Schroders intends to add further funds to the Ucits III-compliant multi-manager fund range it has developed with fund research and rating agency Standard & Poor's.
The alliance between the companies has already brought two new funds to the UK market following similar jointly branded launches in Asia and Luxemburg.
The Schroder S&P high alpha fund is an aggressively managed fund which aims to outperform the Lipper active managed sector by 3 per cent a year after charges. Under the Ucits III rules, it can invest up to 10 per cent in alternative investments such as hedge funds, private equity and property.
The Schroder S&P strategic balanced fund is more conservative and will focus mainly on bonds, equities and cash. It aims to outperform the Lipper balanced managed sector by 2 per cent a year after charges. Both funds will contain between 12 and 15 funds from managers such as Isis, New Star and Merrill Lynch.
S&P monitors over 100,000 funds and writes detailed reports on the best 1,200 of these by sector. Although its research is widely available to other investment houses, it will provide an exclusive service to Schroders. This will involve the production of a short list of 200 funds specifically for the Schroders multi-manager team, who will combine the information with in-house research.
Schroders head of UK multi-manager Andrew Yeadon says: “We chose Standard & Poor's because they have more resources in this area than anyone else and have a lot of experience.
“We have started with two vehicles which we felt would have the most appeal but the intention is to develop the fund range and our relationship with S&P further.”