Schroders Investment Solutions (SIS) has launched a Managed Defensive Fund as part of its low-cost model portfolios and multi-asset funds.
The fund, which is targeted at cautious investors that still want to benefit from stock market exposure, will be managed by Schroders chief investment officer and global multi-asset boss Johanna Kyrklund.
In addition, the company has said it will restructure and rename the existing Schroders Multi-Manager Diversity Income fund to the Schroder Income portfolio, which will fall under the SIS umbrella.
This fund will be managed by Alex Funk (pictured), the chief investment officer of SIS.
SIS was unveiled earlier this year and has seen an uptick in demand from advisers for a fund for cautious investors and an income fund.
Gillian Hepburn (pictured), Schroders head of UK intermediary solutions, said: “The addition of the Managed Defensive Fund will be a welcome option for investors who have the ability to take some market risk, particularly against a backdrop of increasing inflation.
“As an industry we need to continue to demonstrate the benefits of investing and these new funds, in addition to the existing solutions, which offer a full range of risk profiles and investment styles at a competitive cost, can continue to support client outcomes.”
See also: Can Schroders tempt advisers away from DFMs with low-cost MPS range?
As part of Schroders focus on offering a simplified proposition to the UK adviser market, several Multi-Manager Diversity funds will be merged into other Schroder funds available at a lower cost.
Last month, it was announced that Graham Ashby and Duncan Green have been appointed to run the newly named Schroder UK Multi-Cap Income Fund, formerly the Schroder Multi-Manager UK Growth fund.
The Multi-Manager Diversity Fund remains unchanged in both management and process. It has outperformed its target (UK CPI) for the year-to-date, over one year and since inception.
It has also outperformed its peer group and IA Mixed Investment 20-60% Shares sector over one and three years, as well as since launch, according to data from Refinitiv Lipper IM.
The fund will continue to be managed by Robin McDonald, Joe Le Jéhan and Geoff Challinor.
