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.
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 rolling 3 year periods.
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.
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. Additionally, the Fund aims to provide investors with a lower level of 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.
More about the Fund
In this video, Portfolio Manager Helen Mason explains how the Schroder High Yielding Credit Fund addresses the need for a higher-yielding income option beyond diversified, traditional equity and cash-based products.
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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.
If you need to find out more about the Schroder Australian High Yielding Credit Fund
Meet our fund manager
Helen Mason
Fund Manager
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 learn more about investing with us, or contact our team with questions.
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.
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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.