The fund can invest across the broad fixed income universe as well as currencies, to seek out returns and income opportunities, whilst focusing on protecting investor capital. 

An actively managed exchange traded fund (ETF) seeking to boost income while preserving capital.

Why Schroders?

– Stability of a global firm with strong heritage
– Dedicated to building a sustainable future, with sustainability integrated into our investment processes
– A diverse and experienced investment team with an independent view
– Active in every aspect of our business
– Investors are at the heart of everything we do

Investing in the Fund offers a range of benefits including:

– Broad diversification: access to exposure to a broad universe of bonds inaccessible for most retail investors
– Predictable income: the Fund aims to provide investors with predictable and stable monthly income to assist with matters such as retirement planning
– Active management: full application of investment capabilities including asset allocation, credit sector selection, security selection, active currency and derivative strategies allows Schroders to both focus on avoiding capital drawdowns while taking advantage of market anomalies
– Strong research commitment: the Schroders Credit Research team performs detailed fundamental analysis of corporates in Australia and globally
– Experienced investment team: local portfolio management is well integrated into the broader Schroders global fixed income team delivering global insight, research and implementation in key
regions and asset classes
– Availability on Chi-X: the Fund’s quotation on the Chi-X market makes it easy for investors to buy, sell and own units in an actively managed diversified fixed income fund

This Fund is more likely to be appropriate for a consumer seeking capital preservation and income for a small or core component of their portfolio, with a medium risk and return profile. This Fund is unlikely to be suitable for a consumer seeking capital growth or someone seeking high returns. 

To outperform the RBA Cash Rate after fees over the medium term while aiming to avoid negative returns over any rolling 12-month period.

How Schroders seeks to manage risks

The investment process aims to minimise risk by focusing on the valuation of assets and minimising exposure to overpriced assets where risk is high. Schroders also seeks to minimise risk through diversification of the Fund’s assets, by raising cash where appropriate and through the utilisation of specific strategies designed to mitigate downside risks. Derivatives may be used for purposes such as hedging and for the more efficient and cost effective implementation of investment strategies. Where derivatives are used, Schroders will ensure that, at all times, there are sufficient liquid funds to discharge

The Fund may invest across a wide range of Australian and international fixed interest securities. This may include corporate bonds across the credit spectrum, subordinated securities, mortgage and asset backed securities, government and quasi- government bonds, emerging market debt, cash and cash equivalents.

Exposure to these asset classes may be achieved directly or via an investment in other investment vehicles (including those operated or managed by Schroders, such as the Schroder Absolute  Return Income Fund (ARSN 092 060 172)).

The Fund may also use derivatives (both exchangetraded and over-the-counter) and active currency management, subject to complying with any restrictions imposed by the Chi-X Operating Rules (as amended from time to time).

The Fund may use derivatives for hedging purposes or to gain market exposure by using derivatives to provide economic performance for the Fund. This includes but is not limited to using derivatives to adjust the Fund’s exposure to interest rate, credit risk and currency exposures.

The permitted asset allocation ranges are set out below:   

¹Maximum aggregate exposure to high yield assets will not exceed 50%.