Schroders’ credit team launch absolute return strategy
Schroders is pleased to announce the launch1 of Schroder ISF2 EURO Credit Absolute Return, managed by Patrick Vogel and the European credit team. The fund aims to provide a positive annual return3 throughout the market cycle and uses the same investment process that has delivered first quartile performance across four credit strategies.4
The strategy combines traditional top-down views with the credit team’s innovative themes based credit process, which identifies global trends and applies in-depth business model analysis to determine which issuers will benefit and which are vulnerable to these trends.
The credit team currently manage €8 billion5 on behalf of clients around the world and has delivered 5.1% per annum in the flagship investment grade strategy over 3 years.4 The fund management team are part of an integrated fixed income platform of over 100 investment specialists based across the globe.
Patrick Vogel, Head of European Credit, said:
“The new fund will plug into our proprietary themes based credit approach, to create a diversified credit strategy. Implementing themes through long and short positions in a highly risk conscious manner, we aim to combine high levels of alpha with credit yield to deliver consistent return for our clients.”
Carlo Trabattoni, Head of Pan European Intermediary Distribution and GFIG, said:
“We’re delighted with the addition of this high conviction, absolute return fund to our credit offering. Patrick and the team have delivered strong performance and this new addition allows clients to invest in a strategy uncorrelated to market volatility, within the team’s proven investment process. As investors become more conscious of achieving returns throughout the market cycle, the strategy can allow them to find opportunities in credit markets even when bond yields are rising.”
1Launched on 11 November 2015
2Schroder International Selection Fund is referred to as Schroder ISF throughout
3The fund aims to deliver Euribor +3%
4As at 31 October 2015, according to Morningstar. Schroder ISF EURO Corporate Bond has delivered first quartile returns of 2.1% over 1 year, 4.9% per annum over 2 years and 5.1% per annum over 3 years. Schroder Monthly High Income generated first quartile returns of 5.1% over 1 year, 5.5% per annum over 2 years, and 6.8% per annum over 3 years. Schroder ISF EURO High Yield launched on 14 November 2012 delivered first quartile returns of 4.7% over 1 year and 5.5% over 2 years. Schroder ISF EURO Credit Conviction launched on 18 December 2013 delivered first quartile returns of 2.9% over 1 year.
5Schroders as at 30 September 2015
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