Schroders has reached an agreement with Brookfield Investment Management to acquire its securitised products investment management team with more than USD4 billion in assets under management.
The team is led by Michelle Russell-Dowe, Managing Director and Head of Securitised Products Investments at Brookfield, and will combine with Schroders' existing New York based ABS team. The combined team will oversee more than USD8 billion, with significant capacity for further growth.
The team also manages an Irish qualifying investor alternative investment fund (QIAIF), which will become an important component of the firm's extension into alternative investments. These assets will be managed under the Schroders brand, with full access to the firm's asset management platform, economists, research and risk management capabilities.
Karl Dasher CEO North America and Co-Head of Fixed Income at Schroders says: "This acquisition deepens our capabilities in one of the largest and most research intensive credit sectors globally. The process developed by Michelle and her team over two decades has delivered one of the longest and strongest track records in the sector with an extensive network of industry relationships. This will strengthen our investment capability for both US and non-US investors seeking higher return opportunities within fixed income."
Russell-Dowe says: "Our team is very excited to become part of Schroders. We feel the organisation, investment approach and environment will be a great fit for our team and our clients, which will benefit from the deep resources and capabilities Schroders has to offer globally. We look forward to working with Schroders to build on the exciting opportunities available in a changing fixed income landscape."
Schroders has a diversified and expansive fixed income capability globally, which includes credit, multi-sector, rates, emerging market debt, municipals, convertibles, currencies and has now enhanced existing ABS and MBS capabilities. The Fixed Income team manages over USD125 billion in assets under management across the regions and is supported by an investment staff of over 150 individuals including portfolio management, research, analytics, risk and product and portfolio management.
Financial terms of the transaction, which is expected to close in the third quarter if 2016, have not been disclosed.