Schroders' Michael Scott, manager of the award-winning £739m High Yield Opportunities fund and other bond strategies, is leaving the group after 12 years to join Man GLG.
Scott will remain at Schroders until the middle of Q4 and then move to Man GLG in December, where he will be a portfolio manager within its credit business. Based in London, he will work closely with Man GLG's Credit CIO Simon Finch, who joined the firm earlier this year.
At Man GLG, Scott will focus on developing an unconstrained global high yield credit strategy and building out the group's overall high yield capabilities and offering.
It is understood the new fund will be focused on fundamental security selection and credit allocation within a themes-based framework and is expected to launch in late Q4 2018 or early Q1 2019. Scott will also be supporting Man GLG's existing multi-strategy credit portfolios.
Scott's appointment is part of the expansion of Man GLG's credit platform, following the recent hires of managers Craig Veysey and Francois Kotze from Sanlam FOUR and the acquisition of its strategic bond strategy. As at 30 June 2018, Man GLG has $38.4bn in AUM, of which $14.4bn is in fixed income and credit.
Commenting on the appointment, Teun Johnston, CEO of Man GLG, said: "Mike is an experienced portfolio manager with an established track record in managing credit strategies. His appointment is another exciting addition to Man GLG's growing credit platform, following other recent senior investment hires in this area, and we look forward to his contribution to the business."
Scott added: "Man GLG is an alpha-focused investment manager with robust infrastructure and a history of effectively integrating portfolio managers and investment teams. I look forward to joining the team at an exciting time for the credit business, which continues to expand in size and breadth of expertise, and to building out a broader high yield offering at the firm."
Schroders bond team structure
At Schroders, Scott is a portfolio manager in the European and UK credit team, overseeing approximately $4.2bn.
He is lead manager of the Schroder High Yield Opportunities fund, which won the Global High Yield category at the Investment Week Fund Manager of the Year Awards for two years running in 2017 and 2018. The fund is the top-performing strategy in the IA £ High Yield sector over one, three and five years, according to FE.
Scott is also lead manager for the £144.6m Schroder Strategic Bond fund, as well as co-manager of the $682.4m Schroder ISF Global Credit Income and $2.3bn Schroder ISF Global High Yield strategies.
Existing members of the team Patrick Vogel, Daniel Pearson and Konstantin Leidman will now take on Scott's fund management responsibilities.
Vogel will continue to manage the SISF Global Credit Income fund, and take responsibility for the Schroder Strategic Bond fund as these two funds share similar investment process characteristics.
Meanwhile, Martha Metcalf will continue as lead manager of the SISF Global High Yield fund, with Leidman as co-manager.
A Schroders spokesperson said: "After 12 years at Schroders, Michael Scott has decided to leave to pursue opportunities outside of the firm. We would like to thank Michael for his contribution and wish him every success for the future.
"Michael will remain with Schroders until mid Q4 2018 and will work closely with the team to ensure a smooth handover of his responsibilities.
"We have a strong, team-based approach and a robust investment process, which is designed to ensure continuity in the management of our fixed income portfolios. We are confident that we will continue to deliver an excellent service to our clients within the portfolios affected by Michael's departure.
Scott joined Schroders in 2006 and initially spent four years as a European industrials credit analyst, covering investment grade and high yield. He began his career at Cazenove Capital Management and has 13 years of credit experience.
The Schroders High Yield Opportunities fund has lost FundCalibre's elite rating due to Scott's move.
Darius McDermott, managing director of FundCalibre, commented: "Schroders' loss is Man GLG's gain.
"Michael is an excellent fixed income fund manager and Man GLG is obviously very serious about bolstering its fixed income team.
"It has now attracted two very good and high profile managers to the company, with Craig Veysey also moving from Sanlam. It is an exciting new phase for Man GLG and those joining them.
"Schroders has a very strong credit team, all of whom use the same investment process."