Fund Summary
Schroder
Real Return CPI Plus 3.5% Fund
Wholesale Class
Overview
Why choose the Schroder
Real Return CPI Plus 3.5%
strategy?
Target consistent real returns
The Schroder Real Return CPI Plus 3.5% Fund strategy has the clear
investment objective of returning 3.5% per annum (before fees) above
Australian inflation over rolling 3 year periods.
Minimising the risk of loss
Investments are managed with the intention of minimising the chance of
losing money while also achieving a real return relative to inflation over a
12 month period.
Flexible asset allocation
We only invest in assets that are likely to assist the strategy earn its
return objective taking into account changing market conditions.
Regular distribution
Targets a quarterly distribution of at least the RBA cash rate.
Investors choose the Schroder Real Return CPI Plus 3.5% strategy for the following investment benefits:
−− Real objective: The strategy was developed in Australia for Australian clients and designed to target
real returns above local inflation. Delivery of the performance objective is the prime focus – not arbitrary
benchmarks or peer comparisons.
−− Focussed risk management: The investment decision making is framed around achieving a real
return outcome with the greatest certainty and managing the risks that matter, like downside risk and
the risk of not achieving the target return. The investment process incorporates a multi-pronged risk
management framework, designed to identify, understand and mitigate any inherent downside risk
within the portfolio.
−− Unconstrained asset allocation: Differentiated approach whereby the investment opportunities are
constantly reassessed in recognition that valuations matter with wide investment ranges providing
flexibility to allocate effectively and efficiently.
−− Income: For investors seeking to generate reliable income, the strategy aims to distribute at least the
RBA cash rate on a quarterly basis.
−− Transparent and liquid: The strategy investments are held in predominantly traditional assets with no
leverage and with strict limits on exposure to liquidity constrained alternatives.
−− Real diversification: A key emphasis is to ensure the portfolio is diversified across a broad array
of risk premia, assets, and securities. The aim is to enable the portfolio to achieve its objective in all
environments.
−− Cost effective and value for money: The strategy is designed to offer clarity and transparency in
pricing. It is sensibly and fairly priced with a competitive management cost seeing the benefits of target
performance accruing to the investor, not the manager.
Dedicated, experienced
investment team
Schroders’ Australian Multi-Asset team manages over A$10.3 billion* of which more than A$8.5 billion*
is invested in the Schroder Real Return CPI Plus strategies, which also includes the Schroder Real
Return CPI Plus 5% Fund. Clients range from major institutions to individual investors. While the highly
experienced Australian team has clear ownership and accountability for meeting investor objectives, it
also draws on the resources of Schroders’ strong global multi-asset team, and over 480* investment
professionals in all key regions and asset classes (*as at 31 March 2015).
Investment process
The Schroder Real Return CPI Plus 3.5% strategy invests in a highly diversified portfolio of assets drawn
across the three broad types of investments according to the likely returns and risks:
−− Defensive assets – those which are relatively secure with low volatility such as investment grade debt
securities and cash
−− Diversifying assets – those offering higher potential returns usually with an income generating focus
which assist in diversifying the portfolio’s sources of return e.g. high yielding debt and alternatives.
−− Growth assets – offering potentially the highest returns but also higher volatility e.g. equities and
property trusts.
Fund Summary
Schroder Real Return CPI Plus 3.5% Fund
Wholesale Class
Investment process
Indicative asset allocation ranges
100%
80%
60%
40%
20%
Defensive
Diversifying
Growth
The Schroder Real Return CPI Plus 3.5% strategy uses a dynamic approach when allocating to the
different types of assets to take full advantage of the opportunities presented in the market. As the
market’s risks and returns change, so too will the strategy’s composition. The diverse nature of this
strategy ensures that it will manage downturns in all markets while minimising losses.
What are the risks?
It is important to understand the risks associated with investing in the Fund. Schroders actively
assesses and manages risk at every stage of the investment process. The main risks specifically
with investing in this strategy are market risk, equities risk, interest rate risk, credit risk, derivatives risk
and risks associated with international investing such as movements in exchange rates.
For further details about the risks of investing in this strategy please refer to the Product Disclosure
Statement.
Fund information
Contact Us
Fund name
Schroder Real Return CPI Plus 3.5% Fund Wholesale Class
APIR Code
SCH0096AU
Inception date
5 March 2015
Distribution frequency
Normally quarterly distribution
Management costs
0.60% pa
mFund code
SCH12
Please call Client Services on 1300 136 471
or email us at info.au@schroders.com
Or visit us at www.schroders.com.au
Disclaimer: Investment in the Schroder Real Return CPI Plus 3.5% Fund Wholesale Class may be made on an application form in the current Product Disclosure Statement (PDS) which
is available from Schroder Investment Management Australia Limited (ABN 22 000 443 274, AFS Licence 226473) website www.schroders.com.au. The information contained in this
flyer is general information only. It does not contain and should not be taken as containing any financial product advice or financial product recommendations. Before acting on the
information contained in this flyer you should obtain a copy of the PDS and consider the appropriateness of the information in regard to your objective, financial situation and needs
before making any decision about whether to invest, or continue to hold. The repayment of capital and performance in the Fund is not guaranteed by Schroders or any company in the
Schroders Group. Opinions constitute our judgement at the time of issue and are subject to change. Past performance is not an indicator of future performance. Investment guidelines
represented are internal only and are subject to change without notice. For security reasons, telephone calls may be taped.
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