Schroder ISF Multi-Asset Growth and Income

A total return approach to income investing

Time to broaden out, with a global total return approach
US market concentration, sticky inflation, and a growing international opportunity set all point to the need for a broader and a more global investment approach.

With the cocktail of interest rate cuts, fiscal stimulus and deregulation, it is not surprising that investors are increasingly considering diversifying away from concentrated and expensive markets.

With this in mind, we believe that broadening out with a global total return approach, that intelligently blends income with capital growth makes a lot of sense. Schroder ISF Multi-Asset Growth and Income is designed to capture income and growth opportunities from a mix of assets worldwide. It is an all-weather solution to help potentially grow and preserve your capital.

Introducing Schroder ISF Multi-Asset Growth and Income

Navigate markets with our GIG approach

Our approach is active, and its edge lies in a fundamentally driven global approach to uncovering diversified opportunities for growth and income. Ultimately, the strategy offers the following potential benefits for Investors:

Global access

Offers a broader complement to more US focused multi-asset strategies, actively scouring for opportunities worldwide. A broader remit with more investment choice.

Income consistency

A wide and flexible securities' universe targets consistent and reliable income generation across changing market environments. 10% p.a.* fixed payout (Applicable to A Dis share class - USD MF2. Dividend may be paid out of capital.^)

Growth orientated

A unique blend of value and growth equities with convertible offering a downside cushion. Aims to provide equity-like returns with lower volatility for investors.

* The manager will make distributions in respect of distribution classes. The manager has the sole and absolute discretion to vary the rate and/or frequency of distributions, subject to one month's prior notice to the relevant shareholders. Distribution yield is not indicative of the return of the fund. Distributions may be paid from capital of the fund. Investors should note that where the payment of distributions are paid out of capital, this represents and amounts to a return or withdrawal of part of the amount you originally invested or capital gains attributable to that and may result in an immediate decrease in the value of shares. For details of the distribution policy and frequency of all share classes, please refer to the distribution policy and frequency table.

^ For distribution share classes/units, the distribution rate is not guaranteed. Distribution yield is not indicative of the return of the fund. Distributions maybe paid out of the capital of the fund at the Manager’s discretion. This amounts to a return or withdrawal of part of the amount you originally invested or capital gains attributable to that and may result in an immediate decrease in the net asset value per share or decrease in the value of units of the relevant Distribution Units.

How does the strategy work?

An enhanced three-in-one approach

The fund is simply structured with three core growth and income pillars: Consistent Income (global fixed income), Convertible Anchor (convertible bonds) and Blended Growth (global equities). The ability to tilt within these pillars provides the scope to capture genuinely global opportunities while navigating the shifting cross currents of investment markets.

Pillar 1. Consistent Income (Global fixed income)

With inflation likely to prove more enduring than the past decade, there is a need to harness a highly flexible and broad approach to income generating assets. This pillar comprises a selection of global bonds, balancing a blend of higher yielding and higher quality assets with the aim of generating consistent income and provide stability.

The benefits of looking deeper, across and within fixed income markets, provide access to a broader range of opportunities, compared to those which are more geographically restricted or constrained, to a single asset class.

Pillar 2. Convertible Anchor (Convertible bonds)

Playing offence and defence

This pillar focuses on global convertible securities, where investors can enjoy the advantages of both bonds and stocks. These offer potential participation in equity price appreciation whilst offering an element of downside protection. The asymmetric return profile of convertible bonds offers flexibility within a portfolio context.

Pillar 3. Blended Growth (Global Equities)

Strategically focused on high-growth companies.

Takes full advantage of Schroders' large global and regional equity platform to access some of the most exciting growth opportunities. The result is diversified and dynamic equity exposure, capturing both dividend income and the upside growth potential of companies.

We have a strong focus on key structural themes, blending both short-term cyclical views, with longer-term structural drivers that we believe will be critical growth drivers over the next three to five years.