Schroders launches two fund solutions for income and wealth preservation
Schroders has launched two US mutual funds as part of its commitment to offer investors a broader set of global solutions.
The Schroder Global Multi-Asset Income Fund (GMAI) is a diversified portfolio that seeks to maximise income and manage volatility by investing directly into both equities and fixed income securities around the globe. GMAI offers investors the potential to fulfil a broad range of goals, risk reduction and income both in and out of retirement.
The Schroder Global Strategic Bond Fund is an actively managed portfolio with the flexibility to invest in the best opportunities throughout the fixed income universe. The fund offers investors the potential for total return in different market environments--including periods of rising rates.
With the addition of these new funds, Schroders has grown its family to 15 different mutual funds.
"As a leading global asset manager, we are dedicated to providing solutions to address a variety of needs, and we are always looking for ways to expand our product availability in the US," says Karl Dasher, CEO of Schroder Investment Management North America and co-head of fixed income. "We have been in steady growth mode in the US, and we believe these two funds offer a differentiated approach to the growing need for diversified investment income. This brings our stable of income-oriented mutual funds to 7, each with a unique value proposition and role in client portfolios. We are committed to being a partner of choice to advisors and their clients in the provision of income solutions."
The Global Multi-Asset Income Fund seeks to generate an attractive level of income on a sustainable basis through security selection and dynamic asset allocation, while seeking to deliver capital growth over the medium to longer term. The fund's benchmark is unconstrained which enables the team to be flexible in its search for the best risk-adjusted income opportunities across regions, asset classes and sectors. The fund will be well diversified and invested directly into equity and fixed income securities, while focusing on high quality companies with positive cash flow and strong balance sheets. There is also a strong focus on risk management at both the security and portfolio level, in seeking to minimise the volatility of investor capital.
The fund's portfolio managers draw on the expertise of over 100 investment professionals in the multi-asset team who manage USD91 billion for clients around the world as of 31 March 2014. The fund is the US version of a substantially similar fund managed by Schroders for non-US investors, which recently marked its two-year anniversary after delivering on its objectives since inception and has USD5 billion in assets under management with investors across Asia, Europe, Latin America and the Middle East as of 13 June 2014.
"Our risk management approach and focus on the sustainability of income seeks to cushion the gradual phasing-out of the Federal Reserve's tapering and raising of rates," said Nicolaas Marais, head of multi-asset investments and portfolio solutions for Schroders. "One of our key goals is to offer a strategy that not only works when rates are low, but also seeks to outperform traditional income investments when rates begin to rise. We believe we can provide a more attractive yield, return, and risk profile, than single asset class income funds. This is a true outcome-oriented solution for investors.
"What we're trying to do is to reach an income level that's attractive to investors, but also backstop that with both capital protection and an opportunity for capital appreciation.”
The Global Strategic Bond Fund aims to seek out the best opportunities in global bond markets and provide the greatest investment potential. The fund enables investors to invest tactically and strategically across the whole spectrum of global fixed income sectors, regions, asset classes and FX.
“We believe this provides a market rich opportunity for alpha generation. It is essentially a multi-sector fixed income product with a twist--and the twist is that the strategy aims to avoid any directional bias to generate a positive return in any market environment over the long term. "That means the product is designed to generate a positive return whether interest rates rise or fall, or whether credit spreads narrow or widen," says Bob Jolly, head of global macro for Schroders and lead portfolio manager. "The goal is to build a portfolio that is diversified in terms of alpha sources and investment horizon."
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