Schroders has launched Schroder ISF1 EURO Credit Conviction, a new fund which aims to achieve a higher yield than core euro corporate bond funds by focusing on the ‘best ideas’ generated by the Schroders European and UK credit team’s proven investment approach.
The fund, which launched on 18th December and is benchmarked against the iBoxx Euro Corporate BBB Index, invests primarily in a portfolio of Euro-denominated bonds and other fixed and floating rate securities issued by corporate issuers, governments, government agencies and supra-national issuers worldwide.
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The investment process utilises both top-down and bottom-up proprietary research and innovative investment themes from across Schroders’ investment teams to formulate diversified credit investment themes, which we believe will have an influence on European credit markets.
Once themes have been identified, our team of credit analysts undertake in-depth research to identify which companies they expect to benefit as these themes play out.
Peter Beckett, Head of UK and International Marketing, Schroders, said: "Low bond yields across the board have forced investors to search for higher yielding investments. Schroder ISF EURO Credit Conviction allows us to offer an investment grade strategy that aims to deliver a higher yield than core investment grade euro credit funds, a proposition that we expect to be highly attractive to investors who are looking for higher levels of yield, but are unable or unwilling to make an allocation to sub-investment grade bonds."
Patrick Vogel, lead manager on ISF EURO Credit Conviction and head of European Credit, Schroder, said: "As the eurozone economies move into a stabilisation phase, providing a more supportive environment for credit, we are seeing a ‘sweet-spot’ for European credit with opportunities across the investment space, particularly in higher yielding investment grade bonds. While traditional core euro credit strategies may be constrained to owning low yielding bonds, which dilute the best ideas and therefore the returns that these products could deliver, this fund gives us the flexibility to focus our strategy on the investment opportunities which offer the best potential for returns."
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