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Schroders launches Global Multi-Asset Income Fund

18th April 2012 Print

Schroders announces the launch of Schroder ISF Global Multi-Asset Income, which aims to provide sustainable quality income by dynamically investing in attractive income opportunities across a range of asset classes, regions and sectors.

Aymeric Forest, Senior Multi-Asset fund manager, will manage the fund with the objective to pay a distribution of 5% per annum in equal quarterly or monthly instalments with an expected 7% total return per annum over a full market cycle. Aymeric, supported by the multi-asset team, will manage this as a well-diversified and directly-invested fund that aims to offer quality income with more stable expected returns than could be easily achieved with a single asset class solution. The investment strategy focuses on investing in high quality global fixed income and global equity securities with positive cash flows and strong balance sheets. There is also a particular focus on risk management at the security and portfolio level.

Aymeric Forest, Fund Manager of Schroder ISF Global Multi-Asset Income, commented: "This fund aims to provide investors with a sustainable income by focusing on both selecting high quality securities across a broad investment universe and on active portfolio construction. We are currently seeing interesting opportunities within equities in healthcare in the UK and Japan, consumer staples in the US and Asia, and telecoms in China and South Africa. We are also finding attractive yields in some US municipal bonds and high yield debt and in local currency emerging markets with loose monetary policies. We are cautiously positioned within our exposure to financials and prefer bonds issued by US and UK insurers."

Nico Marais, Head of Multi-Asset Investment and Portfolio Solutions, also commented: "In a low yielding environment investors are increasingly struggling to narrow their retirement gap without taking on significant risk. In looking for income, their choices have been mainly limited to either bond or high dividend equity funds. Our Global Multi-Asset Income product is designed to overcome the artificial barriers posed by asset class specific income opportunities. We offer a less constrained global search for quality income while also giving investors the diversification benefits of a multi-asset portfolio."