Schroders has launched another externally-managed fund on its Global Alternative Investor Access (GAIA) platform, Schroder GAIA Avoca Credit.
According to the company, the new fund is a fundamental credit long short strategy and is scheduled to be launched in November 2013.
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The UCITS platform is designed to offer investors access to hedge fund strategies in the liquid, transparent and regulated UCITS format.
Avoca Capital Management’s Simon Thorp and James Sclater will be responsible for the management of the long-short portfolio.
The fund will be benchmark unconstrained and aims to deliver an annualised return of 7-10% net of fees. The fund will focus on European corporate credits and financials with smaller allocations globally, including to emerging markets.
The Fund will invest in the full credit spectrum using instruments such as corporate bonds, CDS, credit indices, investment grade and high yield index options and sovereign debt.
Avoca’s existing Ucits fund, the Avoca Credit Absolute Return Fund, will merge into Schroder GAIA Avoca Credit on the launch date.
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By GlobalDataSimon Thorp, CEO Avoca Capital Management LLP, said: "We are currently seeing a strong investment case and wealth of alpha opportunities within the long/short credit space as we enter the mature part of the credit cycle and an upturn in the interest rate cycle."
Eric Bertrand, Director of Schroder GAIA, said: "This partnership provides an exciting opportunity to combine Schroders’ distribution framework and extensive resources with Avoca’s considerable experience and expertise in managing credit long short strategies."
