No interest rate hikes will be seen at the FOMC meeting, and interest rate cuts will depend on the economy. Follow the footsteps of legal persons and buy funds. Compound bond investment strategies are safe allocations.

Compiling the contents of the press conference of the May FOMC meeting (held in the early morning of May 2, Taiwan time), Schroders’ key points are summarized: no interest rate increase is expected, and interest rate reduction depends on the economy. Keep interest rates unchanged at 5.25% ~ 5.5%, high interest rates It may continue for a while, and the timing of interest rate cuts has not been relaxed, which will depend on economic data. Federal Reserve (Fed) Chairman Jerome Powell also announced that the pace of balance sheet reduction will be slowed down starting in June to ensure the stability of the money market. Ball said that the current policy interest rate is already restrictive and will not restart interest rate increases, and the biggest negative impact on the bond market has been lifted. The Schroders bond investment team stated: In response to the current market conditions, it is still necessary to maintain bond products in the investment portfolio. The preference is mainly for short and medium-term maturities to reduce the impact of interest rates and inflation. In addition, financial industries with sound fundamentals and specific Securitized commodities with evaluation advantages also have investment opportunities.

Compilation of the May FOMC meeting (held in the early morning of May 2, Taiwan time) Press conference content Schroders Key summary: No interest rate increase in sight, interest rate cut depends on the economy, keeping interest rates unchanged at 5.25% ~ 5.5% High interest rates may continue The timing of interest rate cuts will depend on economic data as Federal Reserve (Fed) Chairman Jerome Powell announced that he would slow down the pace of balance sheet tightening starting in June to ensure the stability of the money market.
Ball said that the current policy interest rate is already restrictive and will not restart interest rate increases, which is the biggest negative for the bond market.
The Schroders bond investment team stated: In response to the current market conditions, it is still necessary to maintain bond products in the investment portfolio. The preference is mainly for short- and medium-term maturities to reduce the impact of interest rates and inflation. In addition, financial industries with sound fundamentals and securities with evaluation advantages Chemical commodities also have investment opportunities.
Global interest-collecting bonds are both popular and popular. According to the fund subscription and redemption data released by the Association of Investment Trust and Investment Advisors from January to March this year, it can be observed that in terms of overseas investment grade bond funds, the top five funds with the largest net subscription volume have attracted approximately 64.4 billion yuan in total, accounting for net subscriptions. The total amount has reached nearly 80%*, among which the Schroders Global Income Bond Fund (this fund invests a considerable proportion in non-investment grade high-risk bonds and the source of the fund\’s dividend distribution may be principal) is the only one paying dividends this year. Funds with positive return reports are both popular and popular; the fund has always been loved by legal persons. As the investment public\’s acceptance of diversified allocations increases, it is recommended that it be an indispensable part of long-term planning.
[Data source: China Investment and Investment Consulting Association as of 2024/3/31; Lipper Information as of 2024/4/30].
Netizens often say: Only children make choices, I want them all; yes, products with complex forms can always meet the diverse needs with little price difference and are welcomed by customers. And Schroders (Ring) Global Interest Collection Bond funds (the fund invests a considerable proportion in non-investment grade high-risk bonds and the source of the fund\’s dividend distribution may be principal) is just such a product.
A senior director of the Financial Management Center shared: The investment scope of composite bond funds covers the world and does not place heavy emphasis on the United States; it covers investment grade bonds and non-investment grade bonds. According to the current high-interest environment, corporate bonds are the mainstay and public bonds are supplemented; economic growth and inflation are also considered. Actively manage major events such as levels, interest rate policies, special changes, etc. During the duration, flexibly allocate securitized assets such as securitized credit or agency-guaranteed real estate mortgage bonds to respond to different market environments, strengthen the resilience of the bond portfolio, and reduce possible fluctuations.
Composite bond investment strategy with peace of mind at the turning point of interest rates. Since the fourth quarter of last year, investors have been concerned about when the Federal Reserve will start to cut interest rates. We believe that instead of worrying about the Fed\’s actions, it is better to leave this worry to the active investment management team for suggestions. You can make good use of the current turning point in interest rates and bonds will benefit greatly through the compound bond investment strategy.
Although recent data have caused bond yields to rise and the US Federal Reserve will be more cautious, on the premise that the central bank\’s willingness to cut interest rates has not changed, we are still optimistic about the steepening of the yield curve, which means that there is more room for downside in short-term interest rates than in the longer term.
In terms of asset allocation, we prefer covered bonds with attractive yields. On the other hand, we have revised down our view on European investment-grade bonds due to limited room for further narrowing of credit spreads, but we still prefer European investment-grade bonds with shorter maturities. The evaluation is relatively unfavorable. Expensive U.S. investment-grade and non-investment-grade corporate bonds.
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Discretionary investment is not risk-free. The company\’s past manager performance does not guarantee the minimum return on the entrusted investment assets. The company is not responsible for the profits and losses of the entrusted investment assets except to fulfill the duty of care of a good manager. Nor does it guarantee the minimum return. Customers should be informed before signing a contract. Read the Discretionary Investment Prospectus.
The economic trend forecast mentioned in this article does not necessarily represent the performance of this discretionary investment business.
Investors will have different investment performance due to different entry times. Past performance does not represent a guarantee of future performance.
After carefully reading the information, investors should still seek prudent investment evaluation from a financial advisor.
The companies or stocks mentioned are only examples and do not represent a recommendation of any financial product or investment advice.
According to the \”Fund Risk and Reward Level Classification Standards\” published by the Securities Investment Trust and Consulting Business Association of the Republic of China (Fund risk and reward levels are divided into five levels from low to high: RR1, RR2, RR3, RR4, and RR5).
Investors are reminded that this level classification is based on general market conditions and reflects the risk of market price fluctuations. It cannot cover all risks and should not be used as the only basis for investment. Investors should still pay attention to the individual risks of the funds they invest in.
The investment risks of this fund include: credit risk of bond issuer default, overall emerging market risk, stock concentration risk and industrial boom cycle risk, interest rate change risk, liquidity risk, foreign exchange control and exchange rate change risk, investment regional politics, Risks of economic changes.
Investing in the benefit certificate portion of the fund may involve repeated charging of manager fees.
Investors in the A1 category and U category are required to pay distribution fees calculated at 0.5% and 1% of the fund\’s net asset value respectively per year, which may result in an increase in actual expenses.
The distribution fee is reflected in the daily net asset value of the fund and is calculated based on the net asset value per unit of the class and is accumulated daily and paid monthly to the management company or its appointee.
There is no subscription fee for U-level products but a deferred sales fee may apply.
If the U-class is redeemed within 3 years after issuance, the U-class deferred sales fee will be deducted from the redemption proceeds at the following rates: 3% for redemption within the first year after issuance, 2% for redemption within the second year % Redemption within the third year is 1%; redemption after holding for 3 years is 0%.
The U level will be automatically converted to the A or AX level free of charge on the monthly scheduled redemption date after the investor has held it for 3 years, and there is no need to pay distribution fees.
For the various fees mentioned above, please read the public prospectus and the \”Declaration of Fee Structure for Overseas Fund Handling Fees\”.
For information on the \”anti-dilution adjustment\” mechanism used by overseas funds, please read the fund\’s public prospectus.
The Fund\’s approval or approval by the Financial Supervisory Commission does not mean that it is risk-free.
The past manager performance of the fund management company does not guarantee the minimum investment return of the fund; the fund management company is not responsible for the profits and losses of the fund except for fulfilling the duty of care of a good manager, nor does it guarantee the minimum return. Investors should read the fund prospectus carefully before subscribing.
The economic trend forecast mentioned in this article does not necessarily represent the performance of the fund. Please read the fund\’s disclosure prospectus for fund investment risks.
The Fund may invest in foreign securities. In addition to profits and losses arising from actual transactions, the investment target may bear the risk of changes in interest rates, exchange rates (including exchange controls), market prices of securities or other indicators, which may directly lead to losses of principal, and the maximum possible loss is the investment capital. All gold.
The fees borne by the fund (including distribution fees) have been disclosed in the fund\’s prospectus or investor instructions. Investors can check it at the Public Information Observatory/Overseas Fund Information Observatory.
If this fund is applicable to OBU business and is sold to non-residents when sold by OBU.
Each fund has different investment returns due to its different pricing currencies.
The Fund may offer exchange rate hedging levels that are not denominated in the base currency and no hedging levels.
The purpose of the hedging level is to reduce the impact of fluctuations in the denomination currency exchange rate of this level on the investment performance of the fund and to allow investors who invest in this level to enjoy performance close to the investment base currency level.
Hedging-level exchange rate hedging operations will be flexibly adjusted by the management team based on market conditions. The hedging income is only an estimate and not a guarantee of profit.
The costs required for hedging operations or foreign currency spreads may affect Fund performance.
Investors with non-hedging levels should note that the non-base currency denominated level may not engage in exchange rate hedging operations. That is, in addition to bearing the relevant market risks of the investment portfolio, investors also need to bear the exchange rate of the base denominated currency and the underlying denominated currency of the investment portfolio. risk.
Investments that are converted into currencies other than the currency denominated in the Fund are subject to exchange rate risks and the Company does not encourage investors to choose non-base currency denominated levels for the purpose of speculating on exchange rate changes.
The South African currency is generally considered a highly volatile/risky currency and investors should be aware of the additional exchange rate risks associated with investing in the South African currency class.
If the South African currency exchange rate fluctuates excessively in the short term, it will significantly affect the net value per unit of the South African currency level of the fund. For details, please refer to the investment risk disclosure chapter of the public prospectus.
Investors investing in funds that pursue high-yield bonds should not account for an excessively high proportion of their investment portfolio.
Since the credit rating of high-yield bonds does not reach investment grade or has no credit rating and is highly sensitive to changes in interest rates, the Fund may not pay the principal due to rising interest rates, declining market liquidity or default by the bond issuer. loss in interest or bankruptcy.
This fund is not suitable for investors who cannot bear the relevant risks.
This fund is suitable for growth-oriented investors who can take higher risks and pursue asset appreciation.
High-yield bonds are more volatile than government bonds and investment-grade bonds. Investors should consider their market entry strategy carefully.
The fund may invest in U.S. 144A bonds (the investment ratio of domestic funds can be up to 30% of the total assets of the fund; there is no limit on overseas funds). The bonds are private securities. The disclosure of financial and operating information of the bond issuer is relatively opaque and it needs to meet the qualifications of a qualified investment institution. Only those who can conduct transactions are prone to the risk of insufficient liquidity, incomplete disclosure of financial information or opaque prices leading to high volatility.
When the market fluctuates violently, the Fund may face the aforementioned risks and incur losses.
Any bond market has opportunities and risks at three levels: exchange rate, interest rate and debt credit. The bond markets of single countries and emerging market countries are highly volatile. Investors should weigh their own risk tolerance and make appropriate arrangements.
The classification of China is based on the definition of Bloomberg based on the location of the company\’s headquarters rather than the location of the listed exchange; some China-related securities such as state-owned enterprise stocks, red chip stocks, etc. are also included; however, they still meet the requirements of direct investment by the Financial Supervisory Commission. Securities listed on the mainland securities market shall not exceed 20% of the net value of overseas funds.
Investors should pay attention to the specific political, economic and market investment risks in the Chinese market.
Underlying funds that invest in emerging market stocks/bonds generally involve higher risks and should be considered as long-term investment vehicles. These stock/bond funds may be subject to risks such as illiquidity and less reliable custody and management.
The absolute return investment strategy aims to achieve positive returns 12 months after entering the market at any time, but it does not guarantee capital preservation or profit.
The source of dividend distribution for stock funds is the stock dividends distributed by the fund\’s investment targets. Due to the different dividend payment dates of the investment targets held by the fund, a higher proportion of the current dividend distribution will be paid from the principal. However, if the investment targets are received in the current period, If the dividends are greater than the amount of dividends that should be distributed by the Fund, the Fund can still distribute dividends as planned without spending the principal.
The companies that invest in high-yield stock-related funds may not be able to sustain profits in the future.
Investing in funds related to small companies has higher potential stock price fluctuation risks and higher liquidity risks. That is, small companies have lower liquidity and higher price fluctuations, so their fund values ​​fluctuate more than large company funds.
Dividend funds refer to the premium income generated from stock matching options as one of the sources of dividends for dividend stocks.
When the market rises sharply in the short term, the protective option operation strategy carried out by dividend funds may cause the fund to rise more slowly than funds of the same type or fund indicators.
The volatility of dividend funds is still the same as that of other stock funds and will not be reduced due to the operation of financial derivatives.
In addition, investors should pay attention to the investment risks that may arise from the operation of derivative instruments and this strategy (please read the fund prospectus or investor instructions for details).
The fund\’s dividend distribution rate does not represent the fund\’s return rate, and past dividend distribution rates do not represent future dividend distribution rates. Investors should pay attention to changes in the fund\’s net value when receiving dividends; the fund\’s net value may fluctuate due to market factors.
The relevant dividend distribution time shall be subject to the actual dividend distribution date notified by the fund management institution; the actual dividend payment account date shall be subject to the sales agency\’s operating hours.
Fixed income distribution type funds regularly distribute fund income to investors. Investors should understand that the dividends of different funds may be paid from the fund\’s income or principal depending on the date of their original investment.
Any disbursement of principal may result in a loss of the original investment amount.
The Fund does not deduct the related expenses that should be borne before distributing dividends.
There is a risk that some of the dividends may come from the principal because the interest income, dividend income, royalty income or other distributable income has not yet been recorded or there is insufficient payment of dividends in a short period of time.
The formula for calculating the annualized distribution rate of fund dividends is \”distribution amount per unit ÷ net value on the day before the ex-dividend date × number of dividend distributions in a year × 100%\” and the annualized distribution rate is an estimate.
The fund\’s dividend distribution item table has been disclosed on the Schroders website. Investors can check it at
Investors are reminded that dividend distribution is not fixed or guaranteed to make profits. The net value of dividend stocks will decrease after ex-dividends. Dividend distribution may affect the compound interest benefits of reinvestment.
Schroders Securities Investment Trust Co., Ltd. 9F, No. 108, Section 5, Xinyi Road, Xinyi District, Taipei City 11047 Tel: 02-27221868 (Customer Service Hotline: 02-87236888)

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