Schroder Absolute Return Income Fund - Professional Class
About this Fund
Fund Detail
PDS | https://informedinvestor.com.au/view/pds/101612-2023-12-15-02:57.pdf |
FUND MANAGER | Schroders Investment Management Australia |
ASX Code | |
APIR | SCH0024AU |
ASSET CLASS | FIXED INTEREST |
INVESTMENT STYLE | The Fund is an absolute return focused strategy that has the flexibility to invest across the broad fixed income universe. |
INVESTMENT PROFILE | To outperform the Benchmark by 2.5% p.a. before fees over the medium term. |
CURRENCY MANAGEMENT | Active management |
INCEPTION DATE | 24-06-2002 |
BENCHMARK | RBA Cash Rate |
FUND SIZE | RBA Cash Rate |
DISTRIBUTION FREQUENCY | Monthly |
NO. OF HOLDINGS | 1000+ |
FEES | 0.38% p.a. |
STRUCTURE |
Benefits
Benefits | Benefits of investing in the Schroder Absolute Return Income FundThe benefits of investing in the Fund include:
Investor suitabilityFor investors who seek steady distributions from a portfolio of income generating securities and returns in excess of cash over the medium to long term with a focus on capital preservation. |
RISK LEVEL | |
INVESTOR SUITABILITY |
Risks
Title | |
Detail |
Key Features
Fund overviewThe Schroder Absolute Return Income Fund is an absolute return focused strategy that invests in Australian and international fixed income securities to deliver regular income to investors. With a focus on managing downside risks it aims to outperform cash and term deposits over the medium term, but with less volatility than equity markets and aims to avoid negative returns over any rolling 12-month period. The Fund may also use derivatives and active currency management to help achieve this investment objective. How the Fund is managedAdopting an absolute return approach, the most critical element of the investment process is to identify which assets to own and when to own them. This is determined through our valuation driven return/risk framework, underpinned by a focus on downside risk. Unconstrained by design, the Fund can diversify its exposures across geography, issuer type, maturity, ratings grade and capital structure dimensions, with allocations to these dimensions supplemented by duration management and alpha strategies. Risk management is crucial to control the Fund's exposure to the aggregation of portfolio risks, in particular to limit correlation to equity markets and to minimise volatility and drawdowns. This approach is complemented by extensive fundamental research by local and global analysts, as well as insights from Schroders' extensive fixed income capability. The targeted result is a well-diversified portfolio of bonds and other debt securities with the potential to deliver consistent returns above cash and term deposits, with high liquidity but with much lower risk than the equity market. |
Mandate
How we invest your moneyThe Fund may invest across a wide range of Australian and global corporate bonds across the credit spectrum, subordinated securities, mortgage and asset backed securities, government and quasi- government bonds, developing market debt, cash and cash equivalents. The Fund may also use derivatives and active currency management. Asset classes and investment ranges(Asset class: Investment Range)
*Maximum aggregate exposure to high yield assets will not exceed 50%. |