Schroder Fixed Income Fund
Targeting high-quality income generation for investors with a low-medium risk profile, while providing diversification benefits and high liquidity. (Wholesale Class APIR SCH0028AU).
High quality income and diversification
The portfolio’s core of liquid Australian investment grade assets generates high quality income and provides diversification during cyclical downturns.
Active management and use of breadth
We actively manage asset allocation and security selection across a broad opportunity set, leveraging the best of Schroders’ global capability.
Robust over the long term
Our long successful track record is supported by a robust and adaptive investment process and risk framework.
About the Schroder Fixed Income Fund
The Fund is designed to be a cornerstone portfolio allocation that seeks to deliver high-quality income and provide diversification benefits alongside riskier portfolio allocations. It harnesses the broad range of fixed income investment opportunities to access return and manage risk, using a robust investment framework and Schroders’ global capability. The objective of the Fund is to outperform the Bloomberg AusBond Composite 0+Yr Index after fees over the medium term*, with lower volatility.
The bulk of returns are expected to come from income generated by Australian investment grade assets, complemented by investments in a broad range of global and Australian fixed income securities. Investments within the portfolio are actively managed as we seek to ensure we are in the right assets at the right time to maximise returns while maintaining a low risk profile. Asset allocation is complemented by extensive research and expertise in individual security selection, with sustainability considerations integrated throughout the process. The targeted result is a high quality income generating strategy which provides diversification benefits alongside riskier assets.
*Benchmark previously known as UBS Composite Bond Index.
Local insight and experience, backed by global resources
With more than 20 years average experience in fixed income, our local fixed income team has broad knowledge and draws on our global fixed income team’s expertise, and a shared research platform with the Australian multi-asset and private debt teams, 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 high quality income and manage risk.
The role of the Schroder Fixed Income Fund in your portfolio
The Fund is designed to be a cornerstone portfolio allocation that seeks to deliver high-quality income and provide diversification benefits alongside riskier portfolio allocations.. It may increase your investment portfolio’s resilience during economic downturns, when equity investments typically face higher volatility and negative returns. The Fund is actively managed and highly liquid and aims to deliver high quality income and manage risk.
This product is likely to be appropriate for a consumer seeking income and capital preservation. This product focuses on a single asset class and includes a diversified portfolio of fixed income assets and therefore should only be considered for up to 50% of a portfolio allocation where the consumer has a medium 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.
If you need to find out more about the Schroder Fixed Income Fund
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Fund Ratings
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 asset 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
Meet our fund managers
Ways to invest in the Schroder Fixed Income Fund
Before investing in the Schroder Fixed 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 learn more about investing directly via our paper application form, or online application form. If you need help, you can contact our team.
Invest directly
Complete the paper application form or online application form. The minimum investment amount is $20,000 for wholesale class.
Contact our team
For further information about investing in the fund, please speak to a member of the Schroders team.
Disclaimer
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned, Wholesale Class SCH0028AU, June 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 August 2024, APIR: SCH0028AU, 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 lonsec.com.au for ratings information and to access the full report. © 2024 Lonsec. All rights reserved.
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.