Schroders is set to buy STW Fixed Income Management, a value-orientated US fixed income manager, in its entirety.
The Californian-based firm with €9 billion in assets under management invests exclusively in investment-grade fixed income and will account for a third of Schroders' US income management once the deal is complete.
'This acquisition increases our assets under management in US fixed income by 50% to US$35 billion, broadens our product and service platform in fixed income and extends our institutional client base in the US,’ commented Michael Dobson, chief executive of Schroders.
Around half of STW's existing clients are instititional investors with the majority being US corporate and public pension funds.
The transaction is expected to be completed in the first quarter of 2013 and follows Schroders' acquisition of the Indian asset management firm Axis in September this year.