Schroders launches Global Multi-Asset Fund for UK investors

Schroders is launching a global multi-asset income fund to offer more flexibility and choice for those investors seeking income as they approach and go into retirement.

The fund is due to launch on 19th December 2014. It will adopt the same investment strategy as the existing Luxembourg fund, Schroder ISF Global Multi-Asset Income, which has assets under management of £4.0bn.

The Schroder Global Multi-Asset Income Fund will be managed by the Multi-Asset team, who currently manage the offshore version of the fund. The team consists of over 100 investment professionals worldwide who currently manage over £60bn in assets across a number of global strategies, including £6.8bn in income strategies.

The fund aims to deliver regular sustainable income payments and superior risk adjusted returns. It targets a distribution payment of 4-6% (not guaranteed) per annum in monthly instalments and will target a total return of 7% (not guaranteed) per annum with a target volatility between 5-7% p.a. with a maximum of 10% p.a. The investment strategy focuses on investing in high yielding and high quality global fixed income and global equity securities.

Robin Stoakley, Managing Director UK Intermediary said: “The pension reforms announced by the government in the 2014 budget will mean an increase in choice and flexibility for those approaching retirement. The proposed changes also highlight investors’ need for solutions which generate levels of income above current cash returns and offer the potential to protect and grow capital. We believe the Schroder Global Multi-Asset Income Fund is ideally suited to meet the needs of these investors. The distribution yield will be attractive to those investors seeking consistent income, whilst its multi-asset approach provides greater diversification than is typically available from conventional bond, equity or balanced mandates.”