“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, announcing a multi-asset income fund exclusive to HSBC customers. Photo: 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, announcing a multi-asset income fund exclusive to HSBC customers. Photo: Schroders

Schroders announced on Monday that they are entering an exclusive partnership with HSBC to introduce a multi-asset income fund, a move inspired by evolving financial dynamics.

Schroders, a global investment management firm with $923bn in assets under management globally, has announced an exclusive distribution agreement with HSBC Global Private Banking and Wealth. This partnership, announced on Monday 15 January, marks the launch of the Schroder ISF Dynamic Income Fund, available exclusively to HSBC clients in Asia, Europe and the Middle East for six months.

The Luxembourg-domiciled Schroder ISF Dynamic Income Fund has been designed in response to evolving market conditions characterised by high inflation and interest rates, stated the press release. Schroders and HSBC recognise the need for a diversified and flexible approach to income investing, departing from the strategies of the past decade.

Investment strategy change

The fund’s primary objective, they said, is to provide investors with a resilient income stream while navigating the complexities of current financial markets. It will achieve this through a diverse portfolio that includes equities, fixed income assets and alternative investments such as convertible bonds, securitised debt, insurance-linked securities and emerging market debt.

Beyond income generation, the fund is strategically designed to facilitate capital growth, said Schroders. It will actively explore thematic investment opportunities and incorporate regular income components to mitigate market volatility.

For this ambitious strategy, Schroders has enlisted the expertise of Remi Olu-Pitan, head of multi-asset growth and income, and Dorian Carrell, head of multi-asset income.

Lavanya Chari, global head of investments and wealth solutions at HSBC Global Private Banking and Wealth, emphasised, “A diversified investment approach enables our clients to stay invested through different market cycles. This launch complements our existing strong fund offering to provide an additional option for our clients to put cash to work in their portfolios.”

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