Schroders has completed its 100 per cent acquisition of US investment-grade fixed income manager STW Fixed Income Management.
The FTSE 100-listed fund manager announced plans to buy the firm, which has assets under management of $11.3bn, through its Schroder US Holdings subsidiary on 17 December 2012.
Speaking at the end of last year, Schroders chief executive Michael Dobson said: “STW’s long-term investment approach and its strong performance track record are an excellent fit with Schroders.”
STW takes a value-driven approach to invest in dollar-denominated investment-grade fixed income securities. It targets undervalued bonds then exchanges them for better-valued issues when they become fully priced and does not include overweighting or underweighting to a benchmark in its process.
The firm says: “Central to our philosophy is that major imbalances in the relationships among individual bonds or sectors are caused by the ebb and flow of supply and demand/fear and greed.
“We believe these are far more powerful factors than changes in fundamentals of investment-grade bonds. They are the causes of the market anomalies we attempt to capture.”
The acquisition will increase Schroders’ assets under management in US fixed income to about $35bn.