For professional investors and advisers only
Schroder International Selection Fund
Global Multi-Asset Income
Focusing
on Income
Demand for a reliable and well-diversified income stream has
never been stronger, yet the current economic environment has
made this increasingly difficult to achieve. Generating a sustainable
income stream with a moderate risk profile is no longer possible by
investing in a single asset class.
Before the global financial crisis in 2008, investors could expect to
achieve a 5% yield by investing in government bonds with a 10-year
maturity. As yields have fallen, investors seeking that level of income
have had little choice but to invest in riskier assets, pushing many
investors out of their comfort zone in terms of risk exposure.
Now there is a solution for those seeking a regular and sustainable
yield with lower risk, in-line with a typical cautious managed fund,
where many investors will be more comfortable.
Source: Schroders, as at October 2015.
S C H R O D E R
I S F
G L O B A L
M U L T I - A S S E T
I N C O M E
Targeting a
clear outcome
Schroder ISF* Global Multi-Asset Income is designed to help investors generate a regular income
stream in the current low-growth, low-yield environment, where traditional sources of income can no
longer fulfil their requirements. We aim to provide an attractive, regular and sustainable income without an
increased exposure to risk.
Schroder ISF Global Multi-Asset Income offers a complete income solution for a broad range of investors.
Delivering sustainable income
We target a fixed annual distribution of 5% p.a.** which can be distributed or accumulated
within the fund. Alongside generating a regular income stream, we also aim to grow capital,
with a total combined return of 7% p.a.**
Taking advantage of global opportunities
We harvest income from a range of different asset classes, including global equities, investment
grade bonds, high-yield bonds and emerging market debt. Our fund managers source
opportunities across asset classes, regions and sectors when establishing their asset allocation
in order to take advantage of yield opportunities wherever they exist.
Focus on quality
Our fund managers prioritise the consistency and reliability of income.They therefore focus
on the quality of securities, looking for equity and fixed income investments where the yield is
supported by strong fundamentals, and will not sacrifice quality to achieve the yield.
Risk management
Our fund managers operate a robust risk management process, where they pursue a diversified
approach and monitor risk at both a portfolio and security level. As such, the fund is coherently
managed as a single entity rather than simply ‘packaging’ together disparate strategies.
Expertise and resource
The fund is managed by Aymeric Forest and Iain Cunningham from the Multi-Asset team. They
are responsible for overall asset allocation and risk management. Individual security selection is
carried out by security specialists: Schroders’ Quantitative Equity Product (QEP) team and the
Multi-Asset Advanced Beta team for equities, and the global Fixed Income team for bonds.
Source: Schroders, as at October 2015.
*Schroder International Selection Fund is referred to as Schroder ISF throughout this
brochure.
**The fund intends to make regular fixed distributions to investors. The distribution is
reviewed annually by the managers to ensure that it is still suitable given the fund’s
focus on sustainable income. If its income is insufficient to cover the payments, the
payments may reduce the fund’s capital. The target 5% distribution and 7% return
are gross of fees, targets only and are not guaranteed.
5%
P.A.**
5–7%
INCOME
TARGET
7%
P.A.
TARGET REALISED
VOLATILITY (MAXIMUM
10% P.A.)
P.A.**
TARGET TOTAL
RETURN
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S C H R O D E R
I S F
G L O B A L
M U L T I - A S S E T
I N C O M E
Providing income for a
broad range of investors
Planning your clients’ income needs isn’t all about the numbers – it will take into account their current
circumstances as well as establishing a realistic view of how they want to live in the future. There are a
number of moments in a person’s life when income-producing investments might come in handy; whether
they are paying for school or university fees, needing healthcare support, or requiring supplemental income
to earnings when approaching or throughout retirement.
Schroder ISF Global Multi-Asset Income can be used to provide extra income when receiving
a sustainable stream of income is a key requirement. Whilst the distribution share class will provide
immediate access to income to cover the cost of a specific life event, the accumulation share class is
designed to save for longer-term objectives.
Access to regular income at your convenience
Distribution share class
Immediate access
Supplementary
income
Healthcare
Accumulation share class
Saving for the longer term
Special
occasions
Education
Retirement
A rainy day
Making use of income investing requires a thorough and honest understanding of what your client wants
to achieve, both personally and financially, and the level of risk they are prepared to take. For more
information, please visit www.incomeIQ.com
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Source: Schroders, as at October 2015.
S C H R O D E R
I S F
G L O B A L
M U L T I - A S S E T
I N C O M E
A robust and coherent
investment process
The fund’s investment process centres on the Global Income Committee which leverages the breadth of
Schroders’ expertise across the Multi-Asset, Fixed Income and QEP teams. Chaired by Aymeric Forest and
Iain Cunningham, who have overall responsibility for the fund, members of the committee frequently meet
to exchange investment ideas, review the fund and discuss overall asset allocation and risk management.
This team-based approach is used to combine bottom-up and top-down investment approaches as
effectively as possible, while responding to the challenges of choosing securities in line with the incomefocused philosophy of the fund.
3 step investment process
1
Asset allocation
Flexible allocation across and
within asset classes
Directly invested
2
3
Equity security
selection
Fixed income
security selection
Risk management overlay
Highly diversified
Focus on identifying high yielding,
quality securities to generate a
sustainable income stream
Focusing on risk-adjusted yields
Our approach to targeting risk-adjusted yields, results in the selection of securities where the yield is
backed by stable fundamentals, ensuring the sustainability of income streams.
Source: Schroders, as at October 2015.
4
S C H R O D E R
I S F
G L O B A L
M U L T I - A S S E T
I N C O M E
An experienced
multi-disciplinary team
Multi-Asset & Portfolio Solutions
Over 100 investment professionals globally
Aymeric Forest
Lead Fund Manager;
Head of Multi-Asset Investments Europe
Iain Cunningham
Co-Fund Manager
Monthly Global Income Committee
In-depth quarterly investment meetings, on-going dialogue
Security Selection Specialist teams
Over 150 investment professionals across Equities and Fixed Income
US High Yield
Global Equities
European
Investment Grade
European High
Yield
US Investment
Grade
Municipal Bonds
Emerging Markets
Local Currency
Emerging Markets
Sovereign
Infrastructure
Property
Risk management overlay
Multi-Asset team
“
The fund is supported by a global multi-disciplinary team
including over 200 investment professionals, all focussed on
generating sustainable income across asset classes
”
Aymeric Forest
Head of Multi-Asset Investments Europe and Lead Fund Manager
5
S C H R O D E R
I S F
G L O B A L
M U L T I - A S S E T
I N C O M E
Aymeric Forest
Head of Multi-Asset Investments Europe and Lead Fund Manager
Aymeric Forest joined Schroders in May 2011. His investment career
began in 1996. Aymeric is the lead manager of Schroder ISF Global
Multi-Asset Income and responsible for investment on behalf of European
Multi-Asset clients and complex segregated mandates. He is also a
member of the Global Asset Allocation Committee and the Volatility Risk
Premia group leader. Prior to joining Schroders, Aymeric was Global Head
of Investment Solutions at BBVA in Madrid, responsible for the multi-asset
products. He was also Head of Tactical Asset Allocation quantitative
strategies and senior fund manager at ABN AMRO. He is a CFA
Charterholder and has a Masters degree in Finance, Nancy 2 University
(France), Giessen (Germany) and Lund (Sweden).
Iain Cunningham
Co-Fund Manager
Iain Cunningham is responsible for the management of a number of
Multi-Asset mandates that are principally focused on income and
dynamic asset allocation. He specialises in currency and commodity
research and is a member of the Strategic Investment Group Multi-Asset
(SIGMA). He joined Schroders in 2007, is a CFA Charterholder and holds
a Masters in Economics and Finance and a Bachelors in Economics from
Loughborough University.
Key information
ISIN code
LU0757359368
Bloomberg code
SCHGMAA:LX
Date of inception
18 April 2012
Base currency
USD**
Ongoing charge (latest available)1
1.58%
Entry charge
5.00% of the gross investment amount
Information in the table above is for the A Accumulation share class, for further share class information please see the Prospectus.
** EUR, GBP, CHF, AUD, RMB, HKD and SGD hedged share classes also available. 1The ongoing charges figure is based on the last year’s
expenses for the year ending May 2015 and may vary from year to year.
Source: Schroders, as at October 2015.
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About Schroders
€437.4bn managed across equities,
fixed income, multi-asset, alternatives
and real estate.
An extensive global network of over
3,600 employees.
37 offices in 27 countries across Europe,
the Americas, Asia and the Middle East.
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Risk warnings
The capital is not guaranteed. The fund intends to make regular fixed distributions to
investors and, if its income is insufficient to cover these payments, these payments
may reduce the fund’s capital. All equity forward sales are with a single counterparty. In case of default, the relevant equities will be sold in the market and this may
affect performance. 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. 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.
Investments denominated in a currency other than that of the share-class may not
be hedged. The market movements between those currencies will impact the shareclass. 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. The fund may hold indirect short exposure in anticipation of a decline of
prices of these exposures or increase of interest rate. The fund may be leveraged by
trading in a high volume of derivatives to achieve a risk target consistent with its risk
profile. Changes in China’s political, legal, economic or tax policies could cause losses
or higher costs for the fund.
Over 200 years’ experience of
investment markets.
To find out more please visit
www.schroders.com/gmai
or speak to your local Schroders representative
Source: Schroders, as at 30 June 2015.
Important information: This document does not constitute an offer to anyone, or a solicitation by anyone, to subscribe for shares of Schroder International Selection Fund (the
“Company”). Nothing in this document should be construed as advice and is therefore not a recommendation to buy or sell shares. Subscriptions for shares of the Company
can only be made on the basis of its latest Key Investor Information Document and prospectus, together with the latest audited annual report (and subsequent unaudited semiannual report, if published), copies of which can be obtained, free of charge, from Schroder Investment Management (Luxembourg) S.A. An investment in the Company entails
risks, which are fully described in the prospectus. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall
as well as rise and investors may not get the amount originally invested. Schroders has expressed its own views and opinions in this document and these may change.
This document is issued by Schroder Investment Management Ltd., 31, Gresham Street, EC2V 7QA, who is authorised and regulated by the Financial Conduct Authority. For
your security, communications may be taped or monitored. w47820