Schroders sees global demand for income
Schroders sees global demand for income
Schroders announces that assets under management in Schroder ISF1 Global Multi-Asset Income have reached $623 million, 2 just nine months since launch, 3 with flows coming from Asia, Europe, the Middle East, and South Africa. This highlights the global investor appetite for a sustainable, diversified income solution in an environment of weak economic growth and low interest rates.
The fund, which aims to provide sustainable income by investing in attractive income opportunities across a range of asset classes, regions and sectors, is managed by Aymeric Forest and Iain Cunningham. The objective is to pay a distribution of five per cent per annum in monthly (USD share class) or quarterly (EUR share class) instalments with an expected seven per cent total return per annum over a full market cycle.
Peter Beckett, Head of International Marketing at Schroders, said:
“Demand for a reliable and well-diversified income stream has never been stronger. The search for income is a natural defensive mechanism. This is not just a European but a global phenomenon. In a low yielding environment investors are increasingly struggling to narrow their retirement gap without taking on significant risk. In looking for income, their choices have been mainly limited to either bond or high dividend equity funds. Schroder ISF Global Multi-Asset Income is designed to overcome the artificial barriers posed by asset class specific income opportunities. We offer a less constrained global search for quality income opportunities while also giving investors the diversification benefits of a multi-asset portfolio.”
Aymeric Forest, Fund Manager of Schroder ISF Global Multi-Asset Income at Schroders, said:
“Having an unconstrained approach helps to avoid chasing income at any price. Currently, we prefer the utilities, pharmaceuticals and telecommunications sectors in Japan and emerging markets. Within fixed income, we have diversified our investment away from government debt and into Latin America and European corporate bonds because of low expected default rates and improving consumer credit growth. Our flexible approach enables us to focus on the sustainability of the income.”
As well as a dedicated Multi-Asset Investment team based in London, Schroders has Multi-Asset professionals located in key financial centres across the globe. In total, the team now consists of over 90 professionals worldwide who manage in excess of £40 billion (as at 30 September 2012) in MultiAsset Investments and Portfolio Solutions mandates.
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Notes to Editors
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Schroders is a global asset management company with £202.8 billion (€254.5 billion, $327.4 billion) under management as at 30 September 2012. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate from 33 offices in 26 countries across Europe, the Americas, Asia and the Middle East. Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.
Further information about Schroders can be found at www.schroders.com.
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