Value Short Duration
Investment Objective
The Value Short Duration strategy seeks long-term total return consistent with the preservation of capital.
Description
The strategy uses a value-driven approach and seeks to generate return by investing in a portfolio of investment grade, fixed income securities. Income is especially important in managing a short duration mandate, and our investment objective is to balance the goals of stability of capital and total return.
The strategy seeks to add value by capitalizing on imbalances in the relationships among sectors and individual bonds. We believe that investing in undervalued sectors and bonds and selling expensive ones using a relative value assessment is the ideal process to capture value.
The strategy typically invests in US dollar-denominated fixed income securities including governments, corporate bonds, securitized bonds, sovereign and supranational entities, as well as municipal bonds. The strategy is duration neutral, meaning that portfolio duration is set in an attempt to meet client objectives and does not incorporate forecasts or speculation. There is no exposure to currency risk, high yield bonds or emerging market debt.
Management Team
The US Multi-Sector Fixed Income team is made up of several New York based portfolio managers dedicated to value-oriented fixed income investing, and are supported by an experienced team of more than 30 global credit analysts, with geographical and industry expertise.

Andrew B.J. Chorlton, CFA
Andrew Chorlton is Head of US Multi-Sector Fixed Income, based in New York. He leads the team responsible for all multi-sector strategies, including core, long duration, short duration and tax-aware strategies. Andy joined Schroders in 2013 following the acquisition of STW Fixed Income Management, where he had worked since 2007.

Andrew B.J. Chorlton, CFA
Andrew Chorlton is Head of US Multi-Sector Fixed Income, based in New York. He leads the team responsible for all multi-sector strategies, including core, long duration, short duration and tax-aware strategies. Andy joined Schroders in 2013 following the acquisition of STW Fixed Income Management, where he had worked since 2007.

Edward H. Jewett
Edward Jewett is a Portfolio Manager on the US Multi-Sector Fixed Income team. Todd joined Schroders in 2013 following the acquisition of STW Fixed Income Management, where he had worked since 1988. At STW, Todd was Principal, Portfolio Manager and a member of the team responsible for managing multi-sector portfolios including core, long duration, short duration and tax-aware strategies.

Edward H. Jewett
Edward Jewett is a Portfolio Manager on the US Multi-Sector Fixed Income team. Todd joined Schroders in 2013 following the acquisition of STW Fixed Income Management, where he had worked since 1988. At STW, Todd was Principal, Portfolio Manager and a member of the team responsible for managing multi-sector portfolios including core, long duration, short duration and tax-aware strategies.

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.

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.

Neil G. Sutherland, CFA
Neil Sutherland is a Portfolio Manager on the US Multi-Sector Fixed Income team, based in New York. Neil joined Schroders in 2013 following the acquisition of STW Fixed Income Management, where he had worked since 2008. Prior to that, Neil spent seven years at AXA Investment Managers, where he was the Senior Fixed Income Portfolio Manager responsible for credit and absolute return strategies.

Neil G. Sutherland, CFA
Neil Sutherland is a Portfolio Manager on the US Multi-Sector Fixed Income team, based in New York. Neil joined Schroders in 2013 following the acquisition of STW Fixed Income Management, where he had worked since 2008. Prior to that, Neil spent seven years at AXA Investment Managers, where he was the Senior Fixed Income Portfolio Manager responsible for credit and absolute return strategies.

Julio C. Bonilla, CFA
Julio Bonilla is a Portfolio Manager on the US Multi-Sector Fixed Income team, based in New York. He serves as a municipal bond specialist and joined Schroders in 2013 following the acquisition of STW, where he had worked since 2010. Previously, Julio spent ten years with Wells Capital Management, where he was instrumental in developing their municipal derivatives strategy.

Julio C. Bonilla, CFA
Julio Bonilla is a Portfolio Manager on the US Multi-Sector Fixed Income team, based in New York. He serves as a municipal bond specialist and joined Schroders in 2013 following the acquisition of STW, where he had worked since 2010. Previously, Julio spent ten years with Wells Capital Management, where he was instrumental in developing their municipal derivatives strategy.

Lisa M. Hornby, CFA
Lisa M. Hornby is a US Fixed Income Portfolio Manager. Lisa joined Schroders in 2010 and is based in New York. Prior to Schroders, she was a Securitized Products P&L Analyst at Barclays Capital from 2007.

Lisa M. Hornby, CFA
Lisa M. Hornby is a US Fixed Income Portfolio Manager. Lisa joined Schroders in 2010 and is based in New York. Prior to Schroders, she was a Securitized Products P&L Analyst at Barclays Capital from 2007.

Eric Lau
Eric Lau is a US Fixed Income Portfolio Manager. Eric joined Schroders in 2013 following the acquisition of STW Fixed Income Management, where he had worked since 2009.

Eric Lau
Eric Lau is a US Fixed Income Portfolio Manager. Eric joined Schroders in 2013 following the acquisition of STW Fixed Income Management, where he had worked since 2009.

Ryan Mostafa, CFA
Ryan Mostafa is a Portfolio Manager on the US Multi-Sector Fixed Income team and a US Investment Grade corporate specialist. Ryan joined Schroders in 2005 and is based in New York. Prior to Schroders, he was a Portfolio Analytics Analyst and Risk Management Analyst with BlackRock from 2004. Investment career commenced in 2002 upon joining JP Morgan Chase as a Credit Derivatives Analyst and P&L Analyst.

Ryan Mostafa, CFA
Ryan Mostafa is a Portfolio Manager on the US Multi-Sector Fixed Income team and a US Investment Grade corporate specialist. Ryan joined Schroders in 2005 and is based in New York. Prior to Schroders, he was a Portfolio Analytics Analyst and Risk Management Analyst with BlackRock from 2004. Investment career commenced in 2002 upon joining JP Morgan Chase as a Credit Derivatives Analyst and P&L Analyst.
Investment Philosophy
Our investment philosophy for the strategy is based on the premise that pricing inefficiencies exist in the market and our ability to identify those offers the potential to pursue superior investment performance. The portfolio managers focus on identifying investment grade bonds or sectors whose valuations have become dislocated from the underlying fundamentals, primarily due to technical reasons. We believe that purchasing undervalued bonds and selling them once they are fully-priced rewards investors. Portfolio allocation is independent of the benchmark and customizable to a client’s risk appetite. Our sector and security weightings are made independent from the benchmark and our positioning reflects our value approach, as well as the attractiveness of the opportunities relative to the broad market.
Investment Process
The US Multi-Sector investment team is responsible for the implementation of the Schroder Value philosophy. Portfolio managers collaborate with the sector specialist teams as well as the credit analysts, both of whom follow a disciplined, rigorous framework that combines fundamental research with relative value assessment. Our fixed income process consists of four distinct steps:
- Investment themes: Conduct in-depth proprietary market research (fundamental, quantitative and technical) to develop investment themes that will dominate markets over the long term
- Portfolio strategy: Based on investment themes, develop and prioritize investment strategies which will determine optimal portfolio positioning across sectors. This is done in close collaboration with the sector specialist teams.
- Portfolio construction: Implement strategies using a relative value framework with a focus on overall risk level and execute sector and security decisions using the input of the credit analysts and the traders
- Risk management: Ensure that mandates are managed in a manner consistent with their performance objective and corresponding risk profiles. Our three pillar approach provides a framework to continually review and monitor portfolios
The below graphic is an illustration of our investment process:
Key Features
- Value-driven, opportunity-based investment process
- Strategy focuses on income, capital preservation and total return
- Portfolio of investment grade bonds only, with no interest rate forecasting or currency speculations
- Investments are chosen based on relative value without reference to qualitative content of the benchmark
- Sector allocation and security selection are the main sources of generating return
- Daily interaction among key decision makers to evaluate opportunities and relative value
Investment Options*
- Mutual Fund
- Separate Accounts