Important Information:
1.The fund invests primarily in global equities and fixed income securities through the use of funds or derivatives.
2.For share classes with a general dividend policy, expenses will be paid out of capital rather than out of gross income. The amount of distributable
income therefore increases and the amount so increased may be considered to be dividend paid out of capital. Share classes with a fixed dividend
policy may pay out both income and capital in distributions. Where distributions are paid out of capital, this amounts to a return or withdrawal of part
of your original investment or capital gains attributable to that and may result in an immediate decrease in the net asset value of shares.
3.The fund invests in debt securities which may be subject to interest rate, credit and counterparty risks. The fund may invest in unrated and noninvestment grade securities which are exposed to greater credit risks.
4.The fund may invest in mortgage related and other asset backed securities that may be subject to interest rate, credit, valuation and liquidity risks.
5.The fund’s active management of currency positions may result in losses if the strategy/technique is not successful.
6.The fund may use derivatives to meet its investment objective but does not intend to use derivatives extensively for investment purposes. Derivatives
exposure may involve higher counterparty, liquidity and valuation risks. In adverse situations, the fund may suffer significant losses from their derivative
usage for hedging.
You should not make any investment decision solely based on this document. Please read the relevant offering document carefully for further fund details
including risk factors.
29 April, 2016
Schroder ISF Global Multi-Asset Income
Get on the Right Track
with Global Income
Opportunities
The Schroder ISF Global Multi-Asset Income Fund offers you an investment choice to enjoy regular income* as well as growth, from
a globally diversified portfolio that primarily invests in high income bonds and high dividend yielding equities. The fund will draw on the rich
experience and proven expertise of our investment teams who will actively manage the fund to maximise yield and total potential returns
in all seasons.
Why invest in the Schroder ISF Global Multi-Asset Income Fund?
Fixed payout of 5% p.a. (A Dis share class excluding AUD Hedged)*
With the primary objective of maximising sustainable yield, the fund intends to make a fixed payout of 5% per annum*. The payout will
primarily come from a portfolio of global high income bonds and high dividend yielding equities, selected for the quality and reliability
of their income.
Equity income investing is
relatively attractive
High dividend stocks are relatively
more attractive than broad equity market
High dividend stocks offer investors not only a higher yield, but
also better valuation and quality relative to the broad equity
market. The more stable earnings and cash-flows of high
dividend stocks also provide investors with better investment
opportunities. In addition, with interest rates remaining low, the
demand for income is here to stay, providing long-term support
for high dividend equity strategy over the medium to long-term.
Characteristics
Metric
MSCI ACWI High
Dividend Yield
MSCI AC
World Index
Income
Dividend Yield
4.1%
2.6%
Valuation
Price-to-earnings
19.2x
22.7x
Quality
Return on Equity
16.2%
15.6%
Source: MSCI, FactSet, as of 30 April 2016.
Enjoy the growth of alternative
assets
Flexibility to invest in alternative assets
The fund can invest in alternative assets such as infrastructure,
preferred securities, property, mortgage-backed securities (MBS),
asset-backed securities (ABS) and municipal bonds. These assets
ensure diversification and improve sustainability of the fund’s
income, and offer potential growth for investors.
Active asset allocation to
maximise yield and total returns
Mortgage-backed Securities (MBS)
Preferred Securities
Asset-backed Securities (ABS)
Property
Municipal Bonds
A wide range of asset classes
provide flexibility in asset allocation
﹪
90
80
70
Global Bonds
20 – 90%
60
Allocation
The current asset allocation range in global high income bonds
(20 – 90%), global high dividend yielding equities (10 – 50%),
alternative assets (0 – 10%) and cash (0 – 20%)1 gives the fund
manager flexibility to achieve the fund’s objective of achieving
yield and maximising total returns during different phases
of the economic cycle. We also implement active downside
risk management aiming to protect the fund’s value during
volatile markets without sacrificing the income earned from the
underlying assets.
Infrastructure
50
40
30
20
Global Equities
10 – 50%
10
0
0 – 10%
Equities
Bonds
Alternative Assets
0 – 20%
Cash
The exact asset allocation may deviate from the range mentioned above without prior notice to investors, please refer to the relevant offering document
for details.
1
Schroder ISF Global Multi-Asset Income
Fund Features
Top Holdings
– A Distribution share class offers a fixed payout* (for details refer to
table below)
– Capture growth potential through investment in high income bonds
and high dividend yielding equities around the world
– Enjoy the growth of alternative assets
– Active asset allocation to manage risk
Distribution Policy and Frequency
Share Classes
A
A
A
A
A
A
A
A
A
Dis- USD
Dis- HKD
Dis- GBP Hedged
Dis- AUD Hedged
Dis- EUR Hedged
Acc- USD
Acc- HKD
Acc- GBP Hedged
Acc- EUR Hedged
ISIN Code
Bloomberg
Ticker
LU0757359954
LU0894486033
LU0910996080
LU0911024122
LU0757360960
LU0757359368
LU0894485498
LU0903425840
LU0757360457
SCHGMIA LX
SCHAHKI LX
SCGMAGD LX
SCGMAUD LX
SCGMAHI LX
SCHGMAA LX
SCHAHKA LX
SCHAHAG LX
SCGMAHA LX
Distribution Distribution
Policy
Frequency
Fixed, 5% p.a.
Fixed, 5% p.a.
Fixed, 5% p.a.
Variable
Fixed, 5% p.a.
N/A
N/A
N/A
N/A
Monthly
Monthly
Monthly
Monthly
Quarterly
N/A
N/A
N/A
N/A
Weights (%)
UK Treasury 2% 22/07/2020
US Treasury Note 1% 15/09/2017
US Treasury Note 3.125% 15/08/2044
US Treasury Note 1.25% 29/02/2020
Schroder European Real Estate Investment Trust Plc
US Treasury 3.5% 15/02/2018
GCP Infrastructure Investments Ltd
US Treasury Note 1.375% 30/09/2018
US Treasury Note 2.375% 31/12/2020
US Treasury Note 1.75% 30/09/2019
Fund Performance
Cumulative
Performance (%)
Fund
YTD
3-mth
1Yr
3Yrs
5Yrs
Since
Launch
3.3
4.8
-5.8
-1.0
N/A
12.3
Annual Return (%)
2015
2014
2013
2012#
Fund
-6.9
2.8
5.8
7.4
Key Information
Fund Objective
To provide income and capital growth over the
medium to longer term by investing primarily in global
equities and global fixed income securities directly
or indirectly through the use of investment funds or
financial derivative instruments (including, but not
limited to, futures, options and credit default swaps).
Unit NAV (Class A Acc)
USD 112.30
Hi / Lo
(past 12 mths, Class A Acc)
USD 119.64 / 105.69
Fund Manager
Aymeric Forest & Iain Cunningham
Launch Date
18/04/2012
Fund Size (Million)
USD 4,753.94
Dividend Distribution Record*
Share Classes
A
A
A
A
A
Dis
Dis
Dis
Dis
Dis
-
USD
HKD
GBP Hedged
AUD Hedged
EUR Hedged
Distribution
Per Share
Price on
Record Date
Last
Record Date
0.384097
2.888796
0.407105
0.477333
1.137815
92.18
693.31
97.71
87.32
91.03
27/04/2016
27/04/2016
27/04/2016
27/04/2016
30/03/2016
0.8
0.6
0.6
0.6
0.6
0.6
0.6
0.5
0.5
0.5
Initial Charge up to (Class A) 5%
Upcoming Distribution Record Date of
Distribution Share Classes
25/05/2016
29/06/2016
27/07/2016
Note: The distribution record date may subject to change.
Geographical Breakdown
Weights (%)
North America
Emerging Markets
Europe
UK
Asia Pacific ex-Japan
Japan
Others
43.3
24.8
18.5
10.9
2.9
1.7
-2.1
Asset Type
Weights (%)
Equity
US High Yield
Government Bonds
EM Local Currency
EM USD Sovereign Bonds
EUR High Yield
Catastrophe Bonds
US Investment Grade Bonds
Others
Cash & Income
32.5
17.4
10.1
9.7
9.3
5.0
2.9
2.3
8.3
2.5
Management Fee (Class A)
1.25% p.a.
Dealing Frequency
Daily
Financial Year End
31/12
The Fund Offers an Investment Choice for
Investors Who
– wish to enjoy a fixed payout* and long-term potential of capital
appreciation
– look for active asset management that aims to maximise yield and
total returns over an economic cycle
– are positive on the potential growth around the world
Note: Investors should consider your own investment objective and risk tolerance level
and seek independent professional advice.
Schroder International Selection Fund is referred to as Schroder ISF.
* The monthly distribution is applicable to A class USD/HKD/GBP Hedged/AUD
Hedged distribution units (in respect of AUD Hedged distribution units, there is
neither a guarantee that such distributions will be made nor will there be a target
level of distribution payout), the quarterly distribution is applicable to A class
EUR Hedged distribution units. The manager will make distributions in respect of
distribution units. The manager has the sole and absolute discretion to vary the
rate and/or frequency of distributions, subject to one month’s prior notice to the
relevant unitholders. Distribution yield is not indicative of the return of the fund.
Distribution may be paid from capital of the fund. Investors should note that where
the payment of distributions are paid out of capital, this represents and amounts to
a return or withdrawal of part of the amount you originally invested or capital gains
attributable to that and may result in an immediate decrease in the value of units.
All fund information as at 29/04/2016, Source: Schroders. Fund performance based
on Class A Acc; NAV-NAV in USD with net income re-invested. The fund size quoted
includes all classes of the fund. # Performance is calculated from the fund’s since
launch date 18/04/2012.
Investment involves risks. Past performance is not indicative of future performance.
Please refer to the relevant offering documents for fund details including risk factors.
This material, including the website, is issued by Schroder Investment Management
(Hong Kong) Limited and has not been reviewed by the SFC.
Management Company: Schroder Investment Management (Luxembourg) S.A., 5, rue
Höhenhof, L-1736 Senningerberg, Grand Duchy of Luxembourg
Supervisory Authority: Commission de Surveillance du Secteur Financier, 110, route
d’Arlon, L-2991 Luxembourg