Schroders launches European Equities Total Return fund

Schroders announces the launch of Schroder ISF European Total Return, a European equity product that aims to offer investors access to long-term capital growth while using derivatives and other instruments to lower the targeted volatility of those returns.

The fund, which is launching on 7 March, will be managed by Nicholette MacDonald-Brown, Senior Portfolio Manager on the European Equities team. She will seek to achieve returns through fundamental stock selection (40 to 60 stocks) but with lower volatility by adjusting the fund's exposure to the market through the tactical use of cash, futures and derivatives. Nicholette will be supported by a team of dedicated stock pickers with a strong track record of delivering alpha over the long term (the flagship team based pan-European Fund, Schroder ISF European Large Cap, has returned 48.4% against the benchmark 44.6% over three years).

Rory Bateman, Head of European Equities, commented: "Given the volatility across European markets, we have seen 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."

Nicholette MacDonald-Brown, Senior Portfolio Manager, also commented: "At its heart this is a stock picking fund which also gives us the ability to alter our exposure to the market. Over the cycle we are looking to deliver returns in excess of the broader European market whilst targeting a degree of protection against significant short-term fluctuations in markets."