Schroder Core Bond with Labor Aware Corporates
Multi-Sector strategy focused on companies with best-in-class labor practices.Introducing Schroder Core Bond with Labor Aware Corporates
The Schroder Core Bond with Labor Aware Corporates is a Multi-Sector Core Fixed Income strategy that invests across the investment grade universe. Within the strategy’s corporate allocation, we employ a labor focus on issuers with leading labor principles and practices, using our proprietary labor model. The Strategy enables labor-conscious investors to invest in corporate issuers that both respect and reflect their values.
Why is labor aware important?
Schroders has advocated for the acknowledgement of labor’s important contributions both through direct corporate engagement and industry research for some time. Employees are fundamental to a company’s performance and long-term success, and recent trends—such as workforce shifts following Covid-19 —have brought greater attention to labor practices. Strong labor practices not only support responsible business operations but can also enhance value for both investors and employees. It’s only natural for labor conscious investors to want to invest their money with corporate issuers whose actions reflect this reality.
By leveraging our proprietary tools and scoring methodology, Schroders takes a labor-aware approach to better analyze, understand, and optimize the role of employees in driving corporate success. In turn, this research directly impacts portfolio allocations.
Labor aware case study
We present an example featuring two financial services firms that receive similar evaluations from standard credit rating agencies. While both firms may be considered suitable for most core fixed income portfolios, our proprietary rating system requires issuers to compete for the capital of labor-conscious investors by achieving strong scores. As illustrated in the table, only one of these issuers meets the criteria for inclusion in our Strategy.
Source: Schroders, Bloomberg. As of August 9, 2025. Ratings are subjective, and an output of Schroders proprietary labor aware screen. Composite quality ratings are an average of S&P, Moody’s and Fitch. Shown for illustrative purposes only and should not be interpreted as a recommendation to buy or sell.
Why Schroders?
Schroders has a longstanding track record of supporting labor-focused clients, including the Taft-Hartley market, with a broad range of equity, fixed income, and alternative investment strategies. We proudly manage assets for over 100 union accounts, totaling $8.2 billion as of September 30, 2025. Our commitment to labor is reflected in our customized, labor-aware strategies designed to meet the unique objectives of labor plans.
What does labor fight for?
Labor law
Unions help working people in America keep and improve their legal rights to safe, healthy and fair conditions at work.
Pay and benefits
Work on policies that promote a full-employment economy at wages and benefits high enough to allow working people to support their families.
Workplace health and safety
Strong protections against hazards and stronger rights for workers.
Global worker rights
A lack of fundamental labor rights, precarious work, poverty, income inequality and a push by business interests to drive down wages and working conditions.
Equality
Dedicated to fair schedules, fair wages, access to affordable health care and child care, and paid leave for all working families.
Find out more about our capabilities
Meet the team
Risk Considerations
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, US 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 fund applies sustainability criteria in its selection of investments. This investment focus may limit the fund's exposure to companies, industries or sectors and the fund may forego investment opportunities that do not align with its sustainability criteria chosen by the investment manager. As investors may differ in their views of what constitutes sustainability, the fund may invest in securities of companies that do not reflect the beliefs or values of any particular investor.
Important information:
Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell any financial instrument/securities or adopt any investment strategy.
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