolly and ex-GLG man Gareth Isaac at the helm of a fully integrated team, named the global multi-sector team.
The Schroder ISF Global Unconstrained Fund will be managed using a similar approach to the existing portfolios run by the team (the Global Bond, Strategic Bond and Global Macro Bond funds). The Schroder International Selection Fund (ISF) Sicav was established in Luxembourg in 1968 in order to help the firm access international clients.
Philippe Lespinard, chief investment officer of fixed income at the firm, said the new launch completes the group’s product range in this area, while Jolly added the unconstrained nature of the fund would allow the team to exploit its best ideas in rates, currency and credit.