group to rename and alter mandate of global bond fund as part of broader reorganisation
Schroders is to rename and alter the mandate of its Global Bond fund as part of its fund range reorganisation, as exclusively revealed last week in Investment Week.
This autumn the £14.9m portfolio will be renamed the Schroder Strategic Bond fund, to reflect a change in remit from investing in global government paper to corporate bonds.
Bob Michele, global head of fixed income at Schroders, will continue to manage the fund, which over three-years to 2 June 2003, on an offer-to-bid basis, is ranked 37 out of 41 fund in the Global Bond sector, returning 5.0%, compared to the sector average 16.1%.
Robin Stoakley, managing director of UK retail at Schroders, said global government bond issuance is decreasing while corporate bond issuance is on the rise, as is investor interest in the asset class. He added the US corporate bond market has grown by 30% since 1986 and the European market has seen a rise of 800% since 1996. Although the fund will be predominantly invested in global corporate bonds, it can also invest in emerging market debt and mortgage backed securities. The fund will be able to draw on the group's new global high yield facility, which will be established in New York this summer, by current head of European fixed income Lisa Coleman.
Stoakley said in an environment where the demand for yield is strong around the world, the high yield sector has become critically important in the bond universe and an area the group needed more expertise in.
To work with Coleman in Schroders New York office, Stoakley said the group is looking to hire two senior high yield analysts.
Taking over Coleman's European fixed income role in the UK will be Robert Gall, former head of fixed interest at the group, who left Schroders in December last year to take a six-month break.
Gall returns to the group on 1 July and will also manage four of the group's European International Selection Funds, the ISF Euro Bond, ISF European Bond, ISF Euro Corporate Bond and the ISF Euro Liquidity fund.
He will not be returning to the funds he managed before he left, the Schroder Corporate Bond and Monthly High Income funds, which are now run by Richard Dryer.
Stoakley said: 'The global high yield facility will be particularly helpful to Dryer in his research and analysis on the Monthly High Income fund. We are also planning to hire a senior UK corporate bond specialist to work with Dryer and the existing corporate bond team.'
Over six months to 2 June the Schroder Corporate Bond fund, on an offer-to-bid basis, is ranked 60 out of 79 funds in the UK Corporate Bond sector, returning 1.96%, compared to the sector average 3.69%.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till