The fund will be launched specifically for Isaac, who joined from GLG at the end of last year, subject to regulatory approval. But it is not yet known when the fund will come to market, Schroders said.
Isaac previously managed a sterling bond fund, a total return bond fund and a gilt fund when at GLG.
In June last year Schroders moved its then Strategic Bond Fund (launched in 2003 and managed by Bhupinder Bahra and Frederick Bourgoin) into the IMA Absolute Return Sector and renamed it the Absolute Return Bond Fund.
A spokesperson for the firm said that decision was taken because the fund was managed with an absolute return over rolling 12 month periods basis and so it fitted the Absolute Return Sector better.
Isaac then joined in October and the decision was made to create a fund to play to his experience and strengths. There was also a sense that following the shift of the previous Strategic Bond Fund Schroders wanted to make sure it had a competitive offering in that sector.
"It is such a well-known, well-regarded and popular sector. The idea is to make sure we have a competitive fund in that sector.
The alternate manager on the Strategic Bond Fund is Bob Jolly, head of global macro at Schroders, who previously worked at Gartmore for more than 20 years and UBS.
The fund will be benchmark unconstrained and invest in fixed income across the spectrum and across the globe.
Additionally, the fund may use derivatives to limit downside risk, with 80% of the portfolio being hedged back to sterling.