Schroders partners with US alternative investment specialist Oaktree to launch Schroder GAIA Oaktree Credit fund
12 May 2021
Schroders today announces the launch of the Schroder GAIA Oaktree Credit fund, a global multi-strategy credit portfolio that offers investors access to high-conviction liquid credit opportunities.
Investors will now be able to access Oaktree Capital Management L.P’s (“Oaktree”) Global Credit Strategy through Schroders’ alternative UCITS platform.The Oaktree strategy, which was launched in 2017, has an extensive track record with over $5.3 billion of assets under management (AUM) as at 31 December 2020.
The fund will harness Oaktree’s extensive credit expertise to create a highly diversified liquid portfolio that invests across U.S. and European high yield bonds, corporate and real estate structured credit, emerging markets debt and global convertibles.
Bruce Karsh, Oaktree’s Co-Chairman and Chief Investment Officer, will be the lead manager of the fund alongside David Rosenberg, Managing Director and Co-Portfolio Manager, Oaktree Capital Management.
Founded in 1995, Oaktree specialises in alternative investments, with $148 billion in AUM as of 31 December 2020. The firm seeks to deliver an opportunistic, value-oriented and risk-controlled approach to credit, private equity, real assets and listed equities.
The launch of this scalable fund marks the beginning of what Schroders expects will be a long-term partnership between the two firms, building on Oaktree’s suite of liquid and illiquid credit capabilities including senior loans, private credit and illiquid stressed/distressed opportunities.
Andrew Dreaneen, Head of Alternatives, Schroders, commented:
“At Schroders, clients are always at the forefront of our investment strategy. Our partnership with Oaktree is a continued reflection of this commitment as we remain focused on identifying and delivering investments which meet their evolving demands.
“This strategy’s opportunistic approach, whilst retaining its focus on fundamental value and downside protection, is therefore an excellent addition to the Schroder GAIA platform. We remain committed to providing investors with access to high-quality alternative managers in a liquid and regulated format.”
The fund is available on the Schroder GAIA platform, which continues to grow with nine strategies and $6.2bn as at 31 December 2020.
Bruce Karsh, Portfolio Manager of Schroder GAIA Oaktree Credit, commented:
“When choosing a partner, we first and foremost ensure our alignment of core values. Schroders, like Oaktree, has built a reputation from creating value for clients over the long term.
“The alternatives business is a key strategic initiative for Schroders, and we are very pleased to be able to partner with them to combine our expertise with their considerable scale and global reach.”
Bruce also chairs Oaktree’s Global Credit Investment Committee, which plays an integral role in the fund’s investment process, including asset allocation. This highly renowned group includes Oaktree’s Head of Performing Credit and Strategy Portfolio Managers with an average of 23 years of industry experience.
Howard Marks, Co-Chairman of Oaktree, commented:
“We are delighted to partner with Schroders to make our Global Credit strategy available to investors via the Schroder GAIA platform.
“The fund will invest in high-conviction opportunities across credit asset classes globally while aiming to limit volatility through diversification. We were pioneers in many of these asset classes and Schroder GAIA Oaktree Credit will provide investors with access to our deep expertise in relative value credit investing.”