Schroders has launched its first credit income fund, co-managed by Patrick Vogel and Michael Scott.
The Schroder ISF Global Credit Income fund invests across credit markets, including investment grade, high yield, emerging markets and asset backed securities.
Global head of distribution John Troiano says the launch of the unconstrained fund is a direct response to demand from clients who want alternative sources of income to equities.
“In the current low interest rate environment the search for income has been at the forefront of our clients’ minds but many do not want to take on high levels of risk to achieve this,” he says.
“This strategy aims to balance these two considerations, delivering income whilst managing the downside risk.”
The fund has ongoing charges of 1.1 per cent with an entry charge of 3 per cent.