Schroders approached GCP Asset Backed Income in bid to win investment mandate from Gravis

investmentweek.co.uk:

The proposal included shifting the trust’s investment strategy to focus on real estate debt, with the firm’s $88bn private assets arm, Schroders Capital, running the mandate | Credit: iStock

Sources with knowledge of the matter told Investment Week that Schroders' investment trusts sales team approached a number of shareholders at the beginning of 2023 to gather their views on potentially taking over the mandate. 

The proposal included shifting the trust's investment strategy to focus on real estate debt, with the firm's $88bn private assets arm, Schroders Capital, pitched to run the mandate. 

The firm also approached the board, the sources said.

Gravis trusts GCP Infra and GCP Asset Backed Income end merger talks

However, the board instead opted to propose the merger of GABI's assets with GCP Infrastructure, a trust also run by Gravis, in August. The Gravis merger talks were terminated in September after a number of shareholders opposed the deal.

Gravis and GCP Asset Backed Income declined to comment. Schroders said it does not comment on «market speculation».

Schroders' plan to take over the mandate from Gravis followed the sudden departure of the trust's lead fund manager, David Conlon, in October 2022, and the resignation of co-manager Joanne Fisk in May this year. 

Philip Kent, fund manager at GCP Infrastructure and director at Gravis, stepped in to oversee the trust following the departures. In July, GABI said Gravis had agreed terms with a chief investment officer who would join the firm in October, but the appointment has yet to be announced.

Gravis trusts GCP Asset Backed Income and GCP Infrastructure agree to combine assets

The trust, which invests in a portfolio of medium- to long-term fixed or floating rate