Schroders' Global Credit strategy seeks to outperform the Barclays Capital Global Aggregate Credit Index by 75-100 basis points annualized (before fees) over an investment cycle.
The strategy seeks to generate return by investing across the full maturity and investment grade spectrum of corporate bonds denominated in various currencies. The strategy can also invest in global governments, government agencies, supranational issuers, below investment grade and emerging market corporate debt. Our process focuses on implementing multiple investment themes through sector bias and security selection – supported by extensive proprietary fundamental research and quantitative analysis. Investment decisions are made on a relative-value basis, with the goal of capitalizing on opportunities across a wide range of market conditions.
An integrated investment and credit research team of regional portfolio managers aligning in-depth credit research with relevant current investment themes. The team uses proprietary quantitative tools designed to identify relative value opportunities.
Richard A. Rezek Jr., CFA
Richard Rezek Jr. is a Portfolio Manager on the US Multi-Sector Fixed Income team and a US Investment Grade corporate specialist, based in New York. Rick joined Schroders in 2013, following the acquisition of STW, where he had worked since 2002 as a Fixed Income Portfolio Manager. Prior to STW, Rick spent seven years as Vice President and Portfolio Manager at Loomis Sayles.
Wesley A. Sparks, CFA
Wesley Sparks is Head of US Credit at Schroders. Wes' expertise is in the corporate bond sector and he has built the Schroders High Yield team over the past 10 years. In addition, he is the lead manager on a number of global credit portfolios and co-lead manager on a number of US fixed income portfolios. He joined in December 2000 from Aeltus Investment Management, where he was a Portfolio Manager. Wes' investment career commenced in 1988 when he joined Goldman Sachs as a Financial Analyst.
Lucette Yvernault is a Credit Portfolio Manager based in London. She joined Schroders in 2005. Previously, Lucette was a Vice President at CAM Global Credit in 2003. Prior to this she was a Fund Manager for currencies and investment grade credit at Citigroup. In 2000, Lucette was an Associate Fund Manager at CMG First State Investment.
- Fixed Income markets are global, interrelated and generally efficient but can overreact to events, creating investment opportunities
- Proprietary research that is fully aligned with credit investment themes can distinguish opportunity from risk
- A globally integrated team of research-driven bond investors is the ideal structure to take advantage of credit opportunities across the world
Our fixed income process consists of three distinct elements:
- Asset allocation; taking into account the overall credit risk budget for the fund, the target credit risk budget for each regional market and duration and yield curve positioning of the fund
- Security selection; populating the fund with the top picks in preferred industries within each region, and optimizing the portfolio based on analyst recommendations, credit themes, and new issue opportunities. Conducting cross-currency relative value analysis to compare issuers in multiple currencies
- Portfolio optimization and risk management; The lead Portfolio Managers of the Global Corporate Bond strategy serve as “gatekeepers”, working closely with the Regional PMs and analysts to ensure that portfolios are consistent with the strategy and risk budget. They also ensure that the best ideas are being emphasized sufficiently, manage daily liquidity, and monitor portfolio hedges (credit, interest rates, and currency).
- Research driven, themes based, investment process
- Sector and security selection are the key drivers of alpha
- Analysts utilize a rigorous issuer evaluation process that combines fundamental, relative value and volatility assessment
- Centralized global credit research platform for fixed income and equity teams
- Relative value approach to decision making with opportunistic management in changing markets
- Risk management is embedded in our culture - we are lending our client's money
- Separate Accounts