Global credit: How to achieve stable income in the current volatile environment
published : 2 Apr 2020 at 14:30
The economic situation has undeniably become more volatile in recent years, with fluctuating stock market indexes around the globe and ongoing trade wars between economic giants.
In this climate, credit has become more interesting as it can mitigate risks and yield stable income whereas equity carries higher risk and lower seniority in the payout order.
Bonds and credit offer investors several incentives: growth, income, liability matching, capital preservation, and reduced volatility.
This is why around three years ago Schroders launched the “Schroder ISF Global Credit Income”, a fund suitable for the kind of market environment we are currently experiencing. The fund is truly a solution for investors looking for stable income while mitigating drawdown of capital.
As a global investment manager, Schroders has always been about helping investors meet their financial goals. A worldwide business that is managed locally, Schroders has over 5,000 people determined to build prosperity for clients across six continents.
Schroders was recently awarded “Best Fund Provider – Global Bonds” by Asian Private Banker, an Asia-based intelligence, data, and connections company which focuses on Asia's private wealth management communities.
The fund “Schroder ISF Global Credit Income” just celebrated its third anniversary with assets under management of over US$3 billion. The success is due to a very strong credit market in 2019 in terms of total returns. Both investment grade and high yield markets notched double-digit gains. 2020 is also expected to see strong demand for global credit.
The fund adopts a dynamic approach to capturing diverse income sources from across global credit markets. It invests in bonds of different credit qualities across 60 countries and 100 sectors. Over the past three years, the fund has been delivering a steady income stream. During this period, this strategy has delivered a cumulative return of 18.4%.
Talk to your Citigold Relationship Manager to see if Schroder ISF Global Credit Income is right for you
To reap the full benefit of mutual fund investment requires an excellent advisory service that facilitates the sometimes complicated procedures and offers a wide range of financial products. Citigold by Citibank is considered among the most investment-worthy for mutual fund investors.
Moreover, Citibank is the only financial advisor in Thailand that provides direct access to offshore mutual funds and bonds for retail investors. For global funds, Citigold allows investors to invest in foreign currency, reducing financial transaction processes and double fee payment.
Citigold offers over 200 funds to suit each client’s risk and lifestyle preferences, offered by six Thai and 13 global, world-class asset management companies. Furthermore, Citigold clients are able to directly select and buy foreign debentures from over 80 top companies, including Walt Disney, Apple, Coca-Cola, Alibaba, Google Alphabeth and Microsoft, with no intermediary, thus mitigating risks with multiple asset classes.
It is reassuring to note that every Citigold investment comes with consultation from Citi relationship managers trained at the Wharton Global Wealth Institute.
Citigold has a Total Wealth Advisor (TWA) platform to help each client achieve their financial goals systematically. For example it picks mutual funds and identifies the optimum investment each month in order to be able to send your children to study abroad when they turn 18.
Thanks to Citibank’s global banking network, clients are entitled to investment and lifestyle privileges in every corner of the world. Additional services include Citibank Global Wallet that makes travel abroad easier by exchanging money into foreign currency accounts and spending via debit cards without a 2.5% interchange fee. The card supports eight currencies (USD, EUR, HKD, SGD, AUD, CHF, JPY, and GBP). Transactions are conducted conveniently through the Citi Mobile Application. By choosing to exchange money at a good rate before travelling the system reduces financial transaction processes and exchange rate risk. For more information, please contact Citigold Hotline at 0-2081-0999.