Schroders to convert Strategic Bond into absolute return

Schroders is converting its £380m Strategic Bond fund into an absolute return portfolio in anticipation of rising interest rates.

The fund will move from the IMA £ Strategic Bond sector to the IMA Absolute Return sector on 13 June, with a new goal to deliver a positive return over 12-month rolling periods. Schroders said the change would provide managers Bhupinder Bahra and Frederick Bourgoin with greater flexibility and the ability to profit from a rising interest rate environment. “The Schroder Strategic Bond fund will be renamed the Schroder Absolute Return Bond fund and be repositioned in the IMA Absolute Return sector," the group said. “The fund will invest primarily in a portfolio of bonds and other fix...