Schroder ISF* EURO Corporate Bond

Our investment objective: Above-average performance in all market conditions.

Schroder ISF EURO Corporate Bond 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% 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

Patrick Vogel

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 Schroders ISF EURO Corporate Bond

For more information including literature and performance data, visit our fund centre.

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Risk considerations

Currency risk: The fund may suffer losses in value as a result of changes in exchange rates.

Derivatives risk: Derivatives may be used to manage the portfolio efficiently. The fund may also invest significantly in derivatives and use short selling and leverage techniques to achieve a return. A derivative may not perform as expected, which may result in losses greater than the cost of the derivative. This may result in losses for the fund.

Interest rate risk: The fund may suffer losses in value as a direct result of changes in interest rates.

IBOR: The shift in 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.

Performance risk: The investment objectives indicate the intended target. However, there can be no guarantee that this objective will be achieved. Depending on market conditions and the macroeconomic environment, it may become more difficult to achieve the investment objectives.

High yield bond risk: High yield bonds (usually with lower or no credit rating) are generally associated with greater market, credit and liquidity risks.

ABS and MBS risks: The Fund may invest in mortgage- and asset-backed securities. It is possible that the borrowers underlying these securities may not be able to repay the full amount owed by them, which may result in losses for the Fund.

CoCo bonds: The fund may invest in CoCo bonds. A reduction in the financial strength of the issuer of such bonds may result in losses for the fund.

Credit risk: If the financial condition of an issuer deteriorates, its bonds may lose value or become worthless.

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 have an impact on performance and cause the fund to postpone or suspend redemptions of units.

Operational risk: Operational processes, including those relating to the safekeeping of assets, may fail. This may result in losses for the fund.

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 may 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.