Schroders has unveiled the Schroder ISF Global Multi Credit fund, run by lead manager Patrick Vogel, which will invest actively and flexibly across global credit markets, including investment grade, high yield, emerging market sovereign and credit, asset-backed securities, municipals and convertibles. The fund will remain unconstrained by any traditional benchmark to allow more freedom to capture opportunities and mitigate risks.
The credit team will use a tried-and-tested asset allocation technique: theme-based credit investment and research processes already seen in funds including the Schroder ISF Euro Corporate Bond fund (see sector weightings in Chart below).
The A-share class for the fund carries an ongoing charge of 1.57 per cent and the minimum investment is $1,000 (£679).
This new launch should be interesting, given its unconstrained global exposure. The flexibility the fund will have can allow it to seek various opportunities in credit markets around the world, and adjust to take advantage of various credit cycles to deliver returns.
The fund will also be managed with a proven asset allocation technique, providing a diverse credit exposure for investors.
The team already has a solid foundation, managing many funds and delivering strong performance. This particular fund provides investors with a diversified credit exposure. While many investors are looking to de-risk their portfolios, the aim of this fund is to offer a flexible and active approach, with the potential to see a strong risk-return ratio to meet clients’ needs.
Fixed interest forms a large part of many client portfolios to help diversify, and unconstrained funds are there to be able to provide an element of risk control.
While we are currently in a volatile market cycle, having flexible approaches rather than constrained can help fund managers better capture opportunities while still preserving capital.
Holding a fund run by experts in this particular area could help mitigate any risk that might come with it, and could be a good option for investors looking to diversify their portfolios further.