Schroders unveils strategic bond fund for ex GLG AAA-rated star

Schroders has announced the launch of the Schroder Strategic Bond fund for Gareth Isaac, a vehicle that aims to deliver a total return by investing across a broad range of fixed income markets.

The fund, which is subject to regulatory approval, will sit in the UK IMA strategic bond sector and senior portfolio manager Isaac will be supported by alternate manager Bob Jolly, Schroders' head of global macro.

The benchmark unconstrained vehicle will invest in fixed income opportunities across the globe, while actively allocating between government bonds, investment grade corporate, high yield corporate and emerging market debt of both governments and credit.

The vehicle can also use derivatives to limit downside risk, with 80% of the portfolio being hedged back to sterling.

Speaking about the launch, Isaac said that against a backdrop of rock bottom interest rates in the western world combined with low yields on money market and government bonds, investors have become keen to access alternative fixed income investments.

'We currently see fantastic value in good quality corporate and high yield issuers as a part of a balanced fixed income portfolio,' Isaac said.

Isaac joined Schroders from GLG last summer, where his strong risk adjusted performance earned him a Citywire AAA-rating.  

His funds included the GLG Total Return Bond and the GLG Core Plus Sterling Bond funds

According to Lipper, in the three years to the end of June he returned 11.4% on the Total Return fund versus a 5.3% rise in Libor at a maximum drawdown of 3.1%.