Schroders to add third low-cost fund to range

23 June 2011 4:43 pm | By Chris Salih

Schroders is adding a third low-cost fund designed as an alternative to passive investing in anticipation of the RDR.

The Schroder dynamic multi-asset fund will be made available to investors from the start of August under the management of head of multi-asset investment Johanna Kyrklund.

The fund is being branched out of its existing unit trust offering, the Schroder diversified target return fund, with the D class being made available to retail investors with a capped total expense ratio of 50 basis points, including an annual management charge of 45 basis points.

The Schroder diversified multi-asset fund will target a return of CPI+4 per cent per annum net of fees over a market cycle. In addition to global core equities, the fund will invest in the likes of commodities, emerging market debt and global high yield. An allocation to fixed income will also be introduced to manage volatility and risk.

Schroders managing director of UK intermediary Robin Stoakley says: “There is an enormous demand for multi-asset products and we felt this made sense as we can offer a competitively priced, sensibly structured multi-asset fund to meet both personal investment demand for advisers and the significant demand in the defined contribution pension market.

“We want to offer a competitive return with CPI+4 per cent over a five year cycle but with less volatility than one would get from a traditional fund. CPI+4 tends to equate to a 6-7 per cent return, which is what many would expect from a long-term equity return. We want a typical equity style return with lower equity volatility.”

Schroders kicked off its low cost range with the launch of its UK core and QEP global core offerings in March.

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