With yields still at extremely low levels, you have to make your assets work harder to generate attractive risk adjusted returns and income for your clients. This is particularly true for government bonds, where yields have dropped to unprecedented lows. In this environment, actively managed credit (or corporate bonds), is a potential source of higher returns, attractive income and diversification.
With thousands of issuers to select from, credit is a hugely diverse and growing asset class. To harness the strongest opportunities, while avoiding pitfalls, credit funds need to be managed with intelligence and precision. To do this effectively, and act on ideas quickly, takes in depth, forward-looking research and experience.
In a connected and interdependent world, a global perspective is vital in making the best decisions. We have approximately 100 credit experts based in nine locations worldwide who provide local insight and expertise. Our credit teams are part of a multi-discipline research platform at Schroders, who can draw on the knowledge of our in-house experts within equities, ESG, commodities, property, etc.
We have the right level of resources to ensure that each opportunity is analyzed in depth, the return potential evaluated and the risks assessed. Yet we retain the flexibility to move quickly and act with conviction, aiming to deliver value at each stage of the business cycle.
Past performance is not a guide to future performance and may not be repeated.
The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall.
A rise in interest rates generally causes bond prices to fall.
A decline in the financial health of an issuer could cause the value of its bonds to fall or become worthless.
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