Schroder Investment Management Limited
31 Gresham Street, London EC2V 7QA
Telephone +44 (0)20 7658 6000 Fax +44 (0)20 7658 6965
www.schroders.com
News Release
Schroders launches Managed Monthly
High Income Fund
23 April 2012
Schroders announces the launch of the Managed Monthly High Income Fund, a fund-of-funds vehicle
investing in a selection of Schroder Maximiser and Schroder Fixed Income unit trusts. The Fund will
be available to investors from 21 May 2012.
In an environment where income is difficult to find, investors will draw a monthly distribution from four
different income sources: equities, bonds, property securities and income from volatility (via
Schroders’ existing Maximiser range of funds).
The monthly distributions will be approximately
uniform, with a potential yield of 5.5%1 or more per annum.
Investors will gain access to eight of Schroders’ active investment strategies including four equity
Maximiser funds: Income Maximiser, Asian Income Maximiser, ISF European Dividend Maximiser and
Global Property Income Maximiser. On the fixed income side, the exposure will be to Sterling Broad
Market, ISF Global High Yield, Strategic Bond and Absolute Return Bond Funds. This diversified
approach will see asset allocation at 50:50 across equities and fixed income.
Thomas See, Head of Structured Fund Management and responsible for Schroders’ Maximiser fund
range, will co-manage the fund along with Gareth Isaac, Senior Fixed Income Portfolio Manager.
Thomas See, Head of Structured Fund Management at Schroders and co-manager of the
Managed Monthly High Income Fund said:
“This is a fund that pays a higher monthly yield from four well-diversified sources of income, several
asset classes and multiple geographies, despite a difficult yield environment. By tapping into eight of
1
Target yield is not guaranteed.
Schroders plc
Registered office at above address
Reg. 3909886 England
1
For your security, communications may be taped or monitored
Schroder Investment Management Limited
31 Gresham Street, London EC2V 7QA
Telephone +44 (0)20 7658 6000 Fax +44 (0)20 7658 6965
www.schroders.com
Schroders’ actively managed investment strategies, we can help reduce the risk of relying on the
performance of any single fund or strategy, while creating a diversified product with less volatility than
a pure equity investment.”
Robin Stoakley, Managing Director of UK Intermediary at Schroders, said:
“Given interest rates remain low and returns from cash after inflation can be negative, it’s difficult to
find credible investments paying an attractive yield. The Fund offers investors low volatility, an
attractive monthly income stream and the opportunity of some capital growth over the long term. ”
All annual management charges for the individual underlying funds will be rebated back to the fund-offunds; therefore only one single layer of fees will apply. The fund will sit in the IMA Mixed Investment
20-60% Shares sector and will be available in two share classes, the clean fee Z class as well as the
A class. The annual management charges for the A and Z share classes will be 1.25% and 0.625%
respectively.
Schroders’ Structured Fund Management Team, headed by Thomas See, manages over £1.4bn in
Maximiser income enhancement strategies.
-EndsFor further information, please contact:
Kathryn Sutton
Tel: +44 (0)20 7658 2589/ kathryn.sutton@schroders.com
Notes to Editors
For trade press only. To view the latest press releases from Schroders go to:
http://ir.schroders.com/media
Capital risk: The capital is not guaranteed.
Interest rate risk: Investment in bonds and other debt instruments including related derivatives is
subject to interest rate risk. The value of the fund may go down if interest rate rise and vice versa.
Market risk: The Fund will not hedge its market risk in a down cycle. The value of the fund will move
similarly to the markets.
Credit risk – debt securities: A security issuer may not be able to meet its obligations to make timely
payments of interest and principal. This will affect the credit rating of those securities.
Credit risk – non-investment grade: Non-investment grade securities will generally pay higher yields
than more highly rated securities but will be subject to greater market, credit and default risk.
Schroders plc
Registered office at above address
Reg. 3909886 England
2
For your security, communications may be taped or monitored
Schroder Investment Management Limited
31 Gresham Street, London EC2V 7QA
Telephone +44 (0)20 7658 6000 Fax +44 (0)20 7658 6965
www.schroders.com
Liquidity risk: The fund invests in other funds and its liquidity depends upon the liquidity of those
underlying funds. If underlying funds suspend or defer the payment of redemption proceeds, the
fund's ability to meet redemption requests may also be affected.
Derivatives: The derivative strategy is applied repeatedly over three-monthly periods. This strategy will
increase the income paid to investors and reduce the volatility of returns, but there is the potential the
performance or capital value may be eroded
Schroders plc
Schroders is a global asset management company with £187.3bn (€224.2 billion, $291.0 billion) under
management as at 31 December, 2011. Our clients are major financial institutions including pension
funds, banks and insurance companies, local and public authorities, governments, charities, high net
worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate
from 32 offices in 25 countries across Europe, the Americas, Asia and the Middle East. Schroders
has developed under stable ownership for over 200 years and long-term thinking governs our
approach to investing, building client relationships and growing our business.
Further information about Schroders can be found at www.schroders.com or on Schroders Talking
Point www.schroders.com/talkingpoint.
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alerting service.
Schroders plc
Registered office at above address
Reg. 3909886 England
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For your security, communications may be taped or monitored