Schroders to Add Brookfield Credit Team Managing $4 Billionby
Michelle Russell-Dowe and her group to join Schroders
Schroders seeks to expand hedge fund, Dasher says in interview
Schroders Plc, Europe’s largest publicly traded fund manager, is adding a team from Brookfield Investment Management that oversees more than $4 billion in assets.
The group of almost a dozen people is led by Michelle Russell-Dowe and focuses on products such as asset-backed securities and mortgage-backed securities, Karl Dasher, chief executive officer of North America and co-head of fixed income at Schroders, said by phone Monday. The unit will join with Schroders’ ABS team in New York, and the combined group will oversee more than $8 billion, according to a statement from the company that didn’t disclose terms.
Russell-Dowe’s team traces its roots to Hyperion, a firm that was founded by Lewis Ranieri, a pioneer in the asset-backed securitization market, Dasher said. The group’s investments range from low-volatility, investment-grade strategies to a hedge fund that has less than $50 million in assets, Dasher said. The firm is seeking to build that fund to more than $1 billion, he said.
‘Room to Grow’
“This will continue to be an area that provides good risk-adjusted returns,” Dasher said of the ABS and MBS market. “That’s true for both individual investors through mutual funds as well as for institutional investors through specialized accounts.”
The seller’s parent, Toronto-based Brookfield Asset Management Inc., oversees $240 billion, with investments focused in infrastructure, real estate, renewable energy and private equity. The company agreed in 2014 to sell a unit to Conning & Co. The business in that transaction oversees money for insurers.
Schroders oversees more than $125 billion globally at its fixed-income business. That’s up from $25 billion in 2008, Dasher said. London-based Schroders manages more than $460 billion globally, according to the statement.
“We still have a lot of room to grow in this asset class,” Dasher said, referring to securitized products. “Brookfield and Schroders agreed that the assets at play here, the team and their capability, have better growth potential in our hands.”
The deal is expected to be completed in the third quarter, according to the statement. Suzanne Fleming, a spokeswoman for Brookfield, declined to comment.