Schroders broadens investment scope on trio of bond funds

Schroders has widened the scope of three of its leading bond funds to allow the managers to use derivatives more widely within their portfolios.

The group has gained FSA approval for the £158m Corporate Bond fund, £381m Gilt & Fixed Interest fund, and £239m Monthly High Income fund to operate with the full range of investment powers available under the UCITS directive. There will be no changes to the investment objective of the portfolios. “Having the full scope of powers available will provide the manager greater flexibility to meet the investment objectives and allow the funds to be managed more effectively. The use of financial derivative instruments could lead to a higher volatility in the unit price of the funds and a hig...