With the primary objective of maximising sustainable yield, the fund intends to make a fixed payout of 5% per annum^. The payout will primarily come from a portfolio of global high income bonds and high dividend yielding equities, selected for the quality and reliability of their income.
In today’s fast changing investment environment, a flexible approach is required to capture investment opportunities which could come and go quickly. Our unconstrained regional and sector allocation allows us to cast our net as widely as possible to identify these income opportunities no matter where and when they arise. The unconstrained investment philosophy is also applied to the selection of stocks and bonds, in which our strong focus on quality ensures income sustainability of the Fund.
Three key principles to capture global opportunities
The fund can invest in alternative assets such as infrastructure, preferred securities, property, mortgage-backed securities (MBS), asset-backed securities (ABS) and municipal bonds. These assets ensure diversification and improve sustainability of the fund’s income, and offer potential growth for investors.
The current asset allocation range in global high income bonds (20 – 90%), global high dividend yielding equities (10 – 50%), alternative assets (0 – 20%) and cash (0 – 20%)1 gives the fund manager flexibility to achieve the fund’s objective of achieving yield and maximising total returns during different phases of the economic cycle. We also implement active downside risk management aiming to protect the fund’s value during volatile markets without sacrificing the income earned from the underlying assets.
Schroder ISF Global Multi-Asset Income
A wide range of asset classes provide flexibility in asset allocation
1 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.
The Fund is managed by Schroders’ three top-class investment teams, namely the multi-asset team, the quantitative equity product (QEP) team and the fixed income team. The multi-asset team is responsible for overall asset allocation and risk management while stock selection is carried out through Schroders’ QEP team for equities and through its fixed income team for bonds, across investment grade, global high yield and emerging market debt. The lead Fund Manager, Aymeric Forest, has 15 years of investment experience, while the multi-asset team has over 60 years of experience in managing asset allocation funds.
The multi-asset team has more than 60 investment professionals around the world. The QEP team consists of 16 investment professionals while the fixed income team has 65. The three teams can also leverage on Schroders’ resources of over 400 portfolio managers and analysts in the world for research and insights.
Schroders has consistently won awards from renowned organizations, including Lipper and Morningstar Fund Awards, for the superior performance in managing the multi-asset, equities and fixed income mandates.
Schroder International Selection Fund is referred to as Schroder ISF.
* 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 EUR 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 units. 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.