The offering, to be managed by Schroders head of multi-asset investments Johanna Kyrklund, is a reconstructing of the existing Schroder Diversified Target Return Fund and aims to achieve a return of CPI + 4% per annum net of fees over the course of a market cycle.
Set for launch in August, the fund’s D unit class will have a total expense ratio capped at 50bps.
The fund aims to achieve its target return with “half to two thirds” of global equity volatility via a significant allocation to global equity strategies, diversification via exposure to commodities, EM debt and global high yield, and a strategic allocation to fixed income as well as an actively managed asset allocation.
“We believe that actively managed funds with strong asset allocation processes like Schroder Dynamic Multi-Asset are a great alternative to passive funds which simply allocate assets according to size and are destined to underperform,” said Schroders’ managing director UK intermediary, Robin Stoakley.
