Schroders launches BSP Credit strategy on GAIA platform
Today, Schroders is pleased to announce the launch of Schroder GAIA BSP Credit, an externally managed fund on its GAIA platform1 .
The fund is a fundamental credit long short strategy that applies a bottom-up approach, combining deep credit analysis, sophisticated structuring and active trading to maximise expected returns while limiting downside risk.
Investing primarily in global high yield corporate credit with a focus in the US, the fund will aim to generate attractive risk-adjusted returns in both up and down markets and provide investors with an absolute return of 5-7% per annum.
With reduced exposure to directional market trends and a lack of correlation to various indices, the fund will be positioned to maximise downside protection and outperform during market sell-offs.
Thomas Gahan, a seasoned investment professional with over 30 years of credit experience, leads the team as CEO of BSP and CIO of the long short strategy along with co-portfolio managers David Ren and Josh Passman. The credit long short team will follow the same research process employed in the existing strategy to identify and exploit mis-priced credits on both the long and short side.
Since the long short credit strategy’s inception in February 2011, the strategy has generated an annualised return of 5.9% net of fees with a volatility of approximately half the long-only index2.
The greater BSP credit platform currently manages over $10 billion3 on behalf of clients with over 50 investment professionals based in New York.
Thomas Gahan, CEO and CIO of BSP and the fund manager, commented:
“We’re delighted to partner with the Schroder GAIA team as one of the leading UCITS distribution platforms. Over the past couple of years, credit market yields have approached historic lows, and the relentless reach for yield has allowed investors to ignore differences in credit quality. Our alphacapture strategy is designed to exploit these mispricing inefficiencies, equipping us to thrive and outperform when market volatility increases and spreads widen.”
Eric Bertrand, Director of GAIA platform, added:
“We are constantly on the lookout for high-quality hedge fund managers to join our Schroder GAIA funds. BSP and Thomas Gahan bring a wealth of experience in the US and global credit markets and an impressive track record of strong performance. This fund will be of interest to investors seeking above average returns with low correlation to the broad markets and in a manner that aims to preserve capital. The strategy is complimentary to the GAIA offering, providing our clients the opportunity to access credit opportunities globally.”
The GAIA platform was launched in November 2009 and has now reached $5.2bn in assets under management4. It combines the strength of Schroders’ renowned asset management expertise and extensive distribution capability with leading hedge fund managers. Schroder GAIA offers access to liquid alternative investment strategies with moderate to low correlations to mainstream market returns within a Luxembourg mutual fund format subject to the ‘gold standard’ UCITS regulations.
Following the launch there will be five externally managed funds on the platform, Schroder GAIA Egerton Equity, Schroder GAIA Sirios US Equity, Schroder GAIA KKR Credit, Schroder GAIA Paulson Merger Arbitrage and Schroder GAIA BSP Credit.
1GAIA (Global Alternative Investor Access) is Schroders’ alternative UCITS platform designed to offer investors access to alternative strategies in the liquid, transparent and regulated UCITS format.
2Source: BSP as at 30 April 2015.
3 Source: BSP as at 30 April 2015
4 Source: Schroders as at 30 April 2015
For further information, please contact:
Estelle Bibby, Senior PR Manager
Tel: +44 (0)20 7658 3431
Lucy Cotter, PR Executive
Tel: +44 (0)20 7658 6168
Sarah Deutscher,Senior PR Manager
Tel: +44 (0)20 7658 6139
Notes to Editors
For trade press only.
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Schroders is a global asset management company with £319.5 billion (EUR441.6 billion/$474.3 billion) under management as at 31 March 2015. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate from 37 offices in 27 countries across Europe, the Americas, Asia and the Middle East. Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.
Further information about Schroders can be found at www.schroders.com.
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Benefit Street Partners
Benefit Street Partners LLC (BSP) is the debt investment arm of Providence Equity Partners LLC, a $40bn** private equity/asset management firm. The team consists of over 50 investment professionals led by Thomas Gahan, who formerly served as Global Head of Capital Markets at Deutsche Bank and has 30 years of experience.
BSP credit platform currently manages $10.4bn* in AUM. The credit long short strategy has $1.4bn in AUM, which includes ~$110m from staff investment.
*AUM refers to the assets under management for all credit funds and separately managed accounts managed by BSP and its affiliates and are unaudited.
**Includes assets under management of credit platform and affiliate business, Merganser Capital Management and is preliminary and subject to change.
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