Schroder Absolute Return Income Fund
Targeting stable income for investors with a focus on capital preservation and high liquidity (Wholesale Class APIR SCH0103AU).
Diversification
Invest in a broad universe of predominantly investment grade Australian and global fixed income assets, selected and managed with the aim of delivering reliable income and capital preservation.
Active management
Active management delivers a flexible approach to asset allocation and portfolio management in response to changing market and economic conditions.
Downside protection
Our active approach to portfolio management targets a steady income while seeking to limit losses in more challenging markets, whilst providing daily liquidity.
An absolute return income fund with the flexibility to manage risk
Reliable income can be an important goal for many investors, both before and during retirement. With a flexible approach to investing across domestic and global fixed income assets, the Schroder Absolute Return Income Fund can deliver an income boost, above the RBA cash rate, to portfolios while managing the risks within fixed income assets.
This absolute return strategy has a track-record of delivering steady returns with a significant component derived from income¹, with a strong focus on managing risk in case markets fall.
1The 5-year annualised income return for SARI wholesale class was 2.44%, and 2.56% for SARI professional class, as at December 2023. Past performance is not a reliable indicator of future performance and may not repeat.
About the Schroder Absolute Return Income Fund
The Schroder Absolute Return Income Fund is an actively managed fund that invests across the broad domestic and international fixed income universe, derivatives and currencies to seek out returns and income opportunities, while focusing on capital preservation.
More about the Fund
Portfolio manager Mihkel Kase explains the role of bonds, and how the Schroder Absolute Return Income Fund aims to offer investors peace of mind by targeting consistent income and protecting capital.
Why Schroders?
Investing with Schroders means investing in a global brand with strong heritage and outstanding capabilities in a broad range of asset classes. Since establishing our Australian office almost 60 years ago, we have grown to be trusted with $6.9 billion worth of assets from Australian investors across our fixed income portfolios.* Our 200+ global fixed income team are located in 13 offices* around the world and offer specialised, on the ground insights and analysis on a wide array of fixed income opportunities.
*As at December 2023.
A highly capable local team
With more than 20 years of experience in fixed income, our local fixed income team has broad knowledge and draws on Schroders’ global fixed income teams’ expertise to offer comprehensive coverage of this large and complex asset class. These capabilities allow the team to assess the appropriate risk and reward of the various investment opportunities available to generate consistent income while protecting investor capital.
Find out more about the Schroder Absolute Return Income Fund
Portfolio update
Portfolio manager Mihkel Kase delivers an update on how the Schroder Absolute Return Income Fund is positioned to take advantage of the recent repricing in bond markets and brace for recession concerns. He shares the latest on opportunities in bonds and credit, portfolio positioning, and performance for the September quarter.
Related documents
Fund ratings and awards
Meet our fund managers
Notice to investors
Temporary change of portfolio manager on Schroder Absolute Return Income Fund
Ways to invest in the Schroder Absolute Return Income Fund
Before investing in the Schroder Absolute Return Income Fund, please read the product disclosure statement (PDS), target market determination (TMD), the accompanying additional information booklet and the financial services guide (FSG). You can also learn more about investing directly by filling out our paper application form or online application form. You may also like to find out which platforms you can access the fund through. If you need help, please contact our team.
Invest directly
Complete the paper application form or online application form. The minimum investment amount is $20,000 for wholesale class, and $500,000 for professional class.
Contact our team
For further information about investing in the fund, please speak to a member of the Schroders team.
Platform availability
The Schroder Absolute Return Income Fund is available on several platforms. Please check with the platform operator for minimum investment requirements and fees.
The role of the Schroder Absolute Return Income Fund in your portfolio
Bonds can play a critical role in investors’ portfolios – including income generation, capital preservation and to guard against the volatility of more growth-oriented investments such as equities. The Schroder Absolute Return Income Fund offers investors a fixed income investment option with a strong focus on reliable income and capital protection.
The Schroder Absolute Return Income Fund is likely to be appropriate for a consumer seeking capital preservation and income for a small or core component of their portfolio, with a low to medium risk and return profile.
This product is unlikely to be suitable for a consumer seeking capital guarantee or consumers with a very high risk and return profile.
Disclaimers
Investment in this Fund may be made on an application form accompanying the current Product Disclosure Statement (PDS) for the Fund which is available from Schroder Investment Management Australia Limited (Schroders) (ABN 22 000 443 274, AFS Licence 226473). The information contained in this material is general information only and does not take into account your objectives, financial situation or needs. Before acting on the information contained in this material you should obtain a copy of the PDS and consider the appropriateness of the information in regard to your objective, financial situation and needs before making any decision about whether to invest, or continue to hold.
The repayment of capital and performance in the Fund is not guaranteed by Schroders or any other party. Opinions constitute our judgement at the time of issue and are subject to change. Past performance is not an indicator of future performance. Investment guidelines represented are internal only and are subject to change without notice. Schroders may record and monitor telephone calls for security, training and compliance purposes.
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned APIR: SCH0103AU, March 2024) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.
The rating issued 10/2021 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit www.lonsec.com.au for ratings information and to access the full report. © 2023 Lonsec. All rights reserved.
Schroder Absolute Return Income Fund - Professional and Wholesale Class has received a Morningstar Medalist RatingTM of 'Bronze' on 20/12/23. ©2023 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the con-tent providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. This report or data has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or New Zealand wholesale clients of Morningstar Research Ltd, subsidiaries of Morningstar, Inc. Any general advice has been provided without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide at www.morningstar.com.au. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Morningstar’s publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Morningstar’s full research reports are the source of any Morningstar Ratings and are available from Morningstar or your adviser. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a financial adviser.