Schroders targets income seekers with defined outcome fund

Schroders has launched a Secure Distribution fund offering a 7.5% annual return for half of a 20-year fixed term.

The group described the fund as a combination of a unit trust and a structured product, in that it has a fixed life but also daily dealing and the same charging structure as the other unit trusts in Schroders’ range. Managed by John Mclaughlin, it will invest in multi-asset portfolios run by Johanna Kyrklund (pictured) and team. Investors pay in capital for the first ten-year accumulation period and then receive quarterly payouts over the second ten-year drawdown period. The payments are returned as capital rather than income. James Rainbow, marketing director, said: “Investors receiv...