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Schroders launches Global Multi Credit fund

Schroders launches Global Multi Credit fund

Schroders has launched a Global Multi Credit fund, which will invest actively across global credit markets.

The fund is unconstrained by traditional benchmarks, which the investment house said would allow the credit team more freedom to capture opportunities and mitigate risks as they develop throughout the cycle with the aim of delivering a strong total return.

The fund will be managed by the credit team based in London, as part of Schroders’ global credit platform. Patrick Vogel will be the lead manager.

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Schroders currently manages around €20bn (£15.63bn) in European and global credit strategies on behalf of clients around the world, and the London credit team has delivered 5 per cent a year in their flagship investment grade strategy over three years to the end of March.

Mr Vogel said: “There is a strong demand for flexible credit strategies aiming for total returns.

“This unconstrained strategy has the flexibility to capture opportunities in global credit, allowing us to take advantage of non-synchronous credit cycles to deliver return.”

Adviser View

Patrick Connolly, certified financial planner at Chase de Vere, said: “We hold fixed interest in virtually all client portfolios, and with many assets looking expensive prefer to get exposure through flexible unconstrained funds, provided they have suitable risk controls.

“In that sense this is an interesting fund, and the investment team is well-resourced and has a reasonable performance record.

“However, while we use some of Schroders’ equity and multi-asset funds, we aren’t fully convinced by their fixed interest credentials, and so wouldn’t invest in this fund at launch.”