Schroders has a highly experienced team of credit experts based all over the world. We research companies thoroughly and use state-of-the-art tools and techniques to crunch the numbers and seek to make the optimum investment decisions for our clients.
Schroder ISF Global Credit Income aims to deliver a stable stream of income in all market environments by investing dynamically across the global bond market. The fund also focuses on managing risk to mitigate volatility.
Bonds are popular investments for people seeking income. While interest rates are still at low levels, by investing across the global bond market, the fund can combine various types of bonds to provide a relatively attractive level of income with a sensible balance of risks. The fund’s primary objective is to maintain sustainable and attractive distribution payments, and intends to make a fixed payout of 5.25% per annum^.
Managed with a benchmark-unconstrained approach, the fund is not tied down to an index and therefore not limited to what bonds it can invest in. Bonds of different types and regions offer different levels of potential return. We can invest across the global bond market wherever we find attractive income opportunities. We aim to deliver a consistent and attractive level of income in all market environments by investing freely across the global bond spectrum including investment grade, high yield, emerging market sovereign and municipal bonds, asset-backed securities, and so on. Having a broad investment universe also helps us to diversify risk effectively.
We recognise that investors seeking income can be more sensitive to capital loss. Dynamic asset allocation informed by scenario correlation analysis allows the fund to reduce risk during market downturns with a well-diversified bond portfolio. Detailed drawdown risk analysis as well as risk management on currency and interest rates are incorporated with an aim to help the fund mitigate potential loss and volatility relative to the global credit market.
Schroder International Selection Fund is referred to as Schroder ISF.
~ The fixed payout of share classes A Distribution – USD and A Distribution HKD has been changed from 4.5% p.a to 5.25% p.a., this change will come into effect for the distribution due to be paid in February 2019 and will apply to all distributions going forward.
* For share classes with a general dividend policy, expenses will be paid out of capital rather than out of gross income. The amount of distributable income therefore increases and the amount so increased may be considered to be dividend paid out of capital. Share classes with a fixed dividend policy may pay out both income and capital in distributions. Where distributions are paid out of capital, this amounts to a return or withdrawal of part of your original investment or capital gains attributable to that and may result in an immediate decrease in the net asset value of shares.
^ The manager will make distributions in respect of distribution units. The manager has the sole and absolute discretion to vary the rate and/or frequency of distributions, subject to one month’s prior notice to the relevant unitholders. Distribution yield is not indicative of the return of the fund. Distributions may be paid from capital of the fund. Investors should note that where the payment of distributions are paid out of capital, this represents and amounts to a return or withdrawal of part of the amount you originally invested or capital gains attributable to that and may result in an immediate decrease in the value of units. For details of the distribution policy and frequency of all share classes, please refer to the Distribution calendar and policy.
Source: Schroders. Investment involves risks. Please refer to the relevant offering documents for fund details including risk factors. This material is issued by Schroder Investment Management (Hong Kong) Limited and has not been revised by the SFC.