Schroder ISF Multi-Asset Growth and Income

A total return approach to income investing

With the decade of low interest rates and quantitative easing disappearing into the rear view mirror, investors likely face a new environment of higher rates, higher inflation and lower growth expectations. In this new era, new winners and losers should emerge, and therefore a highly flexible approach will be increasingly important.

The Schroder ISF Multi-Asset Growth and Income has been designed, through global investments across select asset classes, to capture growth and income opportunities, while generating cash flow and mitigating potential risk during turbulent market conditions.

Why invest in the Schroder ISF Multi-Asset Growth and Income?

Strategically focused on high-growth companies

In the face of an ever-changing market environment, as we try to block out short-term investment noise, there are high-growth opportunities to be unearthed in the long run.

The fund endeavors to capture some of the most exciting growth opportunities through investing in carefully selected asset classes worldwide, aiming to provide equity-like returns with lower volatility. It has a strong focus on key structural themes, such as energy evolution and businesses that can thrive in an era of interest rate elevation, that we believe will be critical growth drivers over the next three to five years.

Energy evolution

Clean energy | Sustainable transport | Smart storage and transmission

Crisis survivors

Commodity renaissance | Reopening winners | Interest rate elevation | Pricing power | Rising from the ashes

Connected consumer

E-commerce | Logistics and data centres | Fintech | Platform monopolies

Technological transformation

Digitalisation | Cloud | Automation / robotics | Cybersecurity

Transitioning societies

Healthcare innovation | Urbanisation and smart cities | Wealth migration

Stable income stream to meet different needs

With inflation at multi-decade highs in a number of markets, now more than ever, investors need to carefully consider how to protect their purchasing power. A strong and stable income stream can be generated from a well-diversified portfolio, along with an element of capital growth.

The fund derives its income from multiple sources. The fund offers a dividend pay-out of 10% per annum* (Applicable to A Dis share classes USD MF2. Dividend may be paid out of capital.). Not only does it cater to investors' interests for high pay-out and sustainable cash flow, but it also provides a range of distribution options to meet different needs.

^{*Applicable to A Dis share classes USD MF2. Dividend may be paid out of capital. 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 fund work?

Three pillar approach

The fund is simply structured with three core growth and income engines: global equities, global high yielding bonds and global convertibles. The ability to allocate dynamically between and within these engines provides the flexibility to capture rapidly changing opportunities across the global universe.

Additionally, the high yielding bond component may include opportunistic allocations such as emerging market debt or insurance-linked securities, adding further flexibility to the portfolio.

Geographically diversified

Building a geographically diversified portfolio can minimise the impact of market volatility in turbulent times.

The fund is able to invest without boundaries, capitalising on opportunities in all regions across the capital structure, be it stocks, bonds or convertible bonds, enabling highly selective exposure.

Seizing mispriced opportunities

When the crowd is moving towards irrational exuberance, it is often the best time to turn crisis into opportunity through uncovering underperforming companies with underlying value.

Valuations are key to achieving the fund’s aim of maximising total return, with the team looking to identify asset classes or individual companies trading at a perceived discount to the growth or real (inflation adjusted) income they offer.