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Schroder Sustainable Growth Fund

The Schroder Sustainable Growth Fund is an active, sustainable investment strategy which adopts a traditional multi-asset investment approach using a growth biased asset allocation. The Fund may invest across a broad range of globally diversified asset classes that include growth assets such as equities and listed property, diversifying assets such as high yield credit and alternatives and defensive assets like government bonds. The Fund has a long-term Strategic Asset Allocation but has the flexibility to tactically allocate to different asset classes over the shorter term, based on our forward-looking valuation, cycle and liquidity framework, which helps manage risk.

Objective:

To deliver an investment return before fees of 5% p.a. above Australian inflation1 over the medium to long term, with similar risk to a traditional balanced fund2. In addition, the Fund targets a higher sustainability profile than the Fund strategic asset allocation (SAA) benchmark, as measured by Schroders’ proprietary impact measurement tool – SustainEx3.

Asset classes / Investment ranges:

  • Growth assets, typically shares and property securities, offer potentially the highest return but also the highest volatility. Range: 40% - 80%.
  • Diversifying assets, typically higher yielding debt and alternatives, offer higher potential returns usually with an income generating focus which assist in diversifying the portfolio’s sources of return. Range: 0% - 30%.
  • Defensive assets, typically investment grade debt securities and cash and cash equivalents, are relatively secure with lower volatility. Range: 10% - 60%.

This product is likely to be appropriate for a consumer seeking capital growth and income for all or some components of their portfolio, with a high risk and return profile.

This product is unlikely to be suitable for a consumer seeking capital preservation or with a short investment timeframe.

Risks:

  • Market risk: includes the risk of volatility and negative returns arising from investment markets.
  • Equities risk: includes the risk that changes in share prices will negatively impact on the value of investments.
  • Interest rate/duration risk: The performance of fixed interest and debt securities will be sensitive to movements in domestic and international interest rates (e.g. increases in interest rates result in the capital value of fixed interest investments falling).
  • Credit risk: Credit risk arises when an issuing entity defaults, which results in a loss of capital to the Fund.

For a comprehensive list of risks please refer to the PDS - Wholesale Class or PDS - Professional Class.

 

1.Inflation is defined as the RBA’s Trimmed Mean, as published by the Australian Bureau of Statistics.

2.This refers to a fund comprised of 60% equities and 40% bonds.

3.SustainEx is a Schroders proprietary tool which provides an estimate of the potential social or environmental impact that a company or other issuer may create.

 

Experience and Team

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People

Our local team of six multi-asset experts has over 120 years of collective investment experience, and is backed by 100+ multi-asset investment professionals and 30+ dedicated sustainable investment resources across six locations worldwide.

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Team

Our team-based approach is anchored in a consistent philosophy and investment process, as well as a developing research agenda.

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Sustainability

We apply sustainability criteria to all investments made by the Fund and seek outcomes that positively impact people and planet.

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Performance

The Fund was launched in 1996 and has a strong track record of meeting its investment objectives1.

1. For the period from May 2012 to May 2022 the Fund has returned 8.0% p.a. (before fees), which is 0.5% p.a. above the Fund performance objective of 5% above Australian inflation before fees. Past performance is not a reliable indicator of future performance.

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Active Management

The Fund draws on Schroders active management platform to deliver; flexible, forward-looking asset allocation in changing markets.

Ratings and Accreditation

The Responsible Investment Association Australasia’s (RIAA) Responsible Investment Certification Program is the leading initiative for distinguishing quality responsible, ethical and impact investment products and services in Australia and New Zealand.

The rating issued May 2022, APIR: Wholesale Class: SCH0102AU and May 2022 Professional Class: SCH0010AU, are published byLonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2022 Lonsec. All rights reserved.

 

The Zenith Investment Partners (ABN 27 103 132 672, AFS  Licence  226872)  (“Zenith”)  rating  (assigned APIR: APIR: Wholesale Class: SCH0102AU, September 2021) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase,  sell  or  hold  the  relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.

 

The Schroder Sustainable Growth Fund has been certified by the Responsible Investment Association Australasia according to the strict operational and disclosure practices required under the Responsible Investment Certification Program. See www.responsiblereturns.com.au for details.1

 

The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence.

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