Appreciate global fixed income potential
In today’s climate of low interest rates and increasingly tough stock market conditions, many investors are understandably cautious about the best way to earn reliable yields. Schroders’ top-class investment teams provide the below fixed income portfolios. The team’s wealth of experience, resources, dedicated research and robust risk management strategies aim to help investors achieve investment outcomes.
Why invest in the Schroder ISF Global High Yield^?
Global strength with local peace of mind
Maintaining a strong presence in major markets across Europe, Asia and the Americas, Schroders has a global team of credit experts who evaluate markets at the macroeconomic, sector and individual bond issue level. This means that our fund management team can fully explore any advantage we feels the market may not yet have identified. To ensure your added reassurance, our experienced local in-country specialists carefully select and monitor bonds across global markets.
Proven risk management culture
Risk management has always been part of our culture and is factored into everything that we do. Equally important, our professionals reduce possible interest rate and credit risks by using effective investment strategy. Should we choose to pursue an investment opportunity, it is because it has been rigorously researched and found to have the potential of compelling risk-adjusted returns.
Monthly payout in a choice of currency classes
The fund enables you to receive your monthly dividends in a choice of USD, HKD and AUD hedge classes that mirror your unique personal needs and circumstances.(Distribution rate is not guaranteed, and payment of distributions could be paid out from capital)*
Flexible cap size allocation
While benchmark aware, our fund managers are not restricted to solely investing in offerings from larger issuers. As a result of its positions in mid-sized markets, the fund often benefits from advantages and delivers real flexibility whenever and wherever portfolios need to be adjusted.
"Bond markets are global, interrelated and generally efficient, but can overreact to events. Our globally integrated team of specialist analysts and portfolio managers, researching ideas in local markets, can provide performance advantage."
Wesley Sparks, Lead Fund Manager, Schroder ISF Global High Yield
Investment Grade (Left)
Many investors may permit exposure only to higher-rated securities such as investment grade corporate bonds – rated Baa3/ BBB– or higher by rating agencies – because they are relatively low risk and typically unlikely to default.
High Yield (Right)
For investors who seek higher income, high yield bonds – which have lower credit ratings than investment grade bonds – pay higher yields because of the higher risk of default and generally provide higher potential returns.
Why invest in the Schroder ISF Hong Kong Dollar Bond^?
The fund mainly invests in Hong Kong government bonds (including both government and semi-government issues) which have demonstrated low volatility with low default risk. With strong financial strengths, the Hong Kong government has maintained good investment grade credit ratings by Standard & Poor’s, Moody’s and Fitch.
In addition to Hong Kong government bonds, the fund also seeks to add value by investing in Hong Kong dollar denominated bonds issued by supranational organisations, top international banks and institutions.
Leveraging on our global credit expertise, the fund seeks to capitalise on global and regional macro trends by actively allocating the portfolio across various short-term and long-term debt securities.
Monthly income distributions
The fund offers a distribution share class with monthly dividend payouts (if any), providing investors with a stream of income. (Distribution rate is not guaranteed, and payment of distributions could be paid out from capital)*
^Schroder International Selection Fund is referred to as Schroder ISF.
*In respect of the distribution units, the manager will declare and pay monthly distributions. However, the distribution rate is not guaranteed. Distribution yield is not indicative of the return of the fund. Distribution 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.