Schroder Australian High Yielding Credit Fund
Combine attractive yield with the capital protection of institutional grade fixed income. (Wholesale Class APIR SCH0778AU).
Competitive and consistent income
Addresses the need for a higher-yielding income solution beyond diversified, traditional equity and cash based products.
Diversification
A portfolio built across credit sectors, rating, maturity, capital structure and security selection.
Professionally managed
Access a part of the credit market traditionally reserved for wholesale and institutional investors.
Through exposure to the typically defensive wholesale high yielding credit universe, the Schroder Australian High Yielding Credit Fund (‘the Fund’) answers the call of retail investors who are looking for higher yielding income solutions beyond diversified, traditional equity and cash based products, while seeking to avoid the liquidity and transparency challenges associated with private markets. It also serves as a diversified substitute for Additional Tier 1 (AT1) bank hybrids, which will be phased out by 2032.
Based on an actively-managed single credit strategy fund that has been running for over 20 years, and investing across the Australian credit universe, the Fund aims to deliver competitive incomes from Australian corporates and AUD-denominated issues from global corporates. The Fund seeks to deliver returns of 2.5% to 3.0% p.a. above the RBA Cash Rate, before fees, over the medium term.
About the Schroder Australian High Yielding Credit Fund
The Schroder Australian High Yielding Credit Fund (the Fund) answers the call of retail investors who are looking to diversify their equity or term deposit allocations with exposure to the wholesale high yielding credit universe.
The Fund is an actively-managed credit strategy aiming to deliver competitive incomes from Australian corporates and AUD-denominated issues from global corporates. The Fund seeks to deliver returns of 2.5 to 3.0% p.a. above the cash rate, before fees, over the medium term.
A diversified approach to credit investing
The Fund invests in corporate and financial credit across sectors, issuers, maturity, ratings grade and capital structure dimensions, which includes subordinated debt. The targeted result is a diversified portfolio of credit securities with the potential to deliver consistent returns above cash and term deposits but with less risk and volatility than equities.
More about the Fund
In this video, Portfolio Manager Helen Mason explains how the Schroder Australian High Yielding Credit Fund addresses the need for a higher-yielding income option beyond diversified, traditional equity and cash-based products.
What makes Australian credit a ‘sweet spot’?
Quality
Index sector composition, fundamentals (earnings, balance sheet position), low default history and cash flow volatility/transparency.
Structural Factors
Liquidity, accessibility, minimum investment size and regulatory changes.
Value & Cycle
Reward for risk through the cycle, technical factors including the supply pulse and cross currency opportunities.
Why Schroders?
Our investment process has been designed and refined over many years to systematically filter and distil large volumes of information to help identify the best investment opportunities for our clients. This involves combining our credit, macro, sector and security level research to create diversified portfolios that aim to deliver on our return and risk objectives.
We are active across the process and combine detailed research with a robust framework for portfolio construction that aims to exploit areas with the most potential for adding value, across sectors, issuers, maturity, ratings grade, and capital structure dimensions. This ensures both high, consistent income generation and risk management. The local team, meanwhile, is experienced, well-resourced, and supported by our global network of credit analysts.
Finally, the portfolio is constructed with regard not only to selecting sectors and securities with the most compelling valuation support but also considering overall portfolio diversification requirements and risk appetite of the specific portfolio given the point in the cycle.
Related documents
Thought pieces
Quarterly update - September 2025
Helen Mason gives us her quarterly update on the Schroder Australian High Yielding Credit Fund, running us through her thoughts on the last three months, fund performance, her outlook on the credit market for the coming months, and how the fund is being positioned as a result.
Fund ratings
If you need to find out more about the Schroder Australian High Yielding Credit Fund
Meet our fund manager
The role of the Schroder Australian High Yielding Credit Fund in your portfolio
The Schroder Australian High Yielding Credit Fund offers investors the opportunity to generate competitive monthly income, preserve capital, diversify their portfolios, and potentially achieve consistent returns with lower risk and volatility compared to equities. Duration and currency exposures are also hedged, which can help to mitigate potential risks.
This product focuses on a single asset class therefore should only be considered for up to 50% of a portfolio allocation where the consumer has a medium to high risk and return profile. This product has a bias towards defensive assets and therefore it is unlikely to be suitable for a consumer seeking high levels of capital growth or for those consumers that have a high return objective, or those consumers with a short investment horizon.
Ways to invest in the Schroder Australian High Yielding Credit Fund
Before investing in the Schroder Australian High Yielding Credit 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. 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.
Disclaimer
The rating published on 09/2025 for (SCH0778AU) is issued by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec Research). Ratings are general advice only and have been prepared without taking account of investors’ 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 Research assumes no obligation to update. Lonsec Research uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2025 Lonsec. All rights reserved.
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned APIR: Wholesale Class: SCH0778AU, June 2025) 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.
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.