Schroders launches new fund to deliver stable returns with reduced risk in 'all market conditions'

Schroders launches new fund to deliver stable returns with reduced risk in 'all market conditions'

Michelle Zhu
16/08/18, 01:08 pm

SINGAPORE (Aug 16): Schroder Investment Management (Singapore) has launched its new fund, the Schroder ISF Global Target Return, which aims to “grow wealth and preserve capital in all market conditions” by flexibly investing across asset classes globally.

This includes a diversified range of growth, defensive and diversifying assets from more than 40 countries across 15,000 stocks, 18,000 bonds and other investments such as alternatives and currencies.  

In a Thursday announcement, the investment manager says Schroder ISF Global Target Return balances its return objective – namely the return target of USD three-month Libor + 5% per annum over three years, before fees – against its risk objectives of minimising volatility and downside loss, while providing a sustainable income stream with monthly payouts.

It is currently available to Singapore investors through Citibank, with more distributors expected to come on board over the next few months.

The fund carries up to 4% entry charge and a management fee of 1.25% p.a. Its base currency is in USD, and it offers currency-hedged share classes denominated in SGD, EUR and AUD.

Investors also have a choice between accumulation and distribution share classes, therefore giving investors the option of either reinvesting their distributions or receiving regular monthly payouts.

Distributions, which are not guaranteed and will be reviewed annually, are to be declared on a monthly basis. Should income and realised gains come in less than the intended distribution, the fund it will make its distributions from capital.

Albert Tse, head of intermediary business, South East Asia, Schroders, says the new funds will serve as a superior risk-adjusted vehicle for investors to capture opportunities through different market cycles.  

“In today’s uncertain investment environment characterised by extended periods of volatility, investors are looking for peace of mind from an innovative solution that is able to deliver stable returns with reduced risk in all market conditions. This means that the strategy needs to be able to grow wealth to help Singapore investors meet their long-term financial goals such as retirement, as well as deliver a regular income that answers to needs in the nearer term,” says Tse.

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