Schroders is to offer investors access to the distressed debt market for the first time, via the launch of a Ucits-compliant alternative investment fund.
The GAIA II NGA Turnaround fund is externally managed by New Generation Advisors (NGA).
The fund is aimed at offering uncorrelated returns compared to traditional strategies by taking both long and short positions in distressed corporate bonds, predominantly in North America. It targets an annual return of 8-12% including management fees, at a volatility of 10-12%.
NGA founder George Putnam, manager of the firm’s flagship corporate bond fund since 1990 that has delivered an annualised return of 11.1%, will manage the new fund.
GAIA, which stands for Global Alternative Investor Access, is Schroders’ alternative Ucits platform, designed to offer investors access to hedge fund strategies.
Schroders manages assets of £313.5 billion (€370 billion) worldwide.
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