Schroder Monthly Global Value Equity Income Fund Achieves 16.2% Return Year-to-Date

Schroders Investment Trust Management announced on October 20 that the "Schroder Monthly Global Value Equity Income Fund (Equity-Feeder Type)" has recorded a return of up to 16.2% so far this year, surpassing its annual target distribution rate of 7%. Based on the current net asset value, the fund is able to provide an annual distribution of approximately 9%.

Since its launch in 2015, the Schroder Monthly Global Value Equity Income Fund has become one of Schroders' flagship monthly-distribution global equity products. Over the past three years, it has achieved a cumulative return of 33.9%, and over five years, a cumulative return of 56.2%.

According to Schroders Korea, the fund has maintained its principal while providing an annual distribution of around 8% over the past five years. The fund invests in undervalued global value stocks relative to their fundamentals to secure dividend income, while also employing a covered call option strategy to generate option premiums. Key holdings include Continental (Germany), Vodafone (UK), Standard Chartered (UK), GSK (UK), and Pfizer (USA).

The Schroder Monthly Global Value Equity Income Fund is a feeder fund that invests in the offshore "Schroder ISF Global Dividend Maximiser Fund," with the master fund's assets under management surpassing 100 billion won as of early last month. As of August this year, the offshore fund's global assets under management reached 900 million US dollars (approximately 1.2553 trillion won).

Schroders Korea analyzed that this performance is a result of increased investor interest in value stocks amid heightened volatility caused by a high interest rate and high inflation environment. The company also noted that in aging societies such as Japan and Taiwan, monthly-distribution funds are emerging as alternatives to pensions, serving as tools for retirement asset management and long-term portfolio diversification. Accordingly, demand for this fund is expected to continue growing.

A representative from Schroders Korea explained, "The Schroder Monthly Global Value Equity Income Fund offers a high distribution rate, providing additional capital gain opportunities by participating in long-term equity market uptrends." The representative added, "While monthly dividend exchange-traded funds (ETFs) have distributions that vary depending on earnings or dividend size, monthly-distribution funds can maintain relatively stable payout levels, offering investors predictable cash flows."

Simon Adler, head of the Schroders Value Equity Team, emphasized, "Although the tightening stance has eased since COVID-19, the elevated levels of interest rates and inflation are likely to persist, so investors should prioritize predictable distributions and mid- to long-term capital appreciation opportunities."

Scott Thomson, head of the Schroders Structured Fund Management Team, stated, "Since 2005, the Schroders Structured Fund Management Team has been implementing a dividend premium strategy and has accumulated experience in the over-the-counter options investment sector." He added, "Based on our extensive investment capabilities and expertise, we will continue to provide investors with opportunities for stable and sustainable returns."

This content was produced with the assistance of AI translation services.