Schroder Investment Trust "Schroder Global Bond Income Fund Sailing Smoothly... 1-Year Return 8.2%"

Schroder Investment Management announced on the 22nd that the Schroder Global Bond Income Fund recorded a cumulative return of 8.2% over the past 12 months.

The underlying fund, the ‘Schroder ISF Global Credit Income Fund,’ is Schroder’s flagship global bond investment fund. Since its inception in November 2016, it has been managed with a balanced approach to returns and risk management, without being constrained by investment style, region, or sector.

Unlike most overseas funds that invest solely in high-yield bonds, the portfolio diversifies appropriately between investment-grade bonds with relatively high interest yields and good credit quality, and high-yield bonds with strong outlooks. As of the end of the first half of this year, the global assets under management of the invested offshore funds were approximately $4.24 billion (about 5.8 trillion KRW).

The global bond income fund of funds set up domestically recorded a return of 8.2% over one year compared to August last year. Schroder stated, "The current global soft landing environment is favorable for this fund," adding, "If central banks in developed countries lower interest rates in the future, the prices of bonds included in the portfolio could rise due to declines in interest rates and spreads, making it an ideal environment for bond investment."

There is growing positive expectation for overseas bond funds such as the global bond income fund as the U.S. central bank, the Federal Reserve (Fed), is increasingly likely to cut the benchmark interest rate next month.

The Schroder Global Bond management team is focusing on strategies that continuously generate additional returns, moving away from the fixed notion that performance is only achieved during interest rate cut cycles. The team maintains a preference for the Australian and Canadian markets, where growth has slowed, and holds a positive view on U.S. government agency-backed mortgage-backed securities (MBS).

Julien Houdain, Head of Schroder Global Bond Income Management, said, "The Schroder management team adopts a bond selection process aimed at achieving consistent excess returns and stable performance across changing interest rate cycles." He added, "We will not only generate excess returns but also defend against loss risks during market downturns and overcome market challenges through disciplined risk management."

The Schroder Global Income management team primarily focuses on developed markets such as Europe and the U.S., investing in ▲investment-grade corporate bonds ▲U.S. bonds ▲global high-yield ▲emerging market sovereign and corporate bonds ▲asset-backed securities (ABS), pursuing high bond income returns and capital gain opportunities.

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