Schroder Global Bonds
Schroders offers three flagship global multi sector fixed income strategies – benchmark-relative, benchmark-unconstrained and absolute return.
- Benchmark-relative - Global Bond is managed against the Barclays Capital Global Aggregate Index and is offered as a low tracking error core bond capability.
- Benchmark-unconstrained - Global Unconstrained Bond is also managed against the Barclays Capital Global Aggregate Index, but is benchmark agnostic.
- Absolute return - Strategic Bond is an absolute return strategy managed against 3 month USD LIBOR.
For fixed income clients purely seeking a total return, Strategic Bond is likely to outperform until yields normalise. At this point the higher bond allocation of Global Unconstrained Bond will benefit performance. In terms of “risk” positioning within the Schroders' fixed income range Global Unconstrained sits between Global Bond and Strategic Bond.
- Global Unconstrained Bond will have an on-going bond allocation and as such it will benefit from the higher carry, but potentially be more volatile than Strategic Bond.
- Global Unconstrained is designed for clients who require a bond benchmark, but want to give fund managers more tracking error to exploit opportunities presented by higher levels of volatility.
Available Products in Australia
Global Bond, Global Unconstrained Bond and Strategic Bond are available to clients as segregated mandates (minimum size $100m). In addition, currently Global Bond, hedged to AUD, (the Schroder Global Bond Fund) is available in an Australian Unit Trust structure (minimum investment $500k).