Schroder Absolute Return Income (Managed Fund) PAYS
About this Fund
|FUND MANAGER||Schroders Australia|
|ASSET CLASS||FIXED INTEREST|
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.
|DISTRIBUTION FREQUENCY||Typically monthly|
|NO. OF HOLDINGS|
– Stability of a global firm with strong heritage
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
|RISK LEVEL||Low to Medium|
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%.