Schroders plans a bond fund investing in fixed income globally for Gareth Isaac, who recently joined from GLG.
The Schroder Strategic Bond fund will hold government bonds, investment grade corporates, high yield corporates and emerging market debt of both governments and credit.
Unconstrained by a benchmark, Isaac may also use derivatives to limit downside risk. Of his portfolio, 80% will be hedged back to sterling.
“Against a backdrop of rock bottom interest rates in the western world combined with low yields on money market and government bonds, investors are turning their attention to alternative fixed income asset classes such as investment grade and high yield bonds for better returns,” Isaac said ahead of the launch.
“We currently see fantastic value in good quality corporates and high yield issuers as a part of a balanced fixed income portfolio.”
Bob Jolly, the head of global macro, will become Isaac’s alternate manager.
The launch is subject to regulatory approval.
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