Schroder Core Bond Fund
Schroder Core Bond Fund seeks long-term total return consistent with the preservation of capital.
The fund uses a value-driven approach and seeks to generate return by investing in a portfolio of investment grade, fixed income securities. The fund seeks to add value by capitalizing on imbalances in the relationships among sectors and individual bonds. We believe that investing in undervalued sectors and bonds and selling expensive ones using a relative value assessment is the ideal process to capture value.
The fund typically invests in US dollar-denominated fixed income securities including governments, corporate bonds, securitized bonds, sovereign and supranational entities, as well as municipal bonds. The fund is duration neutral to the benchmark, meaning that portfolio duration is set in an attempt to meet client objectives and does not incorporate interest rate forecasts or speculation. There is no exposure to currency risk, high yield bonds or emerging market debt.
|Fund Share Class||Month
|Annualized Return as of --|
Performance data quoted represents past performance, which is no guarantee of future results. Investment return, yield and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance data does not reflect a 2.00% redemption fee on shares redeemed two month or less from their original date of purchase. If this fee were reflected, one month performance would be lower than that shown. Current performance may be lower or higher than the performance data quoted. Performance for less than one year is not annualized.
|R6 Shares||Investor Shares|
|Benchmark||Bloomberg Barclays U.S. Aggregate Bond Index||Bloomberg Barclays U.S. Aggregate Bond Index|
|Fund Assets *||N/A|
|Min. Subsequent Inv.||None||$1,000|
* As of
Fees (As of April 17, 2020)
|R6 Shares||Investor Shares|
|Distribution (12b-1) Fees||None||None|
|Total Annual Fund Operating Expenses||0.78%||0.93%|
|Less: Expense Reimbursement2||(0.46)%||(0.53)%|
|Net Annual Fund Operating Expenses||0.32%||0.40%|
(1) Other Expenses are based on estimated amounts for the current fiscal year.
(2) In order to limit the Fund’s expenses, the Fund’s adviser, Schroder Investment Management North America Inc. (“Schroders” or the “Adviser”), has contractually agreed through February 28, 2022 to waive its fees, pay Fund operating expenses, and/or reimburse the Fund to the extent that Total Annual Fund Operating Expenses (other than acquired fund fees and expenses, other indirect acquired fund expenses, interest, taxes, and extraordinary expenses), for the Fund’s Investor Shares, exceed 0.40% of Investor Shares average daily net assets. For the Fund’s R6 Shares, exceed 0.32% of R6 Shares’ average daily net assets. The expense limitation may only be terminated during its term by the Board of Trustees.
The US Multi-Sector Fixed Income team is made up of several New York based portfolio managers dedicated to value-oriented fixed income, who are supported by an experienced team of more than 30 global credit analysts, with geographical and industry expertise.
Our investment philosophy for the fund is based on the premise that pricing inefficiencies exist in the market and our ability to identify those offers the potential to pursue superior investment performance. The portfolio managers focus on identifying investment grade bonds or sectors whose valuations have become dislocated from the underlying fundamentals, primarily due to technical reasons. We believe that purchasing undervalued bonds and selling them once they are fully-priced rewards investors. Our sector and security weightings are made independent from the benchmark and our positioning reflects our value approach, as well as the attractiveness of the opportunities relative to the broad market.
The US Multi-Sector investment team is responsible for the implementation of the Schroder Value philosophy. Portfolio managers collaborate with the sector specialist teams as well as the credit analysts, both of whom follow a disciplined, rigorous framework that combines fundamental research with relative value assessment. Our fixed income process consists of four distinct steps:
- Investment themes: Conduct in-depth proprietary market research (fundamental, quantitative and technical) to develop investment themes that we expect will dominate markets over the long term
- Portfolio strategy: Based on investment themes, develop and prioritize investment strategies which will determine optimal portfolio positioning across sectors. This is done in close collaboration with the sector specialist teams
- Portfolio construction: Implement strategies using a relative value framework with a focus on overall risk level and execute sector and security decisions using the input of the credit analysts and the traders
- Risk management: Ensure that mandates are managed in a manner consistent with their performance objective and corresponding risk profiles. Our three pillar approach provides a framework to continually review and monitor portfolios
The below graphic is an illustration of our investment process:
|Fund Share Class||Total Assets |
|NAV||NAV $ |
|NAV % |