Schroders is aiming for the retail multi-manager market with an IFA version of the fund of funds operation it runs with Standard & Poor's.
Schroders, which runs around £547m through its internal Fof arm, plans to launch a balanced managed and an alpha managed product in the fourth quarter as it seeks to diversify away from single-strategy funds.
As with the existing business, the retail operation will carry the brands of both Schroders and S&P, which will identify suitable funds for head of multi-manager investment Andrew Yeadon.
Each of the new Fofs will have around 15 holdings, including private equity, property, offshore and long-short funds. The balanced managed product will have a 4-5 per cent tracking error while the alpha managed Fof, which will not be subject to any risk constraints, will seek to beat its peer group average by 3 per cent.
Schroders says it intends to grow the operation organically, but admits it would be interested in acquiring assets if the right deal came along. It is trying to expand its multi-manager team from four to seven with an emphasis on recruiting managers specialising in the US, UK and Europe.
Head of UK retail Robin Stoakley says: “We are taking a fiveto seven-year view on this. We know no one comes into the market and takes it over but we believe we have the resources, infrastructure and skills to offer the best product.”