Schroders is to offer a diversified target return fund investing in 15 to 20 asset classes.
The fund will be managed by the firm’s UK multi-asset team, with Johanna Kyrklund as lead manager. It is based on the success of the company’s diversified growth fund, an institutional offering which has taken £1.4bn since launch in May 2006. Kyrklund joined Schroders from Insight Investments in March 2007 and co-manages the diversified growth offering.
The new fund is set for launch on May 2 and will target Libor plus 4 per cent gross of fees over a five-year span. It will generally use collective investment schemes but will also make use of the likes of transferable securities, investment trusts and derivatives.
At launch, the hybrid fund will invest in 20 to 25 underlying holdings across all the asset classes, with 70 per cent from internal Schroders’ offerings. The fund will closely match up with the insti-tutional offering. Initial charge is 5.25 per cent and annual 1.5 per cent.
Head of UK retail sales Neil Bridge says: “This fund has been well received already, given the strong demand for the institutional version, and it sits well within our other managed offerings and multi-manager range.”