Schroder Absolute Return Income ETF
Schroders has launched an active fixed income exchange traded fund (ETF) on the Chi-X stock exchange - the Schroder Absolute Return Income ETF - with the code PAYS.
The fund offers exposure to the existing Schroder Absolute Return Income Fund, which invests in Australian and international fixed income securities. It aims to outperform cash and term deposits over the medium term, but with less volatility than equity markets. It can also use derivatives and active currency management to help achieve its investment objective.
“Many of the options that offer higher yield for investors – including hybrids and leveraged loans – also increase the risk of capital loss – potentially more than investors realise. PAYS can complement these types of investments by reducing overall portfolio risk, which is particularly important now, as we enter the late stage of the investment cycle," Schroders' lead portfolio manager, Mihkel Kase, said.
The fund has a management cost of 0.54 per cent per annum.