Schroders is launching a Global Unconstrained bond fund for head of global macro Bob Jolly and fixed income manager Gareth Isaac.
The offshore fund is set to launch in April and will target a risk adjusted return of 4 to 5 per cent per annum over the benchmark over an interest rate cycle.
The fund will be benchmarked against the Barclays Capital Global Aggregate Bond USD Hedged Index over a rolling three- to five-year period.
Isaac says: “The Global Unconstrained fund will be a global version of the Schroder ISF Strategic Bond fund and will be run in line with the existing process of being a multi-sector, multi-strategy approach. It will also be able to capture the upside in a lot of the FX markets.”
Jolly says: “In an environment of near zero returns for cash, investors are now seeking a higher return for their capital. There is increasing investor demand for bond funds that have the capability to invest across the global fixed income universe and benefit from a wide opportunity set.
“The unconstrained nature of this fund allows us to exploit the best ideas identified by the global investment team in rates, foreign exchange and credit. Schroder ISF Global Unconstrained Bond seeks to meet investors’ expectations for a higher alpha global bond product.”