Schroder Global Multi-Asset Income Fund

Sustainable income in a changing world
A powerful income strategy for clients seeking yield across market environments.

Schroder Global Multi-Asset Income Fund

Fund at-a-glance

Investment Objective

The Fund seeks to provide income and capital growth over the medium to longer term.

Approach

Disciplined, yet flexible approach to build a directly invested portfolio diversified across global equities, global bonds and alternative asset classes.

Focus on quality

We do not chase the highest yields, but rather seek investments that we believe will generate sustainable yield and are backed by stable fundamentals, while also seeking capital growth.

Risk management

Active risk management seeking to reduce volatility.

Rising to the income challenge

The Schroder Global Multi-Asset Income Fund has been designed to help investors seeking income in the current low growth, low yield environment where traditional sources of income can no longer fulfill their requirements. It aims to provide an attractive, regular and sustainable income without a correspondingly heightened exposure to risk.

The Schroder Global Multi-Asset Income Fund may be able to provide a complete income solution for a broad range of investors. For example:

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Retirees who are seeking an alternative to purchasing an annuity.
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Investors who require a consistent income to, for example, help fund education.
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Pre-retirees and other investors who are seeking to build capital with a moderate level of volatility.

Our investment approach

Utilizing an established investment approach that is focused on quality and unconstrained by benchmarks, the Schroder Global Multi-Asset Income Fund:

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Invests across a diversified global portfolio

2

Employs dynamic asset allocation and active security selection

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Seeks to maximize income on a sustainable basis

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Targets an attractive, risk-adjusted yield

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Maintains a strong focus on capital preservation

Targeting clear outcomes

For nearly 70 years, the Multi-Asset team has been managing asset allocation for clients around the globe. Our investment process focuses on quality, diversification and liquidity with the goal of generating income while mitigating risk.

 

How we look to ensure sustainability

Quality
  • Invests in companies with strong balance sheets and stable cash flows
  • Overall portfolio has a maximum 5% exposure to CCC or lower
Diversification
  • Up to 20 asset classes across the globe
  • Universe of 12,000+ potential securities
Liquidity
  • Direct investments in liquid listed securities
  • No loans or private equity

Guiding principles

Global Multi-Asset Income Fund
Guiding Diagram 2
Unconstrained
Global
Flexible

A proven strategy

The Schroders Multi-Asset Team has extensive experience managing income-focused portfolios and currently has over $4.5 billion invested on this basis globally.

Meet the manager and team

Schroders Multi-Asset Investments and Portfolio Solutions is one of the largest and most experienced asset allocation teams in the world. Since 1946 we have been dedicated to helping our clients achieve their investment goals. The 100+ person group is international in its composition and thinking; we are UK-headquartered which shifts our perspective and have key decision makers in major financial centers around the globe. This enables us to identify and implement investment ideas in a unique way. We employ a strong team-based approach that is both collaborative and collegial.

Aymeric Forest

Aymeric Forest, CFA

Lead Portfolio Manager

Circles
Years of
investment
experience
20
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Overview

Aymeric joined Schroders in 2011 and is the lead portfolio manager for the flagship Schroders Global Multi-Asset Income strategy. He is a member of the Global Asset Allocation Committee and the Volatility Risk Premia research group.

Qualifications

Aymeric holds a Master’s degree in Finance from Nancy 2 University (France), Giessen (Germany) and Lund (Sweden).

Investing in the fund

Investor Share (SGMNX)
Min $250,000
Advisor Share (SGMVX)
Min $2,500
For more information contact (800) 730-2932

The portfolio managers' five principles for income investing:

Investing in single asset classes for income can leave investors exposed to the specific risks inherent within those assets classes. Whether it is market risk in equities, liquidity risk in high yield debt or the political risk inherent in emerging market debt, these risks can lead to meaningful underperformance by particular asset classes. Investing across a spectrum of asset classes can help to diversify these risks with the potential to produce superior risk-adjusted returns.

One of the biggest risks in investing is the risk of permanent capital loss. Investing in higher yielding securities without paying attention to the security issuer's future ability to pay dividends or meet coupon and principal payments, risks permanent capital loss. We believe it is imperative to focus high quality securities that are able to sustain and grow their income.

Investors who are geographically restricted, for example by focusing too narrowly on their home market, have a reduced opportunity set compared to those investors who invest globally. Assets in certain regions can be expensive at points in time, while assets in other regions can simultaneously be cheap. Investing globally you can take advantage of opportunities in different regions whenever they present themselves.

Different asset classes offer value relative to other asset classes at different points in the economic cycle. A flexible and unconstrained approach should be taken when managing exposure to different income sources. This allows you to take advantage of relative value opportunities in different asset classes, styles and market cap size over time.

It is important to take into account liquidity risk to ensure that assets can be bought and sold with ease. It is also important to understand the amount of risk being taken and to examine how your portfolio will perform in different market environments. We believe an active approach to risk management, in order to understand the sources and portfolio implications of different types of risk, can assist in protecting a portfolio during turbulent markets.

Important information

Data as of June 30, 2016 unless otherwise noted.

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.
Main Risks

All investments, domestic and foreign, involve risks including the risk of possible loss of principal. The market value of the portfolio may decline as a result of a number of factors, including adverse economic and market conditions, price fluctuations of stocks in the portfolio, changing interest rates, and real or perceived adverse competitive industry conditions. Investing overseas involves special risks including among others, risks related to political or economic instability, foreign currency (such as exchange, valuation, and fluctuation) risk, market entry or exit restrictions, illiquidity and taxation. Emerging markets pose greater risks than investments in developed markets.

Disclaimers

Schroder Investment Management North America Inc. is an indirect wholly owned subsidiary of Schroders plc and is a SEC registered investment adviser and registered in Canada in the capacity of Portfolio Manager with the Securities Commission in Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec, and Saskatchewan providing asset management products and services to clients in Canada. This document does not purport to provide investment advice and the information contained in this newsletter is for informational purposes and not to engage in a trading activities. It does not purport to describe the business or affairs of any issuer and is not being provided for delivery to or review by any prospective purchaser so as to assist the prospective purchaser to make an investment decision in respect of securities being sold in a distribution.

Schroder Investment Management North America Inc. (“SIMNA 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. SIMNA Inc. and Schroder Fund Advisors LLC are indirect, wholly-owned subsidiaries of Schroders plc, a UK public company with shares listed on the London Stock Exchange.

Schroder Fund Advisors LLC, Member FINRA, SIPC, 875 Third Avenue, New York, NY 10022-6225, (800) 730-2932, www.schroderfunds.com.

Schroder Investment Management North America Inc. 875 Third Avenue, New York, NY 10022, (212) 641-3800, www.schroders.com/us.

NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE

Schroder Fund Advisors LLC, Member FINRA, SIPC
875 Third Avenue, New York, NY 10022-6225
(800) 730-2932 www.schroderfunds.com