Schroders has announced the launch of its Emerging Multi-Asset Income fund, which is designed to primarily invest in emerging markets.
The launch comes in response to client demand, the manager said, particularly for those seeking to diversify and manage risk.
The portfolio will be managed by the same team running the Schroder ISF Global Multi-Asset Income fund, which has some €5.8bn of assets under management.
Aymeric Forest and Iain Cunningham head the team of some 100. They will target an annual distribution of 5%-6%, using dynamic asset allocation and risk management. Currently the Multi-Asset team manages some €106.8bn for clients globally.
Carlo Trabattoni, head of Pan-European Intermediary Business at Schroders, said: “The launch of the new fund will offer clients multi-asset diversification benefits within emerging markets. Although emerging markets have experienced recent headwinds, it allows investors with a medium to long term outlook to seek opportunities in some of the fastest growing economies in the world.”
Aymeric Forest, head of Multi-Asset Europe and fund manager, said: “We’re very pleased to announce the launch of the new fund. Investors need to be more selective in the current environment among countries and assets. Exchange rates need to be actively managed, as a local bond or equity market may appreciate in price whilst the local currency can depreciate. A multi-asset approach can use the dispersion in asset prices created by diverging monetary and economic cycles among emerging market countries and offer potentially lower drawdown risks compared to single asset classes”