Schroder Absolute Return Income Fund
The Schroder Absolute Return Income Fund* is an absolute return focused strategy that has the flexibility to invest across the broad fixed income universe. It seeks to deliver regular income via a diversified set of return sources, targets low levels of capital volatility with a focus on minimising drawdowns, and maintains a low sensitivity to interest rates.
*(formerly known as Schroder Credit Securities Fund)
This product is likely to be appropriate for a consumer seeking capital preservation and income for a small or core component of their portfolio, with a medium to high risk and return profile. This product is unlikely to be suitable for a consumer seeking capital growth or someone seeking high returns.
To outperform the RBA Cash Rate by 2.5% p.a. before fees over the medium term.
- Market risk: includes the risk of volatility and negative returns arising from investment markets.
- 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.
- Company risk: includes the risk of adverse changes to a company or its business environment.
For a comprehensive list of risks please refer to the PDS.
|Fund inception date||24 June 2002|
|Valuation||Every business day|
|Minimum investment||Wholesale class - $20,000
Professional class - $500,000
|Buy/sell spread^||0.20% on application; 0.20% on redemption|
|Management fees and costs*||Wholesale class - 0.54% p.a.
Professional class - 0.38% p.a.
Wholesale & Professional classes: Monthly
Institutional class: Accumulation only
|APIR code||Wholesale class - SCH0103AU
Professional class - SCH0024AU
^Subject to change. Refer to the Buy/Sell spreads page in the Fund Centre
*Additional fees and costs may apply. Please refer to the product disclosure statement for further details.
How the Fund is managed
Adopting an absolute return approach, the most critical element of the investment process is to identify which assets to own and when to own them. This is determined through our valuation driven return/risk framework, underpinned by a focus on downside risk.
Unconstrained by design, the Fund can diversify its exposures across geography, issuer type, maturity, ratings grade and capital structure dimensions, with allocations to these dimensions supplemented by duration management and alpha strategies. Risk management is crucial to control the Fund’s exposure to the aggregation of portfolio risks, in particular to limit correlation to equity markets and to minimise volatility and drawdowns.
This approach is complemented by extensive fundamental research by local and global analysts, as well as insights from Schroders’ extensive fixed income capability. The targeted result is a well-diversified portfolio of bonds and other debt securities with the potential to deliver consistent returns above cash and term deposits, with high liquidity but with much lower risk than the equity market.
- Fund Performance Report (Professional Class)
- Fund Performance Report (Wholesale Class)
- Latest Fund Commentary (Professional Class)
- Latest Fund Commentary (Wholesale Class)
- Product Disclosure Statement (Wholesale Class)
- Product Disclosure Statement (Professional Class)
- Target Market Determination (Wholesale Class)
- Target Market Determination (Professional Class)
- Fund Summary
- Annual Report