Schroders launches European high yield fund for Leidman
Schroders extends its high yield product range on an optimistic view of the European 'junk' market.
Markets
by Emily Blewett on Dec 13, 2012 at 13:45
Schroders has a new fund that focuses on below-investment grade bonds from European issuers, managed by recently recruited high yield specialist, Konstantin Leidman.
The Schroder ISF EURO High Yield fund, launched in mid-November, will focus on Europe's high yield market which is in comparison much smaller than the US market, according to Leidman who also currently manages the UK-domiciled Schroder Monthly High Income A Acc fund with Michael Scott.
'This market has grown considerably over the last decade, and we expect this trend to continue with further growth as a result of bank deleveraging and downgrades of countries in peripheral Europe,' said Leidman.
'In the low rate environment there is a strong case for an asset class that provides attractive risk-adjusted returns with a strong income generation component.'
The new fund will invest a minimum of 70% in a portfolio of bonds rated below investment grade, mainly from European issuers. It will benchmarked against the Bank of America Merrill Lynch Euro High Yield Constrained Index.
This is the first major launch by Schroders in the high yield space since Adam Cordery left the team in the summer.
Cordery's previous fund, the Schroder ISF EURO Corporate Bond fund with €3.7 billion under managerment, is currently managed by head of credit, Patrick Vogel.
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