Schroders has launched a European credit fund for manager Patrick Vogel which aims to identify and tap into credit "sweet spots" across the continent in order to achieve a high yield.
The Schroder ISF EURO Credit Conviction fund will focus on specific investment themes across Europe, investing primarily in euro-denominated bonds and other fixed and floating rate securities.
In particular, it will attempt to move away from core European credit where many funds are denominated, in order to offer a higher yield than competitors.
Vogel, who is also Schroder’s head of European credit, said with the eurozone economies moving into "stabilisation phase" there are more opportunities emerging, particularly in higher yielding investment grade bonds.
“This fund gives us the flexibility to focus our strategy on the investment opportunities which offer the best potential for returns," he said.
The fund, which launched on 18 December, is benchmarked against the iBoxx Euro Corporate BBB Index.
Schroders head of UK and international marketing Peter Beckett said: “Low bond yields across the board have forced investors to search for higher yielding investments.
"Schroder International Selection Fund EURO Credit Conviction allows us to offer an investment grade strategy that aims to deliver a higher yield than core investment grade euro credit funds, a proposition that we expect to be highly attractive to investors."
