In the current volatile and inflationary environment, generating reliable and attractive income from traditional sources has become a challenge.
The fund's primary target is to deliver sustainable income by investing primarily across the broad and diverse global credit universe, with an annualised payout of 4.75% p.a.1,2 (as at the last record date, paid monthly).
Credit allocation is dynamically managed and unconstrained by a benchmark.
Investors seeking income can be more sensitive to capital loss and market drawdowns. Our proprietary process incorporates drawdown risk analysis to help us mitigate loss to investors’ capital relative to the market.
An in-built risk tool can identify which phase of the economic cycle each market is moving towards. This facilitates optimal credit selection to effectively manage drawdown risk.
We apply forward-looking themes, like technology disruption and changing demographics, in our credit selection process.
This helps us understand how the world is changing, and identify companies that are adapting well to change and those that might be vulnerable.
The fund draws on Schroders’ global credit platform, in-depth credit research expertise and bespoke quantitative techniques in a highly diversified strategy. A fund designed for the market environment of tomorrow that benefits investors with consistent income and capital stability.
Find out more about Schroders’ credit investing capabilities.
Julien Houdain is Head of Credit, Europe at Schroders, managing the credit strategy for Europe. He joined Schroders since the beginning of 2020 and is based in London. He has a great deal of experience managing complex global credit strategies, having previously been Head of Global Bond Strategies at Legal & General Investment Management.
Note: Schroder International Selection Fund is referred to as Schroder ISF throughout.
All visuals shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.
1 The annualised payout rate shown is as at the last record date of 30 Mar 2022. For more information on the composition of distribution payments, please refer to www.schroders.com.sg/distributioninformation.
2 Distributions of the Schroder ISF Global Credit Income (the “Fund”) for share class USD A Dis MF will be declared on a monthly basis. The distributions are not guaranteed and will be reviewed periodically. In the event of income and realised gains being less than the intended distribution, distributions will be made from capital. Investors should be aware that the distributions may exceed the income and realised gains of each fund at times and lead to a reduction of the amount originally invested depending on the date of initial investment.
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”).