Schroder Absolute Return Income (Managed Fund) Exchange Code: PAYS

Offering the potential for stable income with an absolute return managed fund. CBOE Ticker: PAYS

Global diversification

Provides diversification across broad Australian and global fixed income markets with flexibility to respond to changing market conditions.

Strong risk management

Actively managed to identify the best opportunities, aiming to avoid losses and preserve capital should markets fall.

Provides liquidity

PAYS’ unit price is quoted on the CBOE exchange, allowing investors daily access to their capital.

Introducing the Schroder Absolute Return Income (Managed Fund) Exchange Code: PAYS

The Schroder Absolute Return Income (Managed Fund) Exchange Code: PAYS is an actively managed exchange traded fund (ETF) seeking to boost income while preserving capital. The fund aims to deliver regular monthly income of 4.75% p.a.1

The fund invests across the broad fixed income universe, investing in predominantly Australian and international investment grade issuers, as well as currencies, to seek out returns and income opportunities while focusing on protecting capital and providing investors with liquidity.

Steady income on investments

This absolute return strategy has a track-record¹ of meeting investor needs for reliable monthly income, while providing peace of mind due to its strong focus on managing risk during periods of market turbulence.

It is important to note that, unlike with cash or term deposits, the capital value of the assets held within the fund may vary over time. This means that while its price is typically less volatile than listed equities, for example, the PAYS unit price can still go up and down. This potential for fluctuation in the unit price is tempered by the fact that even if the unit price drops, the Fund seeks to deliver more stable income in the form of distributions. The level of distributions is reassessed on a 6-monthly basis. In addition, and in contrast to term deposits, the unit price is listed on the CBOE, allowing investors ready access to their capital.

1 The Fund has, since its inception in November 2019, paid monthly distributions target of 4.75%p.a.

Why Schroders?

Investing with Schroders means investing with a global investment manager that has strong heritage and outstanding capabilities across a broad range of asset classes. Having established our Australian office almost 60 years ago, today we are trusted with $6.9 billion* in assets from Australian investors across our fixed income portfolios. Our 200+ global fixed income team are located in various offices around the world and offer specialised, on the ground insights and analysis on a wide range of fixed income opportunities.

*As at 31 December 2023

A highly capable local team

With more than 20 years’ experience in fixed income in Australia, the local Schroders fixed income team has broad knowledge and along with global colleagues offers comprehensive coverage of this large and complex asset class. This expertise allows the team to assess the appropriate risk and reward of the various investment opportunities available, to generate consistent income while protecting investors’ capital.

Learn more about Fixed Income investment at Schroders.

If you need to find out more about the Schroder Absolute Return Income (Managed Fund)

More about the Fund

Portfolio Manager Mihkel Kase explains the role of bonds, and how the Schroder Absolute Return Income (Managed Fund) aims to offer investors peace of mind by targeting consistent income and protecting capital.

Related documents

Slide 1 of 3
Product disclosure statement
Monthly report
Annual report
Slide 1 of 3
Target market determination
Cboe announcements
Portfolio holdings

Fund ratings and awards

Zenith_Recommended_Rating_Logo_528x400

Meet our fund managers

Slide 1 of 2

Kellie Wood

Head of Fixed Income, Australia

Adam Kibble

Fund Manager, Multi-Asset Australia

Notice to investors

Temporary change of portfolio manager on Schroder Absolute Return Income (Managed Fund).

Ways to invest

The Schroder Absolute Return Income (Managed Fund) is available on Cboe and can be traded using the exchange code: PAYS.

Before investing in the Schroder Absolute Return Income (Managed Fund), please read the product disclosure statement (PDS)financial services guide (FSG) and target market determination (TMD)  for the fund. If you need help, please contact our team.

The role the Schroder Absolute Return Income (Managed Fund) can play in portfolios

The fund aims to provide investors with stable and consistent returns in all market environments. This fund has been designed with the following investors in mind:

  • Income seekers – Investors who wish to increase income at potentially higher rates than banking or term deposits.
  • Investors nearing or in retirement – Investors who are seeking rate change protection and focused on capital preservation
  • Advisors or brokers seeking additional liquid, income-focused solutions to complement allocations in client portfolios.

The product 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.

End of Day pricing

DateEnd of Day Pricing

Distribution history (12 months)

Ex-date

Record date

DRP Election date

Pay date/Reinvestment date

CPU

Reinvestment price

3 June 2024

4 June 2024

5 June 2024

14 June 2024

3.72

9.3875

1 May 2024

2 May 2024

3 May 2024

13 May 2024

3.72

9.3684

2 April 2024

3 April 2024

4 April 2024

12 April 2024

3.72

9.3844

1 March 2024

4 March 2024

5 March 2024

13 March 2024

3.71

9.3615

1 February 2024

2 February 2024

5 February 2024

13 February 2024

3.72

9.3784

2 January 2024

3 January 2024

4 January 2024

12 January 2024

3.73

9.37

1 December 2023

4 December 2023

5 December 2023

13 December 2023

3.68

9.3092

1 November 2023

2 November 2023

3 November 2023

13 November 2023

3.66

9.2192

2 October 2023

3 October 2023

4 October 2023

13 October 2023

3.67

9.2424

1 September 2023

4 September 2023

5 September 2023

13 September 2023

3.68

9.2790

1 August 2023

2 August 2023

3 August 2023

14 August 2023

3.68

9.2868

3 July 2023

4 July 2023

5 July 2023

13 July 2023

3.29

9.2493

1 June 2023

2 June 2023

5 June 2023

14 June 2023

3.29

9.2732

1 May 2023

2 May 2023

3 May 2023

11 May 2023

3.31

9.3061

3 April 2023

4 April 2023

5 April 2023

17 April 2023

3.31

9.3216

1 March 2023

2 March 2023

3 March 2023

13 March 2023

3.31

9.3141

1 February 2023

2 February 2023

3 February 2023

13 February 2023

3.31

9.3457

3 January 2023

4 January 2023

5 January 2023

13 January 2023

3.30

9.2776

1 December 2022

2 December 2022

5 December 2022

13 December 2022

3.29

9.2761

1 November 2022

2 November 2022

3 November 2022

11 November 2022

2.31

9.2175

3 October 2022

4 October 2022

5 October 2022

13 October 2022

2.32

9.2838

1 September 2022

2 September 2022

5 September 2022

13 September 2022

2.33

9.2972

1 August 2022

2 August 2022

3 August 2022

11 August 2022

2.33

9.3429

1 July 2022

4 July 2022

5 July 2022

13 July 2022

2.34

9.3497

1 June 2022

2 June 2022

3 June 2022

14 June 2022

2.35

9.3888

2 May 2022

3 May 2022

4 May 2022

12 May 2022

2.37

9.4433

1 April 2022

4 April 2022

5 April 2022

13 April 2022

2.38

9.5071

1 March 2022

2 March 2022

3 March 2022

11 March 2022

2.41

9.5793

1 February 2022

2 February 2022

3 February 2022

11 February 2022

2.43

9.6835

Disclaimer

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: CXA:PAYS, 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.

Schroder Absolute Return Income Fund – (Managed Fund). CXA: PAYS has received a Morningstar Medalist RatingTM of 'Bronze' on March 2024. ©2024 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.

¹ Schroder Absolute Return Income (Managed Fund) (ARSN 624 529 120) (“Fund”) invests in, and has the same investment strategy, as the Schroder Absolute Return Income Fund (ARSN 092 060 172) (“Underlying Fund”). The Fund which was incepted in November 2019 has a distribution target of 4.75%p.a.

^As at December 2023. Effective yield is based on the unit price at the start of the period. Income is the cash distributions paid by the fund which may include return of capital. Past performance is not a reliable indicator of future performance.

The adjusted indicative NAV (iNAV) provides an intra-day estimated value of the Fund’s investments. Schroders has engaged an agent to calculate and disseminate an iNAV throughout the Business Day.  The iNAV will be recalculated throughout the day to take into account movements in the price of underlying assets either through live market prices or, where there is no live market price, a price is estimated based on a proxy instrument. The use of proxy instruments is subject to the Schroders Group Instrument Pricing Policy and governance framework. Where there is no appropriate proxy instrument available, the last price at which an asset was quoted or traded will be used.  The iNAV is indicative only, and may incorporate securities for which there are no live market prices at the time of calculation and so it may not reflect the actual value of the underlying assets of the Fund.

While Schroders will use best efforts to ensure that the iNAV will be published continuously and will be up-to-date and accurate, Schroders cannot guarantee this will always be the case. The iNAV should not be taken to be or relied upon to determine the price at which the units may trade on Cboe at any point in time.  To the extent permitted by law, neither Schroders nor its appointed agents shall be liable to any person who relies on the iNAV. Investors will be notified via the Cboe Fund Announcements Platform if there is any material change to the methodology for calculating the iNAV. The price at which units trade on Cboe may not reflect either the NAV per unit or the iNAV. The adoption of a robust pricing methodology for the iNAV is intended to minimise this differential, as is the role of market maker but will not be able to eliminate it entirely.

The market price and the iNAV price may also deviate because the market price of the units in the Fund is a function of supply and demand amongst investors wishing to buy and sell such units and the bid-offer spread that the market maker is willing to quote for those units.