SDBNX — Schroder Short Duration Bond Fund

SDBNX Fund Overview

SDBNX — Schroder Short Duration Bond Fund is a US mutual fund managed by Schroder Series Trust, categorised as Short Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Schroder Series Trust
• Category: Short Bond
• Assets under management: $16.40M
• Ticker: SDBNX
• SEC CIK: 0000908802
• SEC series ID: S000050444
• Share class ID: C000159244

SDBNX Investment Objective and Strategy

Schroder Short Duration Bond Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Schroder Series Trust.

Investment objective

The Fund seeks long-term total return consistent with the preservation of capital.

Principal investment strategy

"The Fund seeks to achieve its investment objective by investing primarily in a portfolio of U.S. dollar-denominated, investment grade fixed income securities. The Fund's total return includes income earned on the Fund's investments, plus capital appreciation, if any. Fixed income securities in which the Fund may invest include obligations of governments, government agencies or instrumentalities, supra-national issuers, or corporate issuers. They may pay fixed, variable, or floating interest rates and may include asset-backed securities, mortgage-backed securities (which may include ""to be announced"" (""TBA"") transactions), zero-coupon securities, convertible securities, inflation-indexed bonds, structured notes, bank loans, loan participations, loan assignments, municipal securities, and other securities bearing fixed or variable interest rates of any maturity.

""Investment-grade"" securities are securities that are rated by at least one major rating agency in one of its top four rating categories, or, if unrated, that are determined by Schroders to be of similar quality, at the time of purchase. In the case of a split rated security (that is, two or more rating agencies give a security different ratings), the highest rating shall apply. The Fund may invest without limit in U.S. dollar denominated foreign securities, but will normally invest no more than 20% of its total assets in securities that are not denominated in the U.S. dollar. The Fund may also invest a portion of its assets in cash and cash equivalents. The Fund normally invests at least 80% of its net assets, plus the amount of any borrowing for investment purposes, in fixed income securities.

This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders. In addition, the Fund may invest up to 30% of its net assets in securities that are rated below investment grade (commonly known as ""high yield securities"" or ""junk bonds""), or are unrated securities that Schroders determines are of comparable quality. At times, the Fund's investments in municipal securities may be substantial depending on Schroders' outlook on the market. While the Fund may invest in fixed income securities of any maturity or duration, under normal market conditions, Schroders seeks to maintain an average effective portfolio duration that is within +/- 1 year of the average effective duration of the Fund's benchmark, the BofA Merrill Lynch 1-3 Year Treasury Bond Index, on an adjusted basis.

Schroders generally adjusts the duration of tax-exempt municipal bonds by a factor (currently 0.7) to reflect its view that their prices are typically less sensitive to changes in interest rates than taxable securities. Duration is a measure of a debt security's price sensitivity to a given change in interest rates; effective duration is a measure of the Fund's portfolio duration adjusted for the anticipated effect of interest rate changes on pre-payment rates. Generally, the higher a debt security's duration, the greater its price sensitivity to a change in interest rates. In contrast to duration, maturity measures only the time until final payment is due. Schroders' decision to purchase or sell a security or make investments in a particular sector is based on relative value considerations.

In analyzing the relative attractiveness of a particular security or sector, Schroders assesses an issue's historical relationships to other bonds, technical factors including supply and demand and fundamental risk and reward relationships. When making decisions to purchase or sell a security, Schroders also considers a number of factors including sector exposures, interest rate duration, yield and the relationship between yields and maturity dates. Schroders may engage actively in transactions involving derivatives in managing the Fund. Derivative transactions may include exchange-traded or over-the-counter derivatives, such as swap contracts including interest rate swaps, total return swaps, and credit default swaps, and futures contracts and options on futures (typically for the purposes of interest rate or other risk management or as a substitute for direct investment), and foreign currency exchange transactions, including currency futures, forwards, and option transactions (typically to hedge against changes in the values of currencies in which investments are denominated).

The notional value of the Fund's investments in derivatives that provide exposure comparable, in the judgment of the Adviser, to investments in fixed income securities may be counted toward satisfaction of the 80% policy described above. The Fund may engage in active and frequent trading of portfolio securities in seeking to achieve its investment objective."

SDBNX Costs and Fees

SDBNX costs about $47 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.47%
• Gross expense ratio: 2.16%
• Portfolio turnover: 100%
• Brokerage commissions: 0.22 bps of average net assets (SEC N-CEN)

SDBNX Cashflows

Over the 12 months to 2019-10, Schroder Short Duration Bond Fund had net inflows of $115.44K, from monthly SEC N-PORT filings.

SDBNX Debt Constituents

No individual debt constituents are reported in Schroder Short Duration Bond Fund's latest SEC N-PORT filing.

SDBNX Prospectus and SEC Filings

Official Schroder Short Duration Bond Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2019-03-20
• Prospectus (485BPOS) — filed 2018-03-19
• Prospectus (485BPOS) — filed 2017-03-21
• Portfolio holdings (N-PORT) — filed 2019-12-19
• Annual census (N-CEN) — filed 2020-01-14
• Annual census (N-CEN) — filed 2019-01-14

Related Funds

Other Short Bond funds tracked on ABC INVEST:

• Lord Abbett Diversification Shares: Short Duration Completion Fund (LASDX)
• Sound Fixed Income ETF (SDFI)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.