Schroder High Yield Opportunities Z

Value added via sector and stock selection.

  • 52.34p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 93.99p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.63%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.82%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 6.20%

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 19 January 2021

This fund employs a hybrid portfolio with typically 40% in sub-investment grade bonds to provide a high level of monthly income. Returns have been mainly delivered through sector and stock selection.

Fund summary

Sector £ High Yield
Structure UNIT TRUST
Launched May, 2012
Size £455m
Yield 6.20%
Charging basis Capital
Dividends paid Monthly


Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.63%
Ongoing charges figure 0.82%


Proportion (%)

  • {{chartDataItem.text}}


Proportion (%)

  • {{chartDataItem.text}}


Proportion (%)

  • {{chartDataItem.text}}

Investment process

The fund holds a diversified portfolio of mainly UK corporate bonds and aims to provide a high level of income which is distributed monthly. Although the fund predominately invests in lower rated investment grade bonds, to improve the yield, a significant proportion of the portfolio may be invested in sub-investment grade stocks (rating below BBB) along with emerging markets, although overseas currency exposure is normally fully hedged. The split between high quality and high-yield stocks is not rigid and this allocation will be actively managed. The fund benefits from the 40 member strong global fixed interest desk at Schroders who carefully monitor the financial prospects of the issuers of the bonds held in the portfolio in order to establish their credit worthiness.

Manager research

Average monthly relative returns

  • 16/17 0.10%
  • 17/18 0.34%
  • 18/19 -0.31%
  • 19/20 0.15%
  • 20/21 0.09%

Bestinvest MRI

  • 3 years -0.02%
  • 5 years 0.08%
  • Career 0.07%
  • 3 years 53.20%
  • 5 years 64.80%
  • Career 71.90%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Michael Scott/Konstantin Leidman

Scott joined Schroders in 2006 as a European Industrials credit analyst before becoming an investment manager in 2010. Scott began his investment career in 2005 at Cazenove. Scott has a BA (Hons) in Geography from Oxford University and is a CFA Charterholder. Leidman joined Schroders in 2012 from UBS. He joined UBS in 2004 initially as a credit risk analyst before becoming a Portfolio Manager in 2006. Prior to this Leidman worked as a analyst at M&G. Leidman is a CFA Charterholder and has a MBA from London Business School.

Track record

Michael Scott/Konstantin Leidman has 8.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.07%. During the worst period of relative performance (from January 2018 - March 2020) there was a decline of 23% relative to the index. The worst absolute loss has been 22%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 72%.

Periods of worst performance

Absolute -22.00% (January 2020 - March 2020)
Relative -23.00% (January 2018 - March 2020)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.


Proportion (%)

  • {{chartDataItem.text}}


Proportion (%)

  • {{chartDataItem.text}}


Proportion (%)

  • {{chartDataItem.text}}

Top 10 holdings

Data accurate as at 31 July 2020

2.27% Almaviva Spa 7.25% Bds 15/10/22 Eur100000
2.14% Saga Plc 3.375% Nts 12/05/24 Gbp100000
1.85% Algeco Scotsman Global Finance Plc 6.5% Bds 15/02/23 Eur100000reg S
1.84% Banca Ifis Spa 4.5000 17/10/2027 Regs
1.71% Energy Transfer Partners Lp 6.25% Undated Frn Usd1000
1.63% Metro Bank Plc 5.5% Rst Call Sub Nts 26/06/28 Gbp100000
1.62% Heimstaden Bostad Ab 3.2480 Perp - Regs
1.61% Tele Columbus Ag 3.8750 01/05/2025 Series
1.49% Ithaca Energy North Sea Plc 9.375% Bds 15/07/24 Usd200000
1.46% Sainsburys Bank Plc 6% Sub Nts 23/11/27 Gbp100000
Source: Trustnet

Sector breakdown

Industrials 60.00%
Financials 35.00%
Utilities 4.00%
Mortgage & Secured Bonds 4.00%
Money Market 2.00%


There are typically 80-100 holdings in the portfolio.


The minimum exposure to non investment grade issues is 20% although at times this could be as much as 50% and the maximum exposure to emerging market debt would be 5%.

Key Investor Information - Income


Key Investor Information - Accumulation