Schroders has launched a low volatility multi-asset fund with a target of preserving and growing savings under all economic conditions.
The Schroder ISF Wealth Preservation fund is run by Malcolm Melville, who will have flexibility to invest in equities, bonds, currencies and cash.
The investment process, which involves analysts and managers visiting different countries and then deciding whether to invest or remain in cash, is the one used on the group’s €4 billion Schroder ISF Emerging Markets Debt Absolute Return fund, headed up by Geoff Blanning which has returned 18.4% over the five years to the end of December.
The fund is dollar denominated and targeted at high net worth individuals and retail investors in the UK and overseas.
Melville told New Model Adviser® sister publication Citywire Global: 'It is very simple, has no leverage and no complex derivatives. In terms of equities we have launched with our biggest overweight to Japanese equities, which have been out of favour for some time. All our positions are small, and we can only add to them if they are making money. There are also some selective Asian equities and some German and UK positions.'