UK-based asset manager Schroders has launched the ISF Global Credit Value Fund, which the firm said is “one of the first of its kind” to use the value factor to invest in the global credit market.
Value investing involves finding assets that are under-valued and Schroders said the approach will allow its investment team to identify “out of favour” market segments. The aim is to provide investors with a high total return.
The fund will not be constrained by a benchmark and Schroders said this will allow its investment team the flexibility to maintain a “contrarian approach” and exploit opportunities in the global credit market.
The global market consists of bonds from corporate and financial issuers, including developed and emerging markets, convertibles and other securities.
Konstantin Leidman leads the fund with the support of around 40 analysts around the globe.
John Troiano, global head of distribution at Schroders, said the value approach in global high yield corporate bonds has so far been “under utilised by the investment community” and added that Schroders was one of “the few managers to offer such a strategy.”
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