[Month] 2008 | Fund Flyer
Golden Bull Fund Manager Award 2013
Golden Bull Fund Manager Award 2012
Golden Bull Fund Manager Award 2011
Fund Summary
Schroder
Balanced Fund - Wholesale Class
Overview
The Schroder Balanced Fund - Wholesale Class is a traditional multi-asset portfolio investing in a selection of
Growth (typically shares and property securities), Diversifying (typically higher yielding debt and alternatives)
and Defensive (typically investment grade debt securities and cash) assets. Its investment objective is to
achieve a return of 5% p.a. above Australian inflation (before fees) over the medium to long term with an
emphasis on risk taken in recognition that investors prefer relatively stable returns over time.
Features and benefits
−− Traditional asset allocation framework incorporating a Strategic Asset Allocation based on a long
run absolute risk-return framework. Consistent Tactical Asset Allocation shifts are incorporated
to factor in shorter term considerations. Within asset classes active security selection is also
employed to generate excess returns above relevant benchmark indices.
−− Focussed risk management: The investment process incorporates a multi-pronged risk
management framework designed to identify, understand and mitigate any inherent downside risk
within the portfolio.
−− Transparent and liquid: The strategy investments are held in predominantly traditional assets with
no leverage and with strict limits on exposure to liquidity constrained investments.
−− Diversification: A key emphasis is to ensure the portfolio is diversified across a broad array of risk
premia, assets and securities.
−− 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$7.8 billion (as at 30 June 2014) of which A$1.5
billion is invested in the Schroder Balanced strategy. 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 450 investment professionals in all key regions and asset classes (as at June 2014).
How the Schroder Balanced
Fund invests
Our philosophy is based on the idea that understanding, managing and allocating risk is as important
to meeting our investment objectives as is our understanding and allocation of sources of return. While
accepting risk is necessary in order to lift returns over time, investors often take more risk than they
need to achieve their goals. A properly constructed balanced fund should be a fund that will perform
well across diverse economic and market environments (not just in rising equity markets). The Fund’s
investment process involves several key steps:
Asset allocation
Identifying what assets to own and when to own them is the most important step in the investment process
as it will have the greatest impact on the overall return and risk characteristics of the Fund. The Fund
incorporates a Strategic Asset Allocation based on a Schroder’s proprietary medium term asset class return
projections and risk expectations. Investment allocations are adjusted for shorter term considerations to
derive the most suitable tactical asset allocations to add value and manage risk.
Security selection
Different asset classes have their own unique set of fundamentals, which drive relative performance
within the asset class. This makes security selection an important step in the process. Each asset class
is analysed by specialist analysts and portfolio managers within the Schroders Group to determine
appropriate positions to be taken within the asset class. These views are based on a rigorous investment
process, which is customised for each local market, asset class and investment style to best capture
prevailing market conditions. Risk control is optimised to fit within the aggregate portfolio risk in a way
which provides the optimal return for minimal risk.
Fund Summary
Schroder Balanced Fund - Wholesale Class
Risk management and portfolio construction
Investment process (cont.)
Once asset allocation has been determined and the appropriate security selection established, we
then manage the overall portfolio with a view to minimising risks over time and constantly reassessing
portfolio positioning with respect to implementation of positioning, a range of options are considered to
achieve the best outcome.
Asset allocation
Risk management and
portfolio construction
Security selection
What are the risks?
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, 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 Fund please refer to the Product Disclosure Statement.
Fund information
Fund inception date
August 2002
Valuation
Every business day
Minimum investment
$25,000
Buy/sell spread
0.22% on application; 0.22% on redemption
Entry/exit fees
Nil
Management costs
0.90% pa
Distributions
Normally last business day of June and December
Contact details
Ray Macken
Head of Sales
[email protected]
Ph: 02 9210 9330
Mob: 0414 300 796
Mardi Hall
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)
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 Balanced 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.
August 2014 SC970