Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a760079

Schroders hard-closes Cat Bond & shuts US equity fund

by Robert St George on Jul 03, 2014 at 10:48

Schroders hard-closes Cat Bond & shuts US equity fund

Schroders has acted to staunch flows into its catastrophe-bond fund less than a year after its launch.

The Schroder GAIA Cat Bond fund has already passed £470 million of assets since inception in October 2013, and the firm has now closed it to new subscriptions.

‘The fund may reopen in the future when the manager believes that new inflows will not affect performance,’ Schroders stated.

The strategy has returned 20% since launch in August 2011, which incorporates the time before Schroders added it to its Ucits-compliant GAIA platform, with positive returns in 97% of months through that period.

‘This closure reflects Schroders’ commitment to maintain the integrity our funds, to aim to protect performance for existing investors and deliver the fund’s objectives,’ a spokesperson for Schroders told Wealth Manager.

Schroders also manages two other insurance-linked strategies, the Schroder IF Core ILS fund and the Secquaero ILS fund, which both remain open to institutional investors.

Separately, Schroders has shut its US Equity Alpha fund. The £20 million fund was managed by Joanna Shatney until April this year, and then by Matt Ward and Alan Straus. Over the past three years it returned 40.2%, compared with 51% from the S&P 500 index.

It has now been merged into the £478 million Schroder US Large Cap fund, which Shatney also handed over to Ward and Straus in April. It has returned 46.2% over the past three years.

In November last year Schroders shut another of Shatney’s funds, US Alpha Plus; it had launched two years earlier but attracted only £7 million.

A spokesperson for Schroders said US Equity Alpha had been closed because it was ‘too small to be managed cost effectively and is unlikely to grow in the near future’.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Sponsored Video: Barings on investing in Frontier Markets


From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.

More about this:

Look up the funds

  • Schroder GAIA Cat Bond F Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Schroder ISF US Equity Alpha A Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Schroder ISF US Large Cap A Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the fund managers

  • Joanna Shatney
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Matthew Ward
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet