Schroders Files for Global Autocallable Income ETF Using Swaps

Schroders has filed to launch the Schroders Global Autocallable Basket Income ETF, an actively managed fund seeking monthly income through synthetic autocallable structured notes. The ETF will allocate at least 80% of its assets, measured by notional exposure, to total return swaps referencing multiple laddered portfolios, each generally containing 8 to 12 autocallable structures linked to U.S., international or global equity baskets. Coupon payments depend on the worst-performing index or ETF in each basket meeting predefined barriers, with a memory feature allowing missed coupons to accumulate for potential later payment. Structures may automatically redeem when performance thresholds are met. Downside protection is limited, with potential significant losses if maturity barriers are breached. Schroders will manage portfolio exposures and counterparty risks.