Schroders is changing the name and investment objective of the £330m Monthly High Income fund.
The fund is being renamed as the Schroder High Yield Opportunities fund and the investment objective will include capital growth, while still focusing on income.
In a letter to investors, director Robin Stoakley says: “We believe the change of name better reflects the asset class that the fund invests in (high yield) and the investment style adopted by the fund manager (unconstrained total return).
“While the fund’s focus is on producing a sustainable level of income from investment in higher yielding corporate bonds, it has always sought to provide some capital growth, and we now wish to make that clear in the objective.”
The investment process will remain unchanged and the fund will continue to pay income monthly. However the risk profile of the fund is being upgraded from low-to-medium risk to medium risk.
The changes take effect on 17 February.
Michael Scott has run the fund since August 2012. Over three years the fund has returned 22.5 per cent compared to the 10.9 per cent average of the IA Sterling High Yield fund, FE data shows.