Schroders today announced the global launch of a new multi-asset income fund exclusively available to HSBC global private banking and wealth clients for six months across Asia, Europe, and the Middle East.
The fund was created in response to the new era of high inflation and interest rates, with HSBC and Schroders recognising that successful income investing will require a well-diversified and highly flexible approach when compared with the previous decade, according to a statement by Schroders.
“What has worked over the past decade may not work in the next decade for investors in search of income and capital growth. In a world of elevated inflation and interest rates, investors’ capital needs to work harder,” said Peter Harrison, group chief executive officer of Schroders.
The Schroder ISF Dynamic Income fund is designed to deliver an attractive and resilient income stream by investing in a diversified portfolio of assets worldwide, including equities, fixed income, and alternative investments such as convertibles bonds, securitised debt, insurance-linked securities, and emerging market debt.
The fund also aims to provide capital growth through controlled thematic opportunities and regular income components to ride out market volatility.
“Combining Schroders’ extensive investment expertise with HSBC’s strong distribution network, Schroder ISF Dynamic Income provides HSBC Global Private Banking and Wealth clients with a differentiated investment solution that aims to deliver consistent income and long-term capital growth,” Harrison said.
“This launch complements our existing strong fund offering to provide an additional option for our clients to put cash to work for their portfolios,” added Lavanya Chari, global head of investments and wealth solutions of HSBC Global Private Banking and Wealth.
The fund will be actively managed by Schroders’ head of multi-asset growth and income Remi Olu-Pitan, and head of multi-asset income Dorian Carrell.
It will also incorporate environmental and/or social characteristics, within the meaning of Article 8 of the Sustainable Finance Disclosure Regulation (SFDR), defined as “a fund which promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices”.
