With low government bond yields and unattractive deposit rates, 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 5% 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.
Find out more about Schroders’ credit investing capabilities.
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 18 Dec 2019. 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.