US High Yield

Investment Objective

The US High Yield strategy aims for a gross outperformance of 150 basis points per annum versus the Bloomberg Barclays US Corporate High Yield Bond Index over a full investment cycle.


The strategy seeks to generate total return by investing across the full maturity spectrum of below investment grade corporate bonds, denominated in US dollars. The strategy may also invest up to 30% in investment grade corporate bonds and government securities. The strategy typically does not invest in equities, leveraged loans, or emerging market sovereigns.

In the US High Yield strategy, we manage six key factors when trying to generate return. Three factors: issue selection (including investment decisions on seniority/subordination, covenant protection, maturity, and bond versus CDS exposures), sector weighting, and quality tilt typically contribute the majority of any excess returns relative to the Barclay Capital US Corporate High Yield Index. Positions in three other areas are also actively managed: geographic exposure, duration and curve positioning, and liquidity. These factors together contribute the balance of any excess returns versus the benchmark.

Investment Options*

  • Separate Accounts

Learn More

To find out more about this strategy, email our team at

Investment Disclosures

*The strategies listed include those which may be subject to the ability to meet investment minimums and other specific criteria, and may not be directly available to U.S. investors.

There can be no guarantee these strategies will be successful or that the investment objective can be achieved.

Investment risks: All investments involve risks including the risk of possible loss of principal. The market value of the portfolio may decline as a result of a number of factors, including interest rate risk, credit risk, inflation/deflation risk, mortgage and asset-backed securities risk, U.S. Government securities risk, foreign investment risk, currency risk, derivatives risk, leverage risk and liquidity risk. Frequent trading of the portfolio may result in relatively high transaction costs and may result in taxable capital gains.

Schroder Investment Management North America Inc. (“SIMNA”) is an SEC registered investment adviser providing asset management products and services to clients in the US and in Canada, NRD Number 12130. Registered as a Portfolio Manager in Canada with the securities regulatory authorities in Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec and Saskatchewan.  Schroder Fund Advisors LLC (“SFA”) is a wholly-owned subsidiary of SIMNA Inc. and is registered as a limited purpose broker-dealer with FINRA and as an Exempt Market Dealer with the securities regulatory authorities in Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Quebec, and Saskatchewan.SFA markets certain investment vehicles for which other Schroders entities are investment advisers. 

For illustrative purposes only and does not constitute a recommendation to invest in the above-mentioned security / sector / country.

Schroders Capital is the private markets investment division of Schroders plc.Schroders Capital Management (US) Inc. (‘Schroders Capital US’) is registered as an investment adviser with the US Securities and Exchange Commission (SEC).It provides asset management products and services to clients in the United States and Canada.For more information, visit

SIMNA, SFA and Schroders Capital are wholly owned subsidiaries of Schroders plc.