Schroders acquires $4bn fixed income team

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Schroders has agreed a deal to buy a $4bn (£2.7bn) fixed income team from US-based Brookfield Investment Management.

The asset management giant will acquire Brookfield’s securitised products investment management team, which is led by Michelle Russell-Dowe.

The deal will see the firm’s asset and mortgage-backed securities team join Schroders’ existing New York-based ABS team, with the combined teams collectively running $8bn.

The Brookfield team also bring with them a Irish qualifying investor alternative investment fund, which Schroders says will help its expansion into alternative investments.

Schroders chief executive Michael Dobson last week said the asset manager was on the hunt for a fixed income team to expand its range of offerings.

Karl Dasher, chief executive for North America at Schroders, says: “This acquisition deepens our capabilities in one of the largest and most research intensive credit sectors globally.

“The process developed by Michelle and her team over two decades has delivered one of the longest and strongest track records in the sector with an extensive network of industry relationships.

“This will strengthen our investment capability for both US and non-US investors seeking higher return opportunities within fixed income.”

The deal is expected to complete in the third quarter.

Brookfield Investment Management is a $16bn real assets manager, which is a division of $225bn global asset manager Brookfield Asset Management.