Securitised Index IG
Investment Objective
The Strategy seeks to outperform the Bloomberg Barclays US Securitised Index by 80-120 basis points (gross of fees) or US 3-Month LIBOR + 100 – 175 basis points (gross of fees) over a market cycle.
There is no guarantee that any investment objective can be achieved.
Description
Schroder Enhanced Securitised Strategy uses a research-driven approach seeking to generate return by investing in mortgage-backed and asset-backed securities, with a focus on sectors where the team believes it possesses a competitive advantage. The strategy seeks to capitalize on cyclical opportunities among the wide range of sectors and assets. The team seeks to identify sectors and securities that offer the most attractive return profile relative to their annualized volatility, liquidity and key risk factors. We believe that our process for identifying undervalued sectors, and cash flows with performance upside, is the ideal process to capture value. The strategy can be managed to a broad securitised index (such as the Bloomberg Barclays US Securitised Index) or without duration, generally hedged to a cash (LIBOR) benchmark.
Investment Options*
- Separate Accounts
Learn More
To find out more about this strategy, email our team at canada@schroders.com.
Investment Disclosures
*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.
Please see "Principal Risks of Investing in the Fund" in the Fund's full Prospectus for a more detailed description of the Fund's risks. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.