Schroders has launched an income-generating fund which will operate across global credit markets on an unconstrained basis, or without following a benchmark. The fund will invest in credit markets including investment grade, high yield, emerging markets and asset-backed securities. Schroders currently manages £19.6 billion in European and global credit strategies and the credit team have achieved a 7.1% annual return over three years.
Schroders global head of distribution, John Troiano, commented: “We are delighted to be launching our first credit income fund in direct response to demand from clients seeking income from viable alternatives to equities. In the current low interest rate environment, the search for income has been at the forefront of our clients’ minds but many do not want to take on high levels of risk to achieve this. This strategy aims to balance these two considerations, delivering income whilst managing the downside risk.”