Schroders has launched the Schroder Flexi Total Return Fund Class R units to support post-retirement needs of retail investors, available exclusively to HSBC clients in Hong Kong for a six-month period.
The fund is designed to meet the evolving retirement needs of investors by providing capital growth potential, a regular income stream and enabling liquidity, which Schroders recognises to be among key needs particularly in retirement, according to a statement by the UK asset manager.
Incepted more than 10 years ago, the fund’s objectives are to provide a balance of capital growth and income over the medium to long term. It targets a fixed monthly payout of 6% per annum (applicable to Class R – USD/HKD Dis MF — and dividends may be paid out of capital) through a newly-launched special share class for retirement.
Gopi Mirchandani, Hong Kong chief executive officer, and head of strategy, Asia Pacific, Schroders, said: “According to our latest Schroders Hong Kong Retirement Survey3, Hongkongers are particularly concerned about higher-than-expected healthcare costs, inflation eroding the value of their assets, a potential major market downturn and the risk of outliving their savings.”
“The Schroder Flexi Total Return Fund adds to our range of product offerings to support the Hong Kong community in seeking financial security after they enter retirement.”
Sami Abouzahr, head of wealth and premier solutions, wealth and personal banking, Hong Kong, HSBC, commented: “Everyone has unique wealth objectives, but common investment goals in retirement often include generating a stable income stream, achieving modest growth, and maintaining liquidity for unexpected expenses. Funds that offer targeted monthly payouts alongside a long-term growth strategy can effectively meet those needs.”
Keiko Kondo, head of multi-asset investments, Asia, Schroders, added: “The Schroder Flexi Total Return Fund is not bound by any traditional market benchmarks and therefore, can capture quality growth opportunities globally arising from the different investment asset classes it invests in across equities, investment-grade fixed income, alternatives (such as commodities, gold and insurance-linked securities) and more.
“We believe trade disruptions still cast a shadow over the narrative of US exceptionalism, and hence we continue to see investment opportunities outside the US across equities, credit, currencies, and sovereign bonds.”
