Schroder High Yield Opportunities Fund Z Income GBP

Sterling Bonds

Rated Fund 2017-19. Identifies high-yield bond themes to follow or avoid

This fund, originally called Schroder Monthly High Income, changed its name in early 2017 to better re­flect its objective. The fund still generates a monthly income, but also boasts the highest yield in the group at 6.6%.

The fund lost its manager, Michael Scott, who had run the fund since 2012, to Man GLG last year. He was succeeded by Daniel Pearson in September 2018. However, we continue to rate Schroders’ strong, team-based approach and robust investment process.

This fund invests primarily in pan-European high-yield bonds, and it has some allocation to emerging markets and the US. The team’s first step is to seek to identify investment themes that drive global fixed-income markets and then look for assets that can achieve consistent performance through the market cycle.

To do so, it starts with a detailed picture of the world’s economies and markets. It then identifies themes. Pearson says credit themes are diverse and can re­flect changes in consumer behaviour, technology and demographics as well as the economic environment.

Schroders holds weekly credit theme meetings at which all the fixed-income fund managers discuss and debate new and existing themes. Once they have agreed on a list of themes, the credit research team conducts in-depth analysis to identify which bond issuers are likely to benefit – and which will lose out – as themes develop.

Although it can invest in various high-yield markets, the fund does not take any active currency positions. This means the fund gains the benefit of geographical diversification without exposure to currency movements.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Schroder High Yield Opportunities Fund Z Income GBP
Manager
Schroder Unit Trusts Limited
Type
Unit Trust
ISIN
GB00B5143284
Sector
£ High Yield
Launched
22/01/2010
OCF
0.72 %
Risk Rating
5
3 Year Sharpe
0.89
3 Year Alpha
-3.23
Yield
6.4 %
Benchmark
IA £ High Yield
The Fund aims to provide income and capital growth of between 4.5% and 6.5% per annum (after fees have been deducted) over a three to five year period by investing in fixed and floating rate securities worldwide. This cannot be guaranteed and your capital is at risk.
Holding %
LHC3 PLC 4.12% 2.12 %
Metro Bank Plc 5.5% 2.04 %
Royal Bank of Scotland Group plc 7.65% 1.94 %
Safari Holding Verwaltungs GmbH 5.38% 1.76 %
AlmavivA S.p.A. 7.25% 1.76 %
Energy Transfer Operating L P 6.25% 1.70 %
Promontoria Holding 264 6.75% 1.62 %
Saga Plc 3.38% 1.57 %
Mizzen Bondco Limited 7% 1.56 %
Matterhorn Telecom S.A. 4% 1.56 %
Name
Schroder Unit Trusts Limited
Address
EC2Y 5AU, London, United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

Daniel Pearson
Joined 09/17/2018

Daniel Pearson is a Credit Portfolio Manager who Joined Schroders from Cazenove in 2013. He has a focus on IG and HY auto, Business Services and Property sectors. Qualifications: BSc Business Administration from Bath University, ACCA and IMC.

Data provided by Morningstar.

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