Golden Bull Fund Manager Award 2013
Golden Bull Fund Manager Award 2012
Golden Bull Fund Manager Award 2011
Fund Summary
Schroder
Credit Securities Fund - Wholesale Class
Overview
The Schroder Credit Securities Fund - Wholesale Class is an active strategy that predominantly invests in
corporate bonds and other credit securities. The Fund seeks to diversify by investing across the corporate
capital structure, geographically and across the credit ratings spectrum. The Fund also has the flexibility
to invest in cash and other debt securities (such as government bonds) to help preserve capital during
downturns in the credit cycle. Adopting an absolute return approach, the Fund aims to deliver consistent
returns above cash and term deposits but with less risk and volatility than the equity market.
Features and benefits
Active strategy offering regular income stream and liquidity
–– Targeting returns above cash and term deposits but with less volatility and downside risk
than equities
–– Diversified pool of quality domestic and global credit and income securities
–– Typically provides regular income with distribution payments aligned with underlying income yield
–– Transparent portfolio of assets with daily liquidity and pricing
Proven investment approach
–– Well defined, disciplined and proven investment process that aims to ensure we are in the right assets
at the right time
–– Credit selection process is supported by a significant body of fundamental credit analysis; performed
by the Schroders’ Global Credit Research team covers companies in Australia and globally
–– Focus on risk adjusted returns and the flexibility to be very defensive when appropriate
–– Experienced and dedicated investment team with clear accountability that is well integrated
into Schroders’ broader global fixed income team. This delivers global insight, research and
implementation in key regions and asset classes.
Portfolio summary
How the Fund works
Performance objective
outperform the RBA Cash Rate by 2.5% p.a. before fees over the
To
medium term.
Style
Actively managed
No. securities
> 300
Investment opportunity set
Corporate bonds across the credit spectrum, subordinated securities
asset backed securities, government and quasi-government bonds,
developing market debt and cash.
Our broad fixed income philosophy is underpinned by 3 key ideas. Firstly, fixed income is typically
held for defensive purposes and these include liquidity, capital preservation, liability management and
to diversify equity risk. Secondly, investors should utilise the breadth of the fixed income universe
to improve risk and return outcomes (as opposed to closely tracking arbitrary benchmarks). Lastly,
volatility is not risk as we view losing money and not delivering on objectives as our core risk.
Asset allocation
In developing the portfolio’s asset allocation, we start from an absolute perspective to construct an initial
(or starting point) portfolio, unencumbered by any predetermined benchmark allocations. We combine our
medium term expectations of fixed income asset class risk and return with shorter term views on market
valuation, cyclical developments and liquidity considerations, matched against the Fund’s objectives to
develop appropriate asset allocation of the Fund. By utilising the broadest opportunity set and actively
managing these exposures in this part of the process it helps ensure we hold the right assets at the right
time which in turn helps us to achieve our broader portfolio goals such as delivering consistent returns with
limited tolerance for drawdowns and a requirement for liquidity.
Fund Summary
Schroder Credit Securities Fund - Wholesale Class
Security selection
Investment process (cont.)
Security selection is carried out in a manner aiming to exploit those areas with the most potential for
adding value. Independent fundamental credit research and active management at the security level
are essential elements of our approach which focuses on the avoidance of default and identifying
value in individual securities. We undertake our own rigorous analysis and form our own independent
views rather than rely on external ratings agencies to make this assessment. We will not invest in
securities we haven’t researched.
Risk management
A key element of risk management is to ensure risk is being taken in the right places and that an
appropriate level of risk is held in the portfolio. We monitor a broad array of risk measures including
examining those exposures and factors contributing to risk and the size of their risk contributions,
which will influence decisions relating to asset allocation, sector and security selection and their
respective position sizing.
Implementation
In the last step of the process our aim is to find the best ways to implement the investment decisions generated.
It is important to understand the risks associated with investing in the Fund. The main risks specifically
with investing in this Fund are market 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 Fund please refer to the Product Disclosure Statement.
What are the risks
Fund features
Fund inception date
August 2002
Valuation
Every business day
Minimum investment
$25,000
Buy/sell spread
0.15% on application; 0.15% on redemption
Entry/exit fees
Nil
Management costs
0.75% pa
Distributions
Normally last business day of March, June, September and
December
Contact details
Ray Macken
Head of Sales
[email protected]
Ph: 02 9210 9330
Mob: 0414 300 796
Mardi Hall (NSW)
Head of Retail Sales
[email protected]
Ph: 02 9210 9318
Mob: 0403 040 565
Chris Boyd (WA)
National Account Manager
[email protected]
Ph: 02 9210 9259
Mob: 0416 077 166
Jasmine del Villar (NSW/SA/ACT)
National Account Manager
[email protected]
Ph: 02 9210 9313
Mob: 0401 576 385
David Burke (QLD/NSW)
National Account Manager
[email protected]
Ph: 02 9210 9256
Mob: 0403 106 377
Jude Fernandez (VIC/TAS/NSW)
National Account Manager
[email protected]
Ph: 02 9210 9312
Mob: 0414 604 772
Lisa Hamilton
(Researchers & Platforms)
National Account Manager
[email protected]
Ph: 02 9210 9316 Mob: 0410 564 775
Daniel Connell (VIC/NSW)
Business Development Manager
[email protected]
Ph: 02 9210 9352 Mob: 0414 385 968
Retail Sales Team: 1300 136 471
Disclaimer: Investment in the Schroder Credit Securities 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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