Change of Name, Investment Objective and Policy - Schroder ISF Asian Bond Absolute Return Fund
The funds' strategy will change from absolute return to total return. Changes are effective 1 March 2018.
Impacts on
these guided architecture products
- Oracle
- Paragon
- Quantum
- Quantum Malaysia
- LifePlan
- LifePlan Lebanon
- Protected Lifestyle
- Protected Lifestyle Lebanon
- Preference
- Kudos
- Prosper
Impacts on
open architecture products including
Why are Schroders making the changes?
The Asian bond markets were historically relatively volatile versus bond markets in the US and Europe because of their historical low level of market development. However, over the past 10 years, Asian bond markets have grown in sophistication and depth and their relative volatility has dropped significantly. The manager believes that an absolute return strategy, which aims to preserve capital over a 12 month period, served well in the past when the relative volatility was higher. A total return strategy, which has a longer investment horizon, will be better able to provide for investors looking to capitalise on opportunities in Asian bond markets in the future. Therefore, the fund will change from an absolute return strategy to a total return strategy.
In addition, the fund will be able to invest in bonds from a wider range of Asian countries, as the definition of Asia will be expanded for this fund to include the west Asian countries listed in the new investment policy.
In line with the above, the fund will change name to "Schroder International Selection Fund - Asian Bond Total Return". These changes, along with a reduction in Annual Management Charge, will take effect from 1 March 2018.
A full summary of the changes can be found in the Schroders shareholder notification opposite.
Policyholder notification
We have written to our guided-architecture policyholders affected by the changes. Where an investment adviser has been appointed to make the investment decisions they will receive the letter instead. Their financial adviser will receive a sample letter for their information. If policyholders are happy to remain invested in the fund they do not need to do anything. If they want to switch to another fund they can do so free of any switch charge.
Sample letters can be viewed opposite.