We have added Schroder High Yield Opportunities to the service as a Recommended fund.

Fund Snapshot

The fund provides exposure to pan-European high yield bonds.  The process is characterised by in-depth credit research, which is framed by investment themes.  Within this, the manager invests with flexibility.  Within its sector, the fund features in our 'Primarily Pan-European High Yield, Flexible' category.

Fund Description – Key Points

• This Recommended fund is managed by an experienced credit manager.  Mr Pearson is a member of Schroder’s well-resourced European credit team, which comprises portfolio managers and analysts and includes fellow fund manager, Peter Harvey, another very experienced practitioner.
• The manager believes that attractive total returns can be achieved through the process of diligent, in-depth credit research.  While income generation is his priority, he is also mindful of capital volatility and overall portfolio risk.
• Credit selection is expected to be the primary driver of returns.  The manager believes there is more than enough alpha potential in credit to deliver the fund’s performance objectives in a well-diversified and risk-controlled manner.
• In-depth credit research helps to identify potential winners and losers within the framework of carefully considered investment themes.  These themes not only help to identify potential value, but also serve to highlight disruptive influences on industries and issuers.
• The fund incorporates the manager’s highest conviction ideas.  Risk management is embedded throughout the process, from diversification of themes, in-depth proprietary credit research and pre- and post-trade portfolio risk monitoring systems.

Characteristics and Utility

• The fund provides exposure to predominately pan-European high yield bonds and is managed without constraints versus the benchmark.
• The in-depth nature of the company-specific research, and desire to deliver an attractive level of income, mean that the team is willing to tolerate capital volatility when they have a high level of confidence in their forward-looking analysis.
• In seeking to mitigate the volatility associated with the asset class, the manager aims to construct a portfolio that is diversified by issuer, investment theme and maturity profile.  With its flexible and dynamic approach, the fund is suitable for investors who are seeking a bottom-up driven high yield fund which can be held through a variety of market cycles.

To view our full factsheet, please visit the fund page.