Schroder ISF* EURO Credit Conviction
The flexible way through the current interest rate environment.Schroder ISF EURO Credit Conviction invests primarily in euro-denominated bonds from companies around the world. The focus is on "investment grade" securities from European issuers with good or very good debtor quality. This fund is suitable as a central core investment for long-term asset accumulation.
Actively exploiting opportunities and limiting risks in a targeted manner: The fund pursues a flexible approach in order to achieve risk-adjusted outperformance compared to the benchmark over the entire economic cycle. For example, the management can add high-yield bonds in order to increase returns. There is also the option of investing in foreign currency bonds to a limited extent, whereby the currency risks are hedged. The fund's active approach enables the management to hold parts of the fund assets in cash or top-quality government bonds in difficult times with strongly fluctuating prices.
* Schroder ISF stands for Schroder International Selection Fund.
Why invest?
Fixed dividend
The fund offers a fixed semi-annual dividend of 3.5% p.a. in the distributing unit classes*.
Performance
Through active management, the team aims to achieve an above-average, risk-adjusted return over the long term.
Topic-based approach
As part of its thematic approach, the team identifies stocks with long-term growth potential. In doing so, they take particular account of forward-looking scenarios such as macroeconomic trends, consumer behavior and demographics.
100 % in Euro
Currency risks are 100% hedged in the euro unit classes.
Meet the Fund Manager
Global Head of Credit
The fixed distributions are targeted but not guaranteed. If the unit class does not generate the targeted amount for the regular distribution or does not generate it in full, the difference will be distributed from the assets of the unit class.
Find out more about Schroder ISF EURO Credit Conviction
For more information including literature and performance data, visit our fund centre.
Your contacts
Find the right contact for your topic or enquiry relating to our company.
Risk considerations
Counterparty risk: The fund may enter into contractual agreements with counterparties. If a counterparty is unable to meet its obligations, all or part of the amount owed to the fund may be lost.
Derivatives risk: Derivatives may be used for the efficient management of the portfolio. The fund may also invest substantially in derivatives and use short selling and leverage techniques to achieve a return. A derivative may perform differently than expected, cause losses that exceed the cost of the derivative and result in losses for the fund.
Credit risk: A deterioration in the financial condition of an issuer may cause its bonds to lose value or become worthless.
Currency risk: The fund may suffer losses in value as a result of changes in exchange rates.
Operational risk: Operational processes, including those relating to the safekeeping of assets, may fail. This may result in losses for the fund.
Market risk: The value of investments can fall as well as rise, and investors may not get back the capital they originally invested.
Performance risk: Investment objectives indicate an intended outcome. However, there is no guarantee that this result will be achieved. Depending on market conditions and the macroeconomic environment, it may become more difficult to achieve the investment objectives.
IBOR: The transition of the financial markets away from the use of Interbank Offered Rates ("IBOR") and towards alternative reference rates may affect the valuation of certain investments and disrupt the liquidity of certain instruments. This may affect the investment performance of the fund.
Liquidity risk: In difficult market conditions, the fund may not be able to sell a security at its full value or at all. This could affect performance and cause the Fund to postpone or suspend redemptions of units.
Currency Risk / Hedged Share Class: The hedging of the share class may not be fully effective and there may still be residual currency risk. The costs associated with hedging may affect performance. Therefore, potential gains may be more limited than those of unhedged share classes.
High yield bond risk: High yield bonds (typically lower-rated or unrated) generally involve greater market, credit and liquidity risks.
Emerging and frontier market risk: Emerging markets, and in particular frontier markets, are generally exposed to greater political, legal, counterparty, operational and liquidity risks than developed markets.
Sustainability risks: The fund has environmental and/or social characteristics. This means that it may have limited exposure to some companies, industries or sectors and may not take advantage of certain investment opportunities or sell certain positions if they do not meet the sustainability criteria selected by the Investment Manager. The Fund may invest in companies that do not reflect the beliefs and values of a particular investor.
Capital risk / distribution policy: As the Fund intends to pay dividends regardless of its performance, a dividend may be equivalent to a repayment of part of the amount you have invested.