Schroders is launching the Schroder Dynamic Multi-Asset Fund (DMAF), for customers with an active alternative to passive investing.
Schroder DMAF is a reconstruction of an existing Schroder fund, the Schroder Diversified Target Return Fund and will available to investors at the beginning of August.
The fund’s D unit class, which will be offered to investors via platforms, will have a total expense ratio capped at 0.5 per cent.
Schroder DMAF aims to achieve a target return of CPI plus four per cent per annum net of fees over a market cycle (typically five years) with half to two thirds of global equity volatility.
The fund aims to do this through allocation to core global equity strategies, diversification through exposure to commodities, emerging market debt and global high yield, strategic allocation to fixed income to manage volatility and downside risk, and by actively managed asset allocation.
The fund will be managed by Johanna Kyrklund, who will take input from more than 60 investment specialists from around the world.
She said, ‘At a time when investors are torn between confidence in the global economic recovery, concern about European sovereign debt, the potential impact of tensions in the Middle East and North Africa, and the devastating earthquake in Japan, the ability to diversify investments across a number of asset classes is very reassuring.
‘The Schroder Dynamic Multi-Asset fund with its active asset allocation process provides this diversity.’