Value Core
Investment Objective
The Value Core strategy seeks to outperform the benchmark by 100 basis points over a market cycle while giving special consideration to certain sustainability criteria.
Description
The strategy uses a value-driven approach and seeks to generate return by investing in a portfolio of investment grade, fixed income securities. 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 to the benchmark. It is our view that interest rate forecasting is not a reliable source of returns and thus we focus our efforts on delivering alpha through sector rotation and security selection.
Investment Options*
- Separate Accounts
- Mutual Fund
Learn More
To find out more about this strategy, email our team at canada@schroders.com.
Investment Disclosures
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 and liquidity risk. Frequent trading of the portfolio may result in relatively high transaction costs and may result in taxable capital gains.
*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.