Schroder ISF Global Multi-Asset Income

Transcription

1 Unconstrained income investing Schroder ISF Global Multi-Asset Income SGD Share Classes

2 Schroder ISF Global Multi-Asset Income (the "Fund") is designed to help investors generate regular income regardless of market conditions. With an unconstrained and flexible approach to investing, we aim to provide income that is attractive, regular and sustainable without increased exposure to risk. Three key benefits Focuses on potential payouts of 5% p.a., paid monthly 1 An unconstrained & diversified approach to capture income Active asset allocation & risk management strategy with a volatility target of 5-10% p.a. Delivering sustainable income The Fund targets an annual yield of 5% 1, which investors can either receive as an income on a regular basis or have it reinvested back into the fund. potential payouts Intended monthly distribution calendar for 2018 Month Record Date Payout Month Record Date Payout January February March April May June 24 Jan 0.42% July 25 Jul 0.42% 21 Feb 0.42% August 29 Aug 0.42% 28 Mar 0.42% September 26 Sep 0.42% 25 Apr 0.42% October 24 Oct 0.42% 30 May 0.42% November 28 Nov 0.42% 27 Jun 0.42% December 19 Dec 0.42% Note: Schroder International Selection Fund is referred to as Schroder ISF throughout this document. 1 Distributions of 5% p.a. of the net asset value per unit of the Schroder ISF Global Multi-Asset Income (the Fund ) will be declared on a monthly basis. The distributions are not guaranteed and will be reviewed annually. In the event of income and realised gains being less than the intended distribution, distributions will be made from capital. Investors should be aware that the distributions may exceed the income and realised gains of the Fund at times and lead to a reduction of the amount originally invested, depending on the date of initial investment. 2 Schroder Global Multi-Asset Income

3 Taking advantage of global opportunities The Fund harvests income from a range of different asset classes, including global equities, investment grade bonds, high-yield bonds and emerging market debt. We source opportunities across asset classes, regions and sectors when establishing the asset allocation in order to take advantage of yield opportunities where they exist. Current portfolio allocation Yield 3.7% Net 31.4% Yield 51.4% Fixed Income EM Local Cur. EM USD Sov. EM USD Corp. US High Yield US Inv. Grade 5.8% 4.2% 4.4% 5.6% 2.2% Yield 9.9% Alternatives Property Catastrophe Bonds Infrastructure 3.9% 6.2% 7.0% Cash 7.4% Cash Source: Schroders, as at 31 December For illustrative purposes, not a recommendation to hold and sell. The equity allocation does not include equity index futures of 5.5% or equity options with a delta adjusted exposure of -2.6%. The government bond allocation includes duration futures held with an exposure of 1.1%. Note that the breakdowns are subject to change. Past performance is not indicative of future performance. Schroder Global Multi-Asset Income 3

4 Active asset allocation and risk management strategy An active approach to asset allocation allows the Fund to meet its yield objective and maximise total returns during all phases of the economic cycle. We also operate a robust risk management process for the Fund, monitoring risk at both a portfolio and security level. We prioritise the consistency and sustainability of income. We will not compromise on the quality of securities we hold in order to achieve a higher yield. % Apr 12 Oct 12 Apr 13 Oct 13 Apr 14 Oct 14 Apr 15 Oct 15 Apr 16 Oct 16 Apr 17 Oct 17 Dec 17 Government Bonds US Inv. Grade EM Local Cur. EUR Inv. Grade EM USD Sov. & Corp. US High Yield Alternatives EUR High Yield Cash & Income Source: Schroders, as at 31 December The equity exposure includes hedging and cash includes cash held for backing derivatives. Government bonds includes duration hedging. Alternatives exposure consists of municipal bonds, MBS, infrastructure and property. Past performance is not indicative of future performance. For illustrative purposes only and does not constitute as a recommendation to buy or sell. Managed by specialist investment teams Multi-Asset Team Overall asset allocation and risk management The Fund is designed to draw on the asset allocation, stock selection and risk management expertise of three specialist investment teams at Schroders. This collaborative approach can generate the most efficient access to opportunities across all asset classes. Global Fixed Income Team Active bond selection Quantitative Product (QEP) Team Active stock selection 4 Schroder Global Multi-Asset Income

5 Proven track record Schroder ISF Global Multi-Asset Income Performance; 18 Sept Dec Sep 13 Jan 14 Jul 14 Jan 15 Jul 15 Jan 16 Jul 16 Jan 17 Jul 17 Schroder ISF Glbl MA Inc A Acc SGD Dec 17 Schroder ISF Glbl MA Inc A Acc SGD H SGD A Acc SGD Hedged A Acc Yield 1 4.7% 4.7% Annualised Volatility 6.3% 3.7% Total Return % 13.0% Offer-to-Bid Total Return 13.0% 7.3% Annualised Return 4.1% p.a. 2.9% p.a. Offer-to-Bid Annualised Return 2.9% p.a. 1.7% p.a. Source: Morningstar, 31 December 2017, SGD A Dis and SGD Hedged A Acc share classes, bid-to-bid. 1 Yield is the next 12 months dividend yield using Schroders forecasts for the equities and using the current effective yield to maturity for the fixed income; it is gross of withholding tax. 2 Referring to cumulative performance since inception date of 18 September Volatility is calculated using daily returns since inception. Morningstar All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor Schroders nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not indicative of future returns. Fund characteristics 50.3% 2.8% 20.2% 16.0% 4.7% 3.3% Fixed Income 13.0% 12.8% 7.9% 15.0% 36.2% 10.1% North America Japan Europe Emerging Markets Asia Pacific Others US High Yield EM Local EM USD Corp. EM USD Sov. Gov. Bonds US Inv. Grade Fixed Income No. of Holdings 504 Dividend Yield 3.7% No. of Holdings 644 Effective Yield 4.9% One Year Dividend Growth 9.2% Price to Earnings 16.0x Market Cap Average Credit Rating Average Duration Credit Rating 3 BB+ 4.6 years Mega Cap 57.3% Large Cap 23.8% Mid Cap 14.9% Investment grade 39.7% BB rated 29.7% B & CCC % Small & Micro Cap 4.0% Source: Schroders, as at 31 December Credit ratings is based on average credit rating by S&P/Moody s/fitch. 4 Maximum exposure to CCC is 5%. The Fund is prohibited from investing into bonds with credit rating below CCC. For illustrative purposes only and does not constitute as a recommendation to buy or sell. Schroder Global Multi-Asset Income 5

6 Fund Name SGD Hedged A Dis SGD Hedged A Acc SGD A Acc SGD A Dis Fund Objective The fund aims to provide an income distribution of 5% per annum and capital growth over a market cycle by investing in a diversified range of assets and markets worldwide. The fund aims to provide a volatility (a measure of how much the fund's returns may vary over a year) of between 5-7% per annum. Launch Date 28 Feb Sep Feb 2015 Fund Currency SGD Mode of Subscription Cash / SRS Minimum Subscription Amount USD 1,000 or equivalent Sales Charge Up to 5% Management Fees 1.25% p.a. Dealing Frequency Daily Payout Frequency Monthly Not Applicable Monthly Share Class Available Distribution Only Accumulation Only Distribution Only Bloomberg Ticker SCHGMAH:LX SCHGMAH:LX SCGASGD:LX SCGMAIA:LX ISIN Code LU LU LU LU Fund Size USD 4.78 billion (as at 31 December 2017) Important Notes This is prepared by Schroders for information and general circulation only and the opinions expressed are subject to change without notice. It does not constitute an offer or solicitation to deal in units of any Schroders fund (the "Fund") and does not have regard to the specific investment objectives, financial situation or the particular needs of any specific person who may receive this. Investors may wish to seek advice from a financial adviser before purchasing units of any Fund. In the event that the investor chooses not to seek advice from a financial adviser, he should consider whether the Fund in question is suitable for him. Past performance of the Fund or the manager, and any economic and market trends or forecast, are not necessarily indicative of the future or likely performance of the Fund or the manager. The value of units in the Fund, and the income accruing to the units, if any, from the Fund, may fall as well as rise. Investors should read the prospectus, available from Schroder Investment Management (Singapore) Ltd or its distributors, before deciding to subscribe for or purchase units in any Fund. Funds may carry a sales charge of up to 5%. Published: February 2018 Schroders Reg. No H 6 Schroder Global Multi-Asset Income