Schroder Real Return Fund (GROW)

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About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100016-2023-10-04-02:44.pdf
FUND MANAGER Schroders Investment Management Australia Ltd
INVESTMENT STYLE The Fund utilises a multi-asset objective based strategy.

To achieve a return of CPI plus 4% to 5% p.a. before fees over 
rolling 3 year periods while minimising the incidence and size of 
negative returns in doing so.

BENCHMARK CPI + 5% over rolling 3 year period
FUND SIZE CPI + 5% over rolling 3 year period
FEES 0.75% p.a.



Benefits of investing in the Schroder Real Return (GROW) Fund

Investing in the Fund offers a range of benefits including:

  • The benefits of diversification: By investing across a broad range of asset classes the Fund can take advantage of opportunities wherever they arise.
  • Active asset allocation: The Fund's asset allocation approach is active and relatively unconstrained - this means it has sufficient flexibility to adapt to changing markets.
  • Protection from the market: Our approach is aimed at protecting investors from bearing the full brunt of falls in markets.
  • Focus on real returns: Developed in Australia for Australian clients, the Fund aims to deliver a 5% return above Australian inflation (before fees), over rolling 3 year periods, without taking undue risk, so that the journey to achieving this objective is a relatively stable one.
  • Expertise: Investors will benefit from the experience and expertise of Schroders' dedicated multi-asset investment team, who have a strong track record in Real Return Investing. We manage the Fund locally, drawing on the insights and experience of our dedicated local and global teams.
  • Available on the ASX: A new way to invest, the Schroder Real Return Fund makes it easy to buy, sell and own an actively managed diversified fund.

Investor suitability

For investors who seek moderate to high returns over the medium to long term and are prepared to accept some volatility in returns including negative returns over the short term.




Key Features

Investment style

Our approach to inflation plus (or real return) investing is to choose the portfolio that has the highest probability of achieving the required return objective over the investment horizon with the least expected variability around this objective. The Fund employs an objective based asset allocation framework in which both asset market risk premium, and consequently, the asset allocation of the portfolio are constantly reviewed. The portfolio will reflect those assets that in combination are most closely aligned to the delivery of the objective.

Investment approach

Unlike the traditional multi-asset investment approach that constructs investment portfolios around relatively static asset allocations, the Fund uses a dynamic approach to asset allocation to take full advantage of the opportunities presented in the market.

The diverse nature of the Fund's investment universe and broad investment ranges ensures that it has the flexibility to effectively and efficiently allocate to and select those assets that in combination target the greatest probability of achieving the Fund's investment objective in different market environments.

This is further enhanced by the incorporation of a multipronged risk management framework designed to identify, understand and mitigate any inherent downside risk within the Fund.

Why Schroders?

  • Organisational stability from a strong balance sheet, low levels of debt and majority family and staff ownership
  • Independence and exclusive focus on asset management aligns our interests with our clients
  • Size and experience of investment teams both locally and globally
  • Commitment to in-house research
  • Global perspective
  • Disciplined and robust investment process.


How we invest your money

The Fund may invest across a broad array of asset classes within the major categories of Growth, Diversifying and Defensive assets.

Asset classes and investment ranges

  • Growth assets, typically shares and property securities, offer potentially the highest return but also the highest volatility: 0% - 75% 
  • Diversifying assets, typically higher yielding debt and alternatives, offer higher potential returns usually with an income generating focus which assist in diversifying the portfolio's sources of return: 0% - 75%
  • Defensive assets, typically investment grade debt securities and cash and cash equivalents, are relatively secure with lower volatility: 0% - 100%

In order to meet the Fund's investment objectives, asset classes and investment ranges may be changed from time to time. We will give unitholders written notice of any material variation which we believe they would not have reasonably expected.