Global Strategic Bond
The Global Strategic Bond strategy seeks total return over the long term.
An actively managed strategy with the flexibility to invest in the best opportunities in global bond markets, offering investors the potential for total return in different market environments - including periods of rising rates. The strategy is absolute return focused, truly unconstrained, flexible and global, strategic and tactical and focused on risk.
We use a global theme-based top-down investment approach, designed with the flexibility to try to capture uncorrelated alpha in all market environments. We aim to provide positive performance regardless of market, spread or interest rate direction as well as better principal protection and low correlation relative to traditional, long only strategies.
The Global Multi Sector team is responsible for the strategy, which is managed according to a team investment process with the three senior investment professionals in the team, Bob Jolly, Head of Global Macro Strategy, Fixed Income and Paul Grainger, CFA – Senior Portfolio Manager, Fixed Income, being accountable for the overall team investment strategy. The Global Multi-Sector team is supported by Schroders integrated and experienced fixed income team of over 100 fixed income specialists across the globe.
The strategy’s management team follows the philosophy that sustainable alpha generation is driven by skill and diversification. Diversification is achieved by alpha source and time horizon. We actively manage portfolios using a risk budgeting approach, allocating risk to positions where we believe there is sufficient mispricing to warrant an allocation of risk to a view or market.
To help us determine such mispricing’s we use fundamental, research-driven analysis together with technical analysis. Care is taken to diversify the positions in the portfolio which is a blend of risks often including cost effective offsetting positions. These offsetting positions are expected to perform should the central themes be proven to be inaccurate.
Finally, given the global nature of economies and markets it is critical that the team draw upon the expertise offered to us by our regional specialists thereby allowing us to access local market intelligence.
We believe the best way to deliver absolute returns is to diversify in terms of alpha source and time horizon. We use a broad alpha 'tool kit' and look to capitalize on opportunities - and hedge risk - wherever they occur.
- The Schroders Global Strategic Bond is an actively managed portfolio with the flexibility to invest in the best opportunities in government and corporate bond markets
- Offers investors the potential for total return in different market environments—including periods of rising rates
- The portfolio may also utilize active currency management in both developed and emerging currencies for the generation of alpha and diversification of risk.
- Derivatives are allowed and used to hedge and obtain active risk in the Fund. Derivatives used include: interest rate futures, interest rate swaps, credit default swaps and currency forwards.