News releases

Schroders launches Managed Monthly High Income Fund

23/04/2012

Schroders announces the launch of the Managed Monthly High Income Fund, a fund-of-funds vehicle investing in a selection of Schroder Maximiser and Schroder Fixed Income unit trusts. The Fund will be available to investors from 21 May 2012.

In an environment where income is difficult to find, investors will draw a monthly distribution from four different income sources: equities, bonds, property securities and income from volatility (via Schroders’ existing Maximiser range of funds). The monthly distributions will be approximately uniform, with a potential yield of 5.5%1 or more per annum.

Investors will gain access to eight of Schroders’ active investment strategies including four equity Maximiser funds: Income Maximiser, Asian Income Maximiser, ISF European Dividend Maximiser and Global Property Income Maximiser. On the fixed income side, the exposure will be to Sterling Broad Market, ISF Global High Yield, Strategic Bond and Absolute Return Bond Funds. This diversified approach will see asset allocation at 50:50 across equities and fixed income.

Thomas See, Head of Structured Fund Management and responsible for Schroders’ Maximiser fund range, will co-manage the fund along with Gareth Isaac, Senior Fixed Income Portfolio Manager.

Thomas See, Head of Structured Fund Management at Schroders and co-manager of the Managed Monthly High Income Fund said:

“This is a fund that pays a higher monthly yield from four well-diversified sources of income, several asset classes and multiple geographies, despite a difficult yield environment. By tapping into eight of Schroders’ actively managed investment strategies, we can help reduce the risk of relying on the performance of any single fund or strategy, while creating a diversified product with less volatility than a pure equity investment.”

1 Target yield is not guaranteed.

Robin Stoakley, Managing Director of UK Intermediary at Schroders, said:

“Given interest rates remain low and returns from cash after inflation can be negative, it’s difficult to find credible investments paying an attractive yield. The Fund offers investors low volatility, an attractive monthly income stream and the opportunity of some capital growth over the long term. ”

All annual management charges for the individual underlying funds will be rebated back to the fund-offunds; therefore only one single layer of fees will apply. The fund will sit in the IMA Mixed Investment 20-60% Shares sector and will be available in two share classes, the clean fee Z class as well as the A class. The annual management charges for the A and Z share classes will be 1.25% and 0.625% respectively.

Schroders’ Structured Fund Management Team, headed by Thomas See, manages over £1.4bn in Maximiser income enhancement strategies.

-Ends

For further information, please contact:

Kathryn Sutton Tel: +44 (0)20 7658 2589/ kathryn.sutton@schroders.com

Notes to Editors

For trade press only.

To view the latest press releases from Schroders go to: http://ir.schroders.com/media

Capital risk: The capital is not guaranteed.

Interest rate risk: Investment in bonds and other debt instruments including related derivatives is subject to interest rate risk. The value of the fund may go down if interest rate rise and vice versa.

Market risk: The Fund will not hedge its market risk in a down cycle. The value of the fund will move similarly to the markets.

Credit risk – debt securities: A security issuer may not be able to meet its obligations to make timely payments of interest and principal. This will affect the credit rating of those securities.

Credit risk – non-investment grade: Non-investment grade securities will generally pay higher yields than more highly rated securities but will be subject to greater market, credit and default risk.

Liquidity risk: The fund invests in other funds and its liquidity depends upon the liquidity of those underlying funds. If underlying funds suspend or defer the payment of redemption proceeds, the fund's ability to meet redemption requests may also be affected.

Derivatives: The derivative strategy is applied repeatedly over three-monthly periods. This strategy will increase the income paid to investors and reduce the volatility of returns, but there is the potential the performance or capital value may be eroded.

Schroders plc

Schroders is a global asset management company with £187.3bn (€224.2 billion, $291.0 billion) under management as at 31 December, 2011. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.

With one of the largest networks of offices of any dedicated asset management company, we operate from 32 offices in 25 countries across Europe, the Americas, Asia and the Middle East. Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.

Further information about Schroders can be found at www.schroders.com or on Schroders Talking Point www.schroders.com/talkingpoint.

Issued by Schroder Investment Management Ltd, which is authorised and regulated by the Financial Services Authority. For regular updates by e-mail please register online at www.schroders.com for our alerting service