Schroders launches £4bn model portfolio business

Schroders launches £4bn model portfolio business

Schroders has launched an investment solutions business through which it will offer lower-cost model portfolios and multi-asset funds.

Schroder Investment Solutions will be overseen by Alex Funk, who has been named chief investment officer, with products becoming available on a range of platforms in May.

Funk said: “We are today bringing together the best of breed investment solutions. Financial advisers need to access a range of solutions at different risk profiles, price points and investment objectives and this is exactly what Schroder Investment Solutions offers.

“Working alongside Schroders' award-winning multi-asset team, with support from its sustainability and economic experts, as well as independent research from Rayner Spencer Mills Research, our focus will be on delivering investment returns for our clients.”

The MPS range will include Schroder Active, Strategic Index and Sustainable portfolios, offering an annual management charge of 15bps.

Each of these have between six and nine model portfolios spread across six risk ratings. An income model portfolio will also be available.

Schroder Investment Solutions will also include two ranges of multi-asset funds, the Schroder Tactical portfolios and the Schroder Blended portfolios.

The Tactical portfolios range will be capped at 29bps, and will enable access to a series of Schroders funds as well as lower-cost passive instruments where appropriate.

The Blended portfolios range, which is whole of market, have been rebranded from Schroder Portfolios and will be allocated to a mix of active and passive investments.

Doug Abbott, Schroders head of UK intermediary, said: “Financial advisers have been telling us they want to see an accessible range of low-cost funds and model portfolios available on a wide range of platforms, we will be delivering on this.

“Advisers will have access to a series of solutions that will offer the full range of risk and return profiles, different investment styles including fully active, blended active-passive and sustainable, which are designed to deliver value at a competitive cost.

“We are excited at the prospect of working closely with financial advisers to ensure that the investment objectives of their clients continue to be met with these new products.”