Schroders’ ISF Global Multi-Asset Income reached $623m assets
Schroders has announced that its Schroder ISF Global Multi-Asset Income has reached $623m assets under management, with flows coming from Asia, Europe, the Middle East, and South Africa, confirming appetite for a diversified income solution in an environment of weak economic growth and low interest rates.
The fund, which aims to provide sustainable income by investing in attractive income opportunities across a range of asset classes, regions and sectors, is managed by Aymeric Forest and Iain Cunningham.
The objective is to pay a distribution of five per cent per annum in monthly (USD share class) or quarterly (EUR share class) instalments with an expected seven per cent total return per annum over a full market cycle.
“The search for income is a natural defensive mechanism. This is not just a European but a global phenomenon. 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.
Schroder ISF Global Multi-Asset Income is designed to overcome the artificial barriers posed by asset class specific income opportunities,” said Peter Beckett, head of international marketing at Schroders.
Aymeric Forest, fund manager of the fund added: “Having an unconstrained approach helps to avoid chasing income at any price. Currently, we prefer the utilities, pharmaceuticals and telecommunications sectors in Japan and emerging markets. Within fixed income, we have diversified our investment away from government debt and into Latin America and European corporate bonds because of low expected default rates and improving consumer credit growth. Our flexible approach enables us to focus on the sustainability of the income.”