Schroders, the USD359.2bn global asset manager, has launched four US mutual funds.
The funds are the Schroder Long-Duration Investment Grade Bond Fund, the Schroder Broad Tax-Aware Value Bond Fund, the Schroder Emerging Markets Multi-Sector Bond Fund and the Schroder Emerging Markets Multi-Cap Equity Fund.
With the addition of these four funds, the Schroder US mutual funds family grows to 13 different options.
The Schroder Long-Duration Investment Grade Bond Fund and the Schroder Broad Tax-Aware Value Bond Fund are newly branded funds that were existing funds managed by STW Fixed Income Management, a fixed income asset manager acquired by Schroders on 2 April. These funds are managed by six portfolio managers dedicated to value-oriented fixed income. This team manages over USD11.2bn as of 31 March 2013 and has an average of nearly 20 years of experience in managing fixed income assets.
The Schroder Long-Duration Investment Grade Bond Fund seeks to achieve a total return by investing in a portfolio of investment grade, long maturity fixed income securities. Sector allocation and security selection are determined based on an assessment of value rather than composition of the benchmark.
The Schroder Broad Tax-Aware Value Bond Fund seeks to maximise after-tax total return over the long-term by investing in a portfolio of investment grade fixed income obligations. It primarily invests in tax-exempt bonds but will invest in taxable bonds when the portfolio managers believe they are undervalued. Sector allocation and security selection are determined based on an assessment of value rather than qualitative content of the benchmark.
"Schroders continues to focus on expanding its resources in fixed income, which is evident in the recent acquisition of STW. The adoption of these two mutual funds allows us to broaden our fixed income investment options available to the advisor community,” says Carter Sims, head of US intermediary distribution.
To further enhance Schroders’ emerging markets capabilities offered in the US, it has added two new funds to the platform.
The Schroder Emerging Markets Multi-Sector Bond Fund seeks to provide a return of capital growth and income through investment principally in fixed income securities of governments and companies in non-developed, emerging market countries. This "multi-sector" approach integrates sovereign hard currency debt, local currency rates and currency, and emerging market corporate debt within an actively managed, strategic asset allocation framework that is less benchmark-constrained. The fund’s portfolio managers average over 16 years of industry experience and draw on the expertise of 30-plus credit analysts across five continents, with in-market presence in seven major emerging countries.
The Schroder Emerging Markets Multi-Cap Equity Fund takes an unconstrained approach that invests across the emerging markets equity landscape broadly across all market caps, with a focus on value, quality and yield. The team manages over USD34bn in assets as of 31 March, 2013 and has over a 13 year record in managing global equity portfolios.
"We have continued to focus on bringing our global expertise to the US market, and the launch of the two new emerging market funds points to that focus," says Sims. "Although the recent markets have been volatile, we expect demand to continue to remain strong within emerging markets over the long term as global growth continues to be sourced from these markets. We feel both of the funds are positioned extremely well to capture the next wave of growth in each respective asset class."
