Schroder funds downgraded

Moody's has downgraded two of Schroder's Special Situation Dynamic Reserve funds following their investment in securities below investment grade BAA1. Moody's expects both the dollar and euro versions to continue to invest in these securities, a policy which, although allowed by the funds' prospectuses, is not consistent with a fund credit rating of AAA. According to Moody's, this strategic change has grown across the portfolio since its inception. David Harris co-manages both funds with Steven Lear. The dollar fund was launched in 2002, while the euro version began in 2003. Harris said:...