Investors want outcomes—so does Schroders
Introducing two new fund solutions for investors seeking income and wealth preservation
New York - Schroders the $446.8 billion global asset manager, announced today the launch of two new U.S. mutual funds as part of its commitment to offer investors a broader set of global solutions.
The Schroder Global Multi-Asset Income Fund (GMAI) (Investor Shares ticker: SGMNX) is a diversified portfolio that seeks to maximize income and manage volatility by investing directly into both equities and fixed income securities around the globe. GMAI offers investors the potential to fulfill a broad range of goals, risk reduction and income both in and out of retirement.
The Schroder Global Strategic Bond Fund (Investor Shares ticker: SGBNX) is an actively managed portfolio with the flexibility to invest in the best opportunities throughout the fixed income universe. The Fund offers investors the potential for total return in different market environments—including periods of rising rates.
With the addition of these new funds, Schroders has grown its family to 15 different mutual funds, giving advisors a wider opportunity set to help meet the changing needs of their clients over the long term. “As a leading global asset manager, we are dedicated to providing solutions to address a variety of needs, and we are always looking for ways to expand our product availability in the U.S.,” said Karl Dasher, CEO of Schroder Investment Management North America Inc. and Co-Head of Fixed Income. “We have been in steady growth mode in the U.S., and we believe these two funds offer a differentiated approach to the growing need for diversified investment income. This brings our stable of income-oriented mutual funds to 7, each with a unique value proposition and role in client portfolios. We are committed to being a partner of choice to advisors and their clients in the provision of income solutions."
Global Multi-Asset Income
The Global Multi-Asset Income Fund seeks to generate an attractive level of income on a sustainable basis through security selection and dynamic asset allocation, while seeking to deliver capital growth over the medium to longer term. The Fund’s benchmark is unconstrained which enables the team to be flexible in its search for the best risk-adjusted income opportunities across regions, asset classes and sectors. The Fund will be well diversified and invested directly into equity and fixed income securities, while focusing on high quality companies with positive cash flow and strong balance sheets. There is also a strong focus on risk management at both the security and portfolio level, in seeking to minimize the volatility of investor capital. The Fund’s portfolio managers draw on the expertise of over 100 investment professionals in the Multi-Asset team who manage $91 billion for clients around the world as of March 31, 2014. The Fund is the U.S. version of a substantially similar fund managed by Schroders for non-U.S. investors, which recently marked its two-year anniversary after delivering on its objectives since inception and has $5 billion in assets under management with investors across Asia, Europe, Latin America and the Middle East as of June 13, 2014.
The search for income has increased due to lower bond yields, changing demographics and lower global growth prospects. The Fund was created in response to the challenges and aims to help investors who need to draw income from their portfolios but do not want to move into higher risk asset classes. The Schroders’ solution mitigates the risks posed by single-asset-class income funds, which are often highly concentrated and will not necessarily fare well in a rising interest-rate environment.
“Our risk management approach and focus on the sustainability of income seeks to cushion the gradual phasing-out of the Federal Reserve’s tapering and raising of rates,” said Nicolaas Marais, Head of Multi Asset Investments and Portfolio Solutions for Schroders. “One of our key goals is to offer a strategy that not only works when rates are low, but also seeks to outperform traditional income investments when rates begin to rise. We believe we can provide a more attractive yield, return, and risk profile, than single asset class income funds. This is a true outcome-oriented solution for investors.
“What we’re trying to do is to reach an income level that’s attractive to investors, but also backstop that with both capital protection and an opportunity for capital appreciation,” he added.
Global Strategic Bond
The Global Strategic Bond Fund aims to seek out the best opportunities in global bond markets and provide the greatest investment potential. The Fund enables investors to invest tactically and strategically across the whole spectrum of global fixed income sectors, regions, asset classes and FX. We believe this provides a market rich opportunity for alpha generation. It is essentially a multi-sector fixed income product with a twist—and the twist is that the strategy aims to avoid any directional bias to generate a positive return in any market environment over the long term. “That means the product is designed to generate a positive return whether interest rates rise or fall, or whether credit spreads narrow or widen,”said Bob Jolly, Head of Global Macro for Schroders and lead portfolio manager, with more than 30 years of investment experience. “The goal is to build a portfolio that is diversified in terms of alpha sources and investment horizon.”
Bob Jolly and Gareth Isaac, Senior Portfolio Manager, lead a highly experienced portfolio management team backed by Schroders’ integrated and experienced Global Fixed Income Group. The investment team is able to leverage Schroders’ global research capabilities across asset classes and regions. This combination of analysis allows for valuable, in-depth insights, with the added benefit of local market intelligence. “When we say we’re global, we mean that we have an integrated and experienced team with a local presence in countries around the globe. Our members meet daily to discuss developments in world markets,” Mr. Jolly added.
The fund uses a substantially similar strategy as a fund which Schroders launched in Europe in September 2004.
At Schroders, we are always looking to create innovative solutions to help respond to client needs. These two new funds achieve this and further strengthen our partnerships with clients.
Please consider a fund’s investment objectives, risks, charges and expenses carefully before investing. For a free prospectus, which contains this and other information on any Schroders fund, visit www.schroderfunds.com or call (800) 730-2932. Read the prospectus carefully before investing.
It is possible to lose money on an investment in the Funds. Each Fund will be affected by the investment decisions, techniques, and risk analyses of the Fund’s investment team, and there is no guarantee that either Fund will achieve its investment objective. The values of investments held by either Fund may fluctuate in response to actual or perceived issuer, political, market, and economic factors influencing the financial markets generally, or relevant industries or sectors within them. Fluctuations may be more pronounced if a Fund invests substantially in one country or group of countries or in companies with smaller market capitalizations. Other principal risks of investing in the Funds include: Portfolio Turnover, Emerging Market Securities, Foreign Investment, Currency, Interest Rate, Credit/High-Yield, Non- Diversification, Valuation Risk, Inflation/Deflation Risk, Derivatives, Liquidity Risk and Convertible Securities. Please see the prospectus for a more detailed description of the principal risks associated with the Funds.
About Schroder Investment Management North America Inc.
Schroder Investment Management North America Inc. is a unit of Schroders plc (SDR.L), a global asset management company with approximately $446.8 billion under management as of March 31, 2014. Schroder’s clients include major financial institutions including banks and insurance companies, as well as local and public authorities, public and private pension funds, endowments and foundations,intermediaries and advisors, as well as high net worth individuals and retail investors. The firm has built one of the largest networks of offices of any dedicated asset management company with more than 400 portfolio managers and analysts covering the world's investment markets, offering a comprehensive range of products and services.
Schroder Investment Management North America Inc. is an investment advisor registered with the U.S.SEC. It provides asset management products and services to clients in the U.S. and Canada including Schroder Capital Funds (Delaware), Schroder Series Trust and Schroder Global Series Trust, investment companies registered with the SEC (the "Schroder Funds").
Shares of the Schroder Funds are distributed by Schroder Fund Advisors LLC, a member of FINRA.Schroder Investment Management North America Inc. and Schroder Fund Advisors LLC are indirect,wholly-owned subsidiaries of Schroders plc, a U.K. public company with shares listed on the London Stock Exchange.
For additional information about Schroders, go to www.schroders.com/us
Schroders has expressed its own views and opinions in this document and these may change.
The views and forecasts contained herein are those of Schroder Investment Management North America Inc. and are subject to change. The information and opinions contained in this document have been obtained from sources we consider to be reliable. No responsibility can be accepted for errors of facts obtained from third parties. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions.
The views and opinions contained herein are those of Schroders' investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.'s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.