Global High Yield

The Global High Yield strategy aims for a gross outperformance of 150 basis points per annum versus the Bloomberg Barclays Global High Yield ex CMBS ex EMG 2% Cap Index over a full investment cycle.

The strategy seeks to generate total return by investing across the full maturity spectrum of below investment grade corporate bonds denominated in various currencies. The strategy may also invest up to 30% in investment grade corporate bonds and government securities. The strategy typically does not invest in equities, leveraged loans, or emerging market sovereigns.

In the Global High Yield strategy, we manage six key factors when trying to generate return.

Three factors: issue selection (including investment decisions on seniority/ subordination, covenant protection, maturity, and bond versus CDS exposures), sector weighting, and quality tilt typically contribute the majority of any excess returns relative to the benchmark.

Positions in three other areas are also actively managed: geographic exposure, duration and curve positioning, and liquidity. These factors together contribute the balance of any excess returns versus the benchmark.

• Separate Accounts

To find out more about this strategy, email our team at canada@schroders.com.

*The strategies listed include those which may be subject to the ability to meet investment minimums and other specific criteria, and may not be directly available to U.S. investors.

There can be no guarantee these strategies will be successful or that the investment objective can be achieved.

Investment risks: All investments involve risks including the risk of possible loss of principal. The market value of the portfolio may decline as a result of a number of factors, including interest rate risk, credit risk, inflation/deflation risk, mortgage and asset-backed securities risk, U.S. Government securities risk, foreign investment risk, currency risk, derivatives risk, leverage risk and liquidity risk. Frequent trading of the portfolio may result in relatively high transaction costs and may result in taxable capital gains.