Schroder ISF Dynamic Income
An unconstrained multi-asset fund, aiming to deliver an attractive and resilient income stream in a ‘higher-for-longer’ environment of inflation and interest rates.
Income resilience
Designed for a consistent income stream that is resilient to market conditions. Target monthly payout of 7% per annum*.
Forward-looking diversification
Access to a wide range of asset classes, including alternative sources of income**, for a smoother investment journey.
Thematic growth
Exposure to key global growth themes provides investors the opportunity to benefit from both income AND capital growth.
Introducing Schroder ISF Dynamic Income
The fund aims to provide income and capital growth after fees have been deducted by investing in a diversified range of assets and markets worldwide, including emerging markets. The fund is actively managed and the distribution share classes target a monthly pay-out of 7% per annum*.
*For Distribution Classes, the distribution rate is not guaranteed. Distribution yield is not indicative of the Fund's return. In respect of a Distribution Class with fixed dividends, dividends may be paid out of capital if investment income is less than the fixed dividend amount. Where dividends are paid out of capital, this will reduce the net asset value of the Distribution Class. The Directors or their authorised delegate will periodically review fixed Distribution Share Classes and reserve the right to make changes, for example if investment income after expenses is higher than the target fixed distribution the Directors or their authorised delegate may declare the higher amount to be distributed. Equally the Directors or their authorised delegate may deem it is appropriate to declare a dividend lower than the target fixed distribution.
**Alternative sources of income within the portfolio include emerging market debt, securitised credit, insurance linked securities and convertibles.
How does it work?
Learn more about the fund and its potential benefits in our fund brochure
Why Schroders for Multi-Asset?
Our Multi-Asset Investment department is one of the most well-resourced in the industry with over 140 professionals*, dedicated to working closely with our clients to provide portfolios that are structured in line with their long-term performance objectives.
Our Multi-Asset Income team sits within the wider Multi-Asset department and benefits from its extensive capabilities. Headed by Remi Olu-Pitan and Dorian Carrell, the team is supported by portfolio managers and analysts that are dedicated to managing income strategies. Sharing a reporting line with Fixed Income to the Group CIO, the Multi-Asset Income team also draw on the expertise of over 680 asset class specialists across equities, fixed income and alternatives**. The team also work closely with the Sustainable Investment team of 45 dedicated ESG professionals.
*Source: Schroders, as at May 2024.
**Source: Schroders, as at June 2024.
Fund managers
Fund centre
You can find more information on the fund including literature and performance data on our fund centre.
Risk considerations
Market risk: The value of investments can go up and down and an investor may not get back the amount initially invested.
ABS and MBS risk: The fund may invest in mortgage or assetbacked securities. The underlying borrowers of these securities may not be able to pay back the full amount that they owe, which may result in losses to the fund.
Capital risk/distribution policy: As the fund intends to pay dividends regardless of its performance, a dividend may represent a return of part of the amount you invested.
China risk: If the fund invests in the China Interbank Bond Market via the Bond Connect or in China "A" shares via the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect or in shares listed on the STAR Board or the ChiNext, this may involve clearing and settlement, regulatory, operational and counterparty risks. If the fund invests in onshore renminbi-denominated securities, currency control decisions made by the Chinese government could affect the value of the fund's investments and could cause the fund to defer or suspend redemptions of its shares.
Counterparty risk: The fund may have contractual agreements with counterparties. If a counterparty is unable to fulfil their obligations, the sum that they owe to the fund may be lost in part or in whole.
Credit risk: If a borrower of debt provided by the fund or a bond issuer experiences a decline in financial health, their ability to make payments of interest and principal may be affected, which may cause a decline in the value of the fund.
Currency risk: If the fund’s investments are denominated in currencies different to the fund’s base currency, the fund may lose value as a result of movements in foreign exchange rates, otherwise known as currency rates. If the investor holds a share class in a different currency to the base currency of the fund, investors may be exposed to losses as a result of movements in currency rates.
Currency risk/hedged share class: The currency hedging of the share class may not be fully effective and residual currency exposure may remain. The cost associated with hedging may impact performance and potential gains may be more limited than for unhedged share classes.
Derivatives risk: Derivatives, which are financial instruments deriving their value from an underlying asset, may be used for investment purposes and/or to manage the portfolio efficiently. A derivative may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the fund.
Emerging markets and frontier risk: Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty, operational and liquidity risk than developed markets.
High yield bond risk: High yield bonds (normally lower rated or unrated) generally carry greater market, credit and liquidity risk meaning greater uncertainty of returns.
Liquidity risk: In difficult market conditions, the fund may not be able to sell a security for full value or at all. This could affect performance and could cause the fund to defer or suspend redemptions of its shares, meaning investors may not be able to have immediate access to their holdings.
Operational risk: Operational processes, including those related to the safekeeping of assets, may fail. This may result in losses to the fund.
Performance risk: Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macroeconomic environment, investment objectives may become more difficult to achieve.
Sustainability risk: The fund has environmental and/or social characteristics. This means it may have limited exposure to some companies, industries or sectors and may forego certain investment opportunities, or dispose of certain holdings, that do not align with its sustainability criteria chosen by the investment manager. The fund may invest in companies that do not reflect the beliefs and values of any particular investor.
Important information
Marketing material.
This document does not constitute an offer to anyone, or a solicitation by anyone, to subscribe for shares of Schroder International Selection Fund (the “Company”). Nothing in this document should be construed as advice and is therefore not a recommendation to buy or sell shares.
An investment in the Company entails risks, which are fully described in the prospectus. Subscriptions for shares of the Company can only be made on the basis of its latest Key Information Document and prospectus, together with the latest audited annual report (and subsequent unaudited semi-annual report, if published), copies of which can be obtained, free of charge, from Schroder Investment Management (Europe) S.A.
These documents may be obtained in English, free of charge, from the following link: http://www.eifs.lu/schroders.
Schroders may decide to cease the distribution of any fund(s) in any EEA country at any time, but we will publish our intention to do so on our website, in line with applicable regulatory requirements.
The fund has the objective of sustainable investment within the meaning of Article 8 of Regulation (EU) 2019/2088 on Sustainability-related Disclosures in the Financial Services Sector (the “SFDR”). For information on sustainability-related aspects of this fund please go to www.schroders.com.
Any reference to sectors/countries/ stocks/securities are for illustrative purposes only and not a recommendation to buy or sell any financial instrument/ securities or adopt any investment strategy.
Past Performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of investments to fall as well as rise.
Performance data does not take into account any commissions and costs, if any, charged when units or shares of any fund, as applicable, are issued and redeemed. Schroders has expressed its own views and opinions in this document and these may change.
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