Schroder Investment Management Limited
31 Gresham Street, London EC2V 7QA
Telephone +44 (0)20 7658 6000 Fax +44 (0)20 7658 6965
www.schroders.com
News Release
Schroders launches BSP Credit strategy
on GAIA platform
17 June 2015
Today, Schroders is pleased to announce the launch of Schroder GAIA BSP Credit, an externallymanaged fund on its GAIA platform1.
The fund is a fundamental credit long short strategy that applies a bottom-up approach, combining
deep credit analysis, sophisticated structuring and active trading to maximise expected returns while
limiting downside risk.
Investing primarily in global high yield corporate credit with a focus in the US, the fund will aim to
generate attractive risk-adjusted returns in both up and down markets and provide investors with an
absolute return of 5-7% per annum.
With reduced exposure to directional market trends and a lack of correlation to various indices, the
fund will be positioned to maximise downside protection and outperform during market selloffs.
Thomas Gahan, a seasoned investment professional with over 30 years of credit experience, leads
the team as CEO of BSP and CIO of the long short strategy along with co-portfolio managers David
Ren and Josh Passman. The credit long short team will follow the same research process employed
in the existing strategy to identify and exploit mispriced credits on both the long and short side.
Since the long short credit strategy’s inception in February 2011, the strategy has generated an
annualised return of 5.9% net of fees with a volatility of approximately half the long-only index2.
1
GAIA (Global Alternative Investor Access) is Schroders’ alternative UCITS platform designed to offer investors
access to alternative strategies in the liquid, transparent and regulated UCITS format.
2
Source: BSP as at 30 April 2015
Schroders plc
Registered office at above address
Reg. 3909886 England
1
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Schroder Investment Management Limited
31 Gresham Street, London EC2V 7QA
Telephone +44 (0)20 7658 6000 Fax +44 (0)20 7658 6965
www.schroders.com
The greater BSP credit platform currently manages over $10 billion3 on behalf of clients with over 50
investment professionals based in New York.
Thomas Gahan, CEO and CIO of BSP and the fund manager, commented:
“We’re delighted to partner with the Schroder GAIA team as one of the leading UCITS distribution
platforms. Over the past couple of years, credit market yields have approached historic lows, and the
relentless reach for yield has allowed investors to ignore differences in credit quality. Our alphacapture strategy is designed to exploit these mispricing inefficiencies, equipping us to thrive and
outperform when market volatility increases and spreads widen.”
Eric Bertrand, Director of GAIA platform, added:
“We are constantly on the lookout for high-quality hedge fund managers to join our Schroder GAIA
funds. BSP and Thomas Gahan bring a wealth of experience in the US and global credit markets and
an impressive track record of strong performance. This fund will be of interest to investors seeking
above average returns with low correlation to the broad markets and in a manner that aims to
preserve capital. The strategy is complimentary to the GAIA offering, providing our clients the
opportunity to access credit opportunities globally.”
The GAIA platform was launched in November 2009 and has now reached $5.2bn in assets under
management.4 It combines the strength of Schroders’ renowned asset management expertise and
extensive distribution capability with leading hedge fund managers. Schroder GAIA offers access to
liquid alternative investment strategies with moderate to low correlations to mainstream market returns
within a Luxembourg mutual fund format subject to the ‘gold standard’ UCITS regulations.
Following the launch there will be five externally managed funds on the platform, Schroder GAIA
Egerton Equity, Schroder GAIA Sirios US Equity, Schroder GAIA KKR Credit, Schroder GAIA Paulson
Merger Arbitrage and Schroder GAIA BSP Credit.
3
Source: BSP as at 30 April 2015
4
Source: Schroders as at 30 April 2015
Schroders plc
Registered office at above address
Reg. 3909886 England
2
For your security, communications may be taped or monitored
Schroder Investment Management Limited
31 Gresham Street, London EC2V 7QA
Telephone +44 (0)20 7658 6000 Fax +44 (0)20 7658 6965
www.schroders.com
For further information, please contact:
For further information please contact:
Estelle Bibby, Senior PR Manager
Tel: +44 (0)20 7658 3431
estelle.bibby@schroders.com
Lucy Cotter, PR Executive
Tel: +44 (0)20 7658 6168
lucy.cotter@schroders.com
Sarah Deutscher, Senior PR Manager
Tel: +44 (0)20 7658 6139
sarah.deutscher@schroders .com
Notes to Editors
For trade press only. To view the latest press releases from Schroders visit:
http://ir.schroders.com/media
Schroders plc
Schroders is a global asset management company with £319.5 billion (EUR441.6 billion/$474.3 billion)
under management as at 31 March 2015. Our clients are major financial institutions including pension
funds, banks and insurance companies, local and public authorities, governments, charities, high net
worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate
from 37 offices in 27 countries across Europe, the Americas, Asia and the Middle East. Schroders
has developed under stable ownership for over 200 years and long-term thinking governs our
approach to investing, building client relationships and growing our business.
Further information about Schroders can be found at www.schroders.com.
Issued by Schroder Investment Management Ltd, which is authorised and regulated by the Financial
Conduct Authority. For regular updates by e-mail please register online at www.schroders.com for our
alerting service.
Benefit Street Partners
Benefit Street Partners LLC (BSP) is the debt investment arm of Providence Equity Partners LLC, a
$40bn** private equity/asset management firm. The team consists of over 50 investment professionals
led by Thomas Gahan, who formerly served as Global Head of Capital Markets at Deutsche Bank and
has 30 years of experience.
Schroders plc
Registered office at above address
Reg. 3909886 England
3
For your security, communications may be taped or monitored
Schroder Investment Management Limited
31 Gresham Street, London EC2V 7QA
Telephone +44 (0)20 7658 6000 Fax +44 (0)20 7658 6965
www.schroders.com
BSP credit platform currently manages $10.4bn* in AUM. The credit long short strategy has $1.4bn in
AUM, which includes ~$110m from staff investment.
*AUM refers to the assets under management for all credit funds and separately managed accounts
managed by BSP and its affiliates and are unaudited.
**Includes assets under management of credit platform and affiliate business, Merganser Capital
Management and is preliminary and subject to change.
Schroders plc
Registered office at above address
Reg. 3909886 England
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For your security, communications may be taped or monitored