Schroders' Global Credit strategy seeks to outperform the Bloomberg Barclays Global Aggregate Credit by 75-100 basis points annualized (before fees) over an investment cycle.
The strategy seeks to generate return by investing across the full maturity and investment grade spectrum of corporate bonds denominated in various currencies. The strategy can also invest in global governments, government agencies, supranational issuers, below investment grade and emerging market corporate debt. Our process focuses on implementing multiple investment themes through sector bias and security selection – supported by extensive proprietary fundamental research and quantitative analysis. Investment decisions are made on a relative-value basis, with the goal of capitalizing on opportunities across a wide range of market conditions.
An integrated investment and credit research team of regional portfolio managers aligning in-depth credit research with relevant current investment themes. The team uses proprietary quantitative tools designed to identify relative value opportunities.
- Fixed Income markets are global, interrelated and generally efficient but can overreact to events, creating investment opportunities
- Proprietary research that is fully aligned with credit investment themes can distinguish opportunity from risk
- A globally integrated team of research-driven bond investors is the ideal structure to take advantage of credit opportunities across the world
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 ensuing three to six month period
- Portfolio strategy. Based on investment themes, develop and prioritize investment strategies which will determine optimal portfolio positioning in three primary areas of the market: duration, yield curve exposure, and sector allocation
- Portfolio construction. Implement investment strategies within an actively managed portfolio, using relative value framework to prioritize investment ideas and execute security selection using the resources of our Global Credit, Securitized and Global Teams
- Risk management. Continually review portfolio within rigorous risk management framework
Schroders uses a themes-based investment strategy that combines top-down market drivers with bottom-up fundamental credit analysis to formulate investment strategies and construct portfolios. This process is consistently applied, transparent and repeatable.
- Research driven, themes based, investment process
- Sector and security selection are the key drivers of alpha
- Analysts utilize a rigorous issuer evaluation process that combines fundamental, relative value and volatility assessment
- Centralized global credit research platform for fixed income and equity teams
- Relative value approach to decision making with opportunistic management in changing markets
- Risk management is embedded in our culture - we are lending our client's money
- Separate Accounts