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Schroders launches absolute return emerging market debt and currency fund


Schroder Investment Management North America (SIMNA) has launched the Schroder Absolute Return EMD and Currency Fund. SIMNA is part of the Schroders’ group, which manages USD283.9 billion in assets worldwide*.

The Schroder Absolute Return EMD and Currency Fund utilises an absolute return strategy and aims to generate positive returns over each rolling 12-month period, regardless of market conditions. This strategy has previously been available only to institutional and offshore investors. The Fund is managed by Schroders’ London-based EMD team, which is led by Geoff Blanning, Head of Emerging Market Debt and Commodities. The team manages over USD8.2 billion in EMD assets globally*. 

"The bulk of the EMD universe has focused on relative return strategies, which have experienced significant falls and high volatility during financial crises. This Fund gives advisors a unique way to access emerging market debt with a strategy that has been managed over a 13-year period, even during extremely volatile markets," says Carter Sims, Head of US Intermediary Distribution for Schroders. "Our team’s ability to go defensive through periods of volatility – without leveraging or shorting – presents a compelling solution for investors who are seeking investment products that are less influenced by the swings of the market."

The Fund’s primary objective is to deliver absolute returns from capital growth and income, while limiting risk and volatility through employing an active management style. The portfolio emphasises a variety of fundamental processes and leans on quantitative and technical analysis as well as country- and sector-specific risk controls to limit volatility. The investable universe is over 58 countries worldwide and includes US dollar bonds, local currency bonds and local currencies. 

"At Schroders we constantly seek new and compelling ways to deliver investing excellence. This Fund is an extension of that focus, providing access to a strategy that can deliver on its goal of absolute return by accessing a broad investment universe," says Sims. "We believe emerging market debt is an underdeveloped and inefficient asset class that rewards the expert, active-management strategy we’ve put in place."


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