The combined fund will be managed by Stewart and will be called the Schroder UK Corporate Bond fund.
‘It is a very exciting time to be managing sterling corporate bond funds. Both of these funds have full flexibility to take advantage of the opportunities that are currently presenting themselves in global markets,’ said Stewart.
Schroders confirmed that Smitten would continue to manage wealth management mandates in the group’s fixed income team.
Over the past three years Schroder Corporate Bond has returned 15.6%, compared with an average of 22% from its IMA Sterling Corporate Bond sector. Through the same period Cazenove UK Corporate Bond has returned 22.1%.