Schroders has expanded its multi-asset range with the launch of a total return fund targeting cash plus 4 per cent gross of fees.
The fund, to be managed by multi-asset head Johanna Kyrklund and team, will sit alongside existing products such as the firm’s Dynamic Multi Asset and Global Multi-Asset Income portfolios and have an ongoing charges figure of 0.8 per cent.
At a time when many investors are concerned over valuation levels, Schroders said it would seek to deliver stable returns and a low level of sensitivity to both bond and equity markets.
The strategy will invest in currencies, commodities and other alternatives, as well as equities and bonds, with allocations split into three buckets.
Return-seeking assets will target attractive performance on a one- to three-year time horizon, while risk-reducing assets will seek to protect against market falls, and a range of diversifiers aim to limit equity and bond correlations.
James Rainbow, co-head of intermediary at the asset manager, commented: “With interest rates falling to record lows and a persistently low yield environment, investors are in a difficult position when looking for stable returns.
“We have created an innovative solution that we believe is well placed to deliver.”