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Schroders Launches First Credit Income Fund

Emily Harrison 1 December 2016

Schroders Launches First Credit Income Fund

The London-listed firm said the launch was in response to demand from clients seeking income from viable alternatives to equities.

Schroders has launched the Schroder ISF Global Credit Income fund with the aim of providing investors with attractive income while also managing downside risk.

The fund will invest actively and flexibly across global credit markets, including investment grade, high yield, emerging market sovereign and credit, and asset-backed securities.

It will be unconstrained, meaning that it will not be managed against a benchmark, allowing the team to take a high-conviction approach where income opportunities are present and avoid areas of the market with significant risk of drawdown.

The fund will be co-managed by Patrick Vogel, Schroders’ head of European credit, and Michael Scott, credit fund manager. They will be supported by the wider London-based credit team.
“Unlike funds that aim to outperform their benchmarks, where the funds’ total returns are largely governed by their benchmarks, the principal aim of this fund is to deliver a consistent and attractive income,” said Vogel and Scott.

“Achieving this requires a more flexible strategy, where the investment team has the freedom to allocate across the broad global credit universe, aiming to capture the best opportunities and mitigate the risks, making our clients’ capital work harder for them.”

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