--- title: "Schroders files a global autocallable ETF and leaves the swap cost out" url: "https://etf.net/news/autocallable-etf-filing-omits-swap-cost-2026-11-09" published_at: "2026-11-09T13:07:05.171Z" updated_at: "2026-11-09T13:07:05.171Z" byline: "ETF.net Research" --- # Schroders files a global autocallable ETF and leaves the swap cost out Schroders' Nov. 6, 2026 filing would tie payouts to the weakest name in a basket, and the shares cannot be sold yet. By ETF.net Research. Published Nov 9, 2026. On Nov. 6, 2026, Advisors' Inner Circle Fund III filed a preliminary prospectus for a fund that does not yet exist, the Schroders Global Autocallable Basket Income ETF. The management fee is a stated **0.75%**. The [prospectus](https://www.sec.gov/Archives/edgar/data/1593547/000139834426019724/fp0101678-1_485apos.htm) says fees the fund would pay swap counterparties are expected to reduce returns, and that those fees are not in the fee table. The shares may not be sold until the registration statement is effective. The filing sets that date at Jan. 20, 2027, 75 days after it was filed. The fund has not said it will start trading then. The proposed ticker is still in brackets, as GABI, and the listing exchange is NYSE Arca. Schroder Investment Management North America LLC would be the adviser. Schroder Investment Management North America Limited, an affiliate with its office in London, would be the sub-adviser and would run the portfolio day to day. Marcus Durell, head of foreign exchange, index and equity derivative investments at Schroders, would manage it with Mallory Timmermans and Gordon Harpur. ## A ladder of synthetic notes An autocallable note can pay a coupon, and can be called early, if a market level holds up. It can also cut into principal if that level is too low at maturity. This fund would not buy the notes. It would seek monthly income by using swaps to copy a ladder of synthetic ones, which the prospectus calls autocallable structures, tied to baskets of U.S., international or global stock indices, ETFs, or both. The swaps would be unfunded. The fund would not pay the notional amount up front. At maturity, it and the counterparty would exchange a payment based on the ladder's return, net of financing costs. To post collateral, the prospectus says the fund may hold U.S. government securities, money market funds, and cash. It also says unfunded swaps may bring more leverage risk than funded ones. Under normal conditions the fund would put at least 80% of net assets, plus any borrowings for investment purposes, into those swaps, counting each swap at its notional value. Each ladder would generally hold 8 to 12 structures with staggered dates, all tied to the same basket. The prospectus says several ladders, each on a different basket, are meant to spread that exposure. ## The worst name in the basket The return of each structure depends on the worst index or ETF in its basket. One laggard can decide the coupon, an early call, and what is left at maturity, even if the rest of the basket is fine. A terms table in the prospectus is labeled illustrative. It shows a three-year maturity and a put strike at 75% of the starting level. If the worst index or ETF is still at or above that strike at maturity, a decline does not cut that structure's settlement value below its principal. If that index or ETF finishes below the strike, the settlement value is reduced by the decline below the strike, multiplied by a risk factor the table puts at 133.33%. The prospectus says that factor is 1 divided by the put strike, and the table rounds it to 133.33%. It says the fund could lose that structure's entire initial notional amount. The illustrative U.S. basket is the S&P 500, the Nasdaq 100 and the Russell 2000. The table also shows an international basket and a global one. The coupon barrier starts at the starting level and steps down to 75%. If the worst index or ETF is below that barrier on an observation date, the prospectus says the coupon for that period is not paid. Distributions are intended to be monthly, can vary, and may include a return of capital. ## What 0.75% leaves out The prospectus calls the 0.75% a unitary management fee, designed to pay the fund's expenses and to compensate the adviser. Other expenses and the total annual operating expense line are still in brackets, shown as 0.00% and 0.75%. The footnote says fees payable to swap counterparties are expected to reduce returns under the swaps, and that those fees are not in the table. ## Funds already on the market Schroders already runs a U.S. autocallable ETF. The Schroders US Autocallable Ladder Income ETF SALI has an inception date of Sept. 14, 2026. Its [Sept. 10, 2026 prospectus](https://www.sec.gov/Archives/edgar/data/1593547/000139834426016872/fp0099979-3_485bposixbrl.htm) seeks the same monthly-income goal through the Bloomberg Schroders US Large Cap Autocallable Index. That prospectus lists a 0.74% management fee and net expenses of 0.65% after a waiver through Nov. 30, 2027. Listed autocallable funds already include a large one. [Calamos](https://www.calamos.com/funds/etf/calamos-autocallable-income-caie) reported $1.4 billion in the Calamos Autocallable Income ETF CAIE as of Nov. 6, 2026. On Oct. 26, 2026, [it launched](https://www.calamos.com/about/news/press-releases/2026/calamos-extends-autocallable-leadership-through-cayn) the Calamos Least-Of Autocallable Income ETF CAYN, which ties income and principal to the weakest of three ETFs: the SPDR S&P 500 ETF Trust SPY, the Invesco QQQ Trust QQQ and the iShares Russell 2000 ETF IWM. Chart: CAIE is **$1.4 billion**; SALI and CAYN are far smaller [Calamos](https://www.calamos.com/funds/etf/calamos-least-of-autocallable-income-cayn) lists a 0.74% net expense ratio for that fund, and a 0.86% gross expense ratio, from a prospectus dated Oct. 14, 2026. The Schroders 0.75% is a management fee, and the swap fees sit outside it. ## Brown Advisory's fee is still blank The same trust filed a [second preliminary prospectus](https://www.sec.gov/Archives/edgar/data/1593547/000139834426019704/fp0101589-1_485apos.htm) that day, for the Brown Advisory Small-Mid Cap Core ETF. The ticker is still [XX], the exchange is still in brackets, and every fee line is a placeholder. Those shares cannot be sold yet either. The fund would buy U.S. small- and mid-cap stocks in the Russell 2500's market-cap range. [iShares](https://www.ishares.com/us/products/288024/ishares-russell-2500-etf-fund) reported $4.1 billion in the iShares Russell 2500 ETF SMMD as of Nov. 6, 2026, and lists a 0.15% net expense ratio. Brown Advisory has not said what it would charge to pick stocks in that range. Source: etf.net, https://etf.net/news/autocallable-etf-filing-omits-swap-cost-2026-11-09. Please cite the page URL.