Schroder ISF Global Target Return
Focus on a target return for a comfortable life on the horizonThe fund is designed to help investors grow their wealth while mitigating volatility, and aims to be a flexible investment solution that targets stable returns over time, ideal for supporting long-term investment goals.
Why invest in the Schroder ISF Global Target Return?
A target return outcome without sacrificing liquidity
Having clear return expectation is always helpful when planning for long-term investments. The fund offers this clarity by stating that it aims to achieve a potential target return of ICE BofA 3 Month US Treasury Bill index plus 5% per annum before fees have been deducted over rolling three-year periods^.
We know that liquidity is important too, particularly for catering to investors’ unforeseen circumstances that may require immediate cash such as urgent medical needs. This is why the fund does not have a fixed maturity, so investors are able to benefit from a truly flexible investment product.
^ The investment objective has been changed from “the fund aims to provide capital growth and income of USD 3 month LIBOR +5% per annum (gross of fees) over rolling three year periods by investing in a broad range of asset classes worldwide. There is no guarantee that the objective will be attained and your capital is at risk.” to “The Fund aims to provide capital growth and income of ICE BofA 3 Month US Treasury Bill index plus 5% per annum before fees have been deducted over rolling three year periods by investing in a broad range of asset classes worldwide. There is no guarantee that the objective will be attained and your capital is at risk.” on 30/07/2021.
In order to offer both benefits to investors, the fund is actively managed across various asset types. The investment team sources for opportunities from more than 40 markets, across around 15,000 stocks, 18,000 bonds and other investments like alternatives and currencies. By using a flexible asset allocation approach, the fund has the ability to change its exposures as markets change, and can target return and income not reliant on the behaviour of a single asset class.
Robust risk management to bring peace-of-mind
One of the key aims of the fund is to reduce volatility and manage downside risk. To do this, Schroders’ experienced investment team actively assesses and manages portfolio risk by closely monitoring market valuation, the potential for future returns and the likelihood of loss in various asset types. The team also constantly manages the equity, interest rate, credit and currency risks as well as potential impact of various scenarios or event risks. As a result, asset allocation and portfolio positioning are adjusted flexibly throughout the market cycle.
Source: Schroders ~The exact asset allocation may deviate from the range mentioned above without prior notice to investors, please refer to the relevant offering document for details.
Regular monthly payout*
Many investors place equal importance on growing wealth and building a sustainable income stream, particularly when planning for long-term needs, for example, retirement and funding for children education. The fund offers a distribution share class with payout of 5% p.a. ( Applicable to A Dis USD, HKD and EUR Hedged share classes only. Dividend may be paid out of capital#)*.
Recognition for investment expertise
BENCHMARK Fund of the Year Awards 2021 Hong Kong
Best-in-Class, Top Fund awards - Retail Class - USD Flexible Allocation¹
Schroder ISF Global Target Return A Acc USD
Schroder International Selection Fund is referred to as Schroder ISF.
The fund has environmental and/or social characteristics within the meaning of Article 8 of Regulation (EU) 2019/2088 on Sustainability-related Disclosures in the Financial Services Sector (the “SFDR”).
# For share classes with a general dividend policy, expenses will be paid out of capital rather than out of gross income. The amount of distributable income therefore increases and the amount so increased may be considered to be dividend paid out of capital. Share classes with a fixed dividend policy may pay out both income and capital in distributions. Where distributions are paid out of capital, this amounts to a return or withdrawal of part of your original investment or capital gains attributable to that and may result in an immediate decrease in the net asset value of shares.
* In respect of AUD Hedged and RMB Hedged distribution units, there is neither a guarantee that such distributions will be made nor will there be a target level of distribution payout. 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 unitholders. 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 units. For details of the distribution policy and frequency of all share classes, please refer to the Distribution calendar and policy.
¹ The result of Benchmark Fund of The Year Awards 2021 is based on the performance of A Acc share class. Benchmark Fund of The Year Awards 2021 Hong Kong (performance between 1 October 2020 and 30 September 2021).