19MAI 2022
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.

Lisa M. Hornby, CFA
Head of US Multi-Sector Fixed Income
Lisa Hornby is Head of the US Multi-Sector Fixed Income team. She joined Schroders in 2010 as a portfolio manager on the US Multi-Sector Fixed Income team where she focused primarily on short, core and core plus multi-sector strategies. In 2014, she expanded her portfolio management responsibilities to include long duration and tax-aware mandates and has been responsible for managing the entire spectrum of US multi-sector strategies ever since. In 2020, she was promoted to head of the team. Prior to joining Schroders, Lisa was an analyst at Barclays Capital. She is a frequent contributor to various financial publications, including the Wall Street Journal, the Financial Times and Investor's Business Daily, and is also a recurring guest on Bloomberg Television. Lisa is based in New York.
Qualifications: CFA Charterholder; Series 3; BA in Economics with Honors from Rutgers University.

Lisa M. Hornby, CFA
Head of US Multi-Sector Fixed Income
Lisa Hornby is Head of the US Multi-Sector Fixed Income team. She joined Schroders in 2010 as a portfolio manager on the US Multi-Sector Fixed Income team where she focused primarily on short, core and core plus multi-sector strategies. In 2014, she expanded her portfolio management responsibilities to include long duration and tax-aware mandates and has been responsible for managing the entire spectrum of US multi-sector strategies ever since. In 2020, she was promoted to head of the team. Prior to joining Schroders, Lisa was an analyst at Barclays Capital. She is a frequent contributor to various financial publications, including the Wall Street Journal, the Financial Times and Investor's Business Daily, and is also a recurring guest on Bloomberg Television. Lisa is based in New York.
Qualifications: CFA Charterholder; Series 3; BA in Economics with Honors from Rutgers University.

Neil G. Sutherland, CFA
Fund Manager
Neil Sutherland is a generalist fund manager on the US Multi-Sector Fixed Income team. In this role, Neil has portfolio management responsibilities for the entire spectrum of US Multi-Sector strategies ranging from tax-exempt to tax-aware and from short to long duration. Neil joined Schroders in 2013 following the acquisition of STW, where he had worked since 2008 as a Principal and Fund Manager. Prior to that, he was a Senior Fixed Income Manager at AXA Investment Managers from 2001 to 2008. Neil is based in New York.
Qualifications: CFA Charterholder; MA in Politics and Economics from University of Dublin, Trinity College.

Neil G. Sutherland, CFA
Fund Manager
Neil Sutherland is a generalist fund manager on the US Multi-Sector Fixed Income team. In this role, Neil has portfolio management responsibilities for the entire spectrum of US Multi-Sector strategies ranging from tax-exempt to tax-aware and from short to long duration. Neil joined Schroders in 2013 following the acquisition of STW, where he had worked since 2008 as a Principal and Fund Manager. Prior to that, he was a Senior Fixed Income Manager at AXA Investment Managers from 2001 to 2008. Neil is based in New York.
Qualifications: CFA Charterholder; MA in Politics and Economics from University of Dublin, Trinity College.

Julio C. Bonilla, CFA
Fund Manager
Julio Bonilla is a generalist fund manager on the US Multi-Sector Fixed Income team. In this role, Julio has portfolio management responsibilities for the entire spectrum of US Multi-Sector strategies ranging from tax-exempt to tax-aware and from short to long duration. Julio joined Schroders in 2013 following the acquisition of STW, where he had worked since 2010 as a Principal and Fund Manager. Prior to that, Julio was a Senior Fund Manager at Wells Capital Management from 2000 to 2010. Julio is based in New York.
Qualifications: CFA Charterholder; MBA in Finance from Pepperdine University; BA in Political Science from University of San Diego.

Julio C. Bonilla, CFA
Fund Manager
Julio Bonilla is a generalist fund manager on the US Multi-Sector Fixed Income team. In this role, Julio has portfolio management responsibilities for the entire spectrum of US Multi-Sector strategies ranging from tax-exempt to tax-aware and from short to long duration. Julio joined Schroders in 2013 following the acquisition of STW, where he had worked since 2010 as a Principal and Fund Manager. Prior to that, Julio was a Senior Fund Manager at Wells Capital Management from 2000 to 2010. Julio is based in New York.
Qualifications: CFA Charterholder; MBA in Finance from Pepperdine University; BA in Political Science from University of San Diego.

Ryan Mostafa, CFA
Ryan Mostafa is a Fund 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 Fund 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.

Eric Lau, CFA
Fund Manager
Eric Lau is a generalist fund manager on the US Multi-Sector Fixed Income team. In this role, Eric has portfolio management responsibilities for the entire spectrum of US Multi-Sector strategies ranging from tax-exempt to tax-aware and from short to long duration. Eric joined Schroders in 2013 following the acquisition of STW, where he had worked since 2009 as a Fund Manager Assistant. Prior to that, Eric was a Research Associate at Stanford University in the department of Structural Biology from 1997 to 2001. Eric is based in New York.
Qualifications: CFA Charterholder; BS in Biochemistry from University of California Santa Cruz.

Eric Lau, CFA
Fund Manager
Eric Lau is a generalist fund manager on the US Multi-Sector Fixed Income team. In this role, Eric has portfolio management responsibilities for the entire spectrum of US Multi-Sector strategies ranging from tax-exempt to tax-aware and from short to long duration. Eric joined Schroders in 2013 following the acquisition of STW, where he had worked since 2009 as a Fund Manager Assistant. Prior to that, Eric was a Research Associate at Stanford University in the department of Structural Biology from 1997 to 2001. Eric is based in New York.
Qualifications: CFA Charterholder; BS in Biochemistry from University of California Santa Cruz.

Dennis Darling
Portfolio Manager
Dennis Darling is a portfolio manager and a municipal specialist on the US Multi-Sector Fixed Income team. As a municipal specialist, Dennis is primarily focused on assessing the relative attractiveness of the tax-exempt and taxable municipal sectors as well as helping to determine the industry allocation and security selection for municipal bonds across all of the US multi-sector strategies. Dennis joined Schroders in 2008 as a portfolio manager. Prior to that, Dennis was a Trader, Salesman, Credit Analyst at W. H Mell from 2004 to 2008. Prior to 2004, Dennis held positions in New York and New Jersey on the broker/dealer side in Sales and Trading, as well as Credit Research dating back to 1985. Dennis is based in New York.
Qualifications: MBA from New York University and BA from Connecticut College.

Dennis Darling
Portfolio Manager
Dennis Darling is a portfolio manager and a municipal specialist on the US Multi-Sector Fixed Income team. As a municipal specialist, Dennis is primarily focused on assessing the relative attractiveness of the tax-exempt and taxable municipal sectors as well as helping to determine the industry allocation and security selection for municipal bonds across all of the US multi-sector strategies. Dennis joined Schroders in 2008 as a portfolio manager. Prior to that, Dennis was a Trader, Salesman, Credit Analyst at W. H Mell from 2004 to 2008. Prior to 2004, Dennis held positions in New York and New Jersey on the broker/dealer side in Sales and Trading, as well as Credit Research dating back to 1985. Dennis is based in New York.
Qualifications: MBA from New York University and BA from Connecticut College.

David May
Portfolio Manager
David May is a portfolio manager and a municipal specialist on the US Multi-Sector Fixed Income team. As a municipal specialist, David is primarily focused on assessing the relative attractiveness of the tax-exempt and taxable municipal sectors as well as helping to determine the industry allocation and security selection for municipal bonds across all of the US multi-sector strategies. David joined Schroders in 2019 as a Portfolio Manager. Prior to that, David was a Portfolio Manager at Wasmer Schroeder from 2018 to 2019. He was a Portfolio Manager at Strategic Partners Investment Advisors from 2010-2018. David is based in New York.
Qualifications: BSc Business Administration Champlain College.

David May
Portfolio Manager
David May is a portfolio manager and a municipal specialist on the US Multi-Sector Fixed Income team. As a municipal specialist, David is primarily focused on assessing the relative attractiveness of the tax-exempt and taxable municipal sectors as well as helping to determine the industry allocation and security selection for municipal bonds across all of the US multi-sector strategies. David joined Schroders in 2019 as a Portfolio Manager. Prior to that, David was a Portfolio Manager at Wasmer Schroeder from 2018 to 2019. He was a Portfolio Manager at Strategic Partners Investment Advisors from 2010-2018. David is based in New York.
Qualifications: BSc Business Administration Champlain College.

Richard A. Rezek Jr., CFA
Portfolio Manager, US IG Specialist
Rick Rezek is a fund manager and a US investment grade corporate specialist on the US Multi-Sector Fixed Income team. As a corporate specialist, Rick is primarily focused on assessing the relative attractiveness of the corporate sector as well as helping to determine the industry allocation and security selection for corporate bonds across all of the US multi-sector strategies. Rick joined Schroders in 2013 following the acquisition of STW, where he had worked since 2002 as a Principal and Fund Manager. Prior to that, Rick was a Vice President and Fund Manager at Loomis, Sayles & Company, L.P., from 1996 to 2002. Rick is based in New York.
Qualifications: CFA Charterholder; MBA in Finance from DePaul University; BS in Business specializing in Economics from St. John’s University.

Richard A. Rezek Jr., CFA
Portfolio Manager, US IG Specialist
Rick Rezek is a fund manager and a US investment grade corporate specialist on the US Multi-Sector Fixed Income team. As a corporate specialist, Rick is primarily focused on assessing the relative attractiveness of the corporate sector as well as helping to determine the industry allocation and security selection for corporate bonds across all of the US multi-sector strategies. Rick joined Schroders in 2013 following the acquisition of STW, where he had worked since 2002 as a Principal and Fund Manager. Prior to that, Rick was a Vice President and Fund Manager at Loomis, Sayles & Company, L.P., from 1996 to 2002. Rick is based in New York.
Qualifications: CFA Charterholder; MBA in Finance from DePaul University; BS in Business specializing in Economics from St. John’s University.

Jeffrey Connor, CFA, CERA
Senior Investment Risk Strategist, Actuary
Jeffrey Connor is a Senior Investment Risk Strategist on the US Multi-Sector Fixed Income team. In this role, Jeff conducts quantitative analyses through building customized models and tools that are used to evaluate liability streams as well as broad market and sector trends. Jeff joined the US Multi-Sector Fixed Income team in late 2014. He started working at Schroders Hong Kong in 2012 as a Product Manager for the Commodities Multi-Manager group before relocating to New York in early 2014 in the same capacity. Prior to that, Jeff was a Co-Portfolio Manager / Director of Research at Atticus Emerging Markets Fund from 2003 to 2008. Jeff is based in New York.
Qualifications: FIAA, CFA Charterholder; CERA; LLB from University of NSW, Australia; BSc in Computer Science from University of NSW, Australia.

Jeffrey Connor, CFA, CERA
Senior Investment Risk Strategist, Actuary
Jeffrey Connor is a Senior Investment Risk Strategist on the US Multi-Sector Fixed Income team. In this role, Jeff conducts quantitative analyses through building customized models and tools that are used to evaluate liability streams as well as broad market and sector trends. Jeff joined the US Multi-Sector Fixed Income team in late 2014. He started working at Schroders Hong Kong in 2012 as a Product Manager for the Commodities Multi-Manager group before relocating to New York in early 2014 in the same capacity. Prior to that, Jeff was a Co-Portfolio Manager / Director of Research at Atticus Emerging Markets Fund from 2003 to 2008. Jeff is based in New York.
Qualifications: FIAA, CFA Charterholder; CERA; LLB from University of NSW, Australia; BSc in Computer Science from University of NSW, Australia.
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
Literature
Investment Options*
- Separate Accounts
- UCITS (Undertakings for Collective Investment in Transferable Securities)