schroders launches european total return fund

Schroders is launching a European Total Return Fund for new recruit Nicholette MacDonald-Brown aiming to offer investors access to long-term capital growth in the region with lower targeted volatility.

schroders launches european total return fund


Aimed for launch on 7 March, MacDonald-Brown, senior portfolio manager on the European equities team, will be the lead manager of the Luxembourg-domiciled fund.

She will select and hold between 40 to 60 stocks in a bid to generate returns, but will aim to adjust the fund’s volatility and exposure to the market through the tactical use of cash, futures and derivatives.

MacDonald-Brown will be supported by a team of dedicated stock pickers whom also work on the Schroder ISF European Large Cap, which over three years has returned 48.8% against 44.6% from the benchmark, according to the firm.

Prior to joining Schroders in August last year, MacDonald-Brown spent 11 years at Goldman Sachs, most recently working for Goldman Sachs Investment Partners, a global multi-asset hedge fund.

This is the first fund at Schroders she has been the named lead manager.

Rory Bateman, head of European equities at the company, said: "Given the volatility across European markets we have seen an increasing demand for a European equities product with the ability to limit non-stock specific risk. This product offers a solution as it enables investors to retain exposure to our successful fundamental stock picking track record within a fund that will have the ability to utilise a variety of instruments to lower the overall volatility of those returns."

MacDonald Brown added that the fund would aim to deliver returns in excess of the broader European market over the cycle.


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