Schroders has launched a multi-asset total return fund, which will be run by the firm's global head of multi-asset investments Johanna Kyrklund and her team.
The Multi-Asset Total Return fund aims to provide stable returns with low correlations to equity and bond markets. More specifically, it will target a return of 4% per annum over a rolling three-year period.
It can invest across an array of asset classes including equities, bonds, currencies and commodities.
During the investment process, the multi-asset team will start with an assessment of which asset classes are attractively valued according to the stage of the economic cycle, taking a one to three-year view.
The team then construct forward-looking scenarios to help identify what assets they expect to perform in the event of short term market volatility and therefore help to protect the portfolio from market falls.
Kyrklund (pictured), who has worked at Schroders for more than 10 years, was promoted to head the multi-asset team in 2016.
Schroders co-head of UK intermediary James Rainbow said: "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 which we believe is well placed to deliver long-term performance across a range of market conditions and aims to help investors achieve stable returns with considerably lower volatility."
The fund has an ongoing charge of 80 basis points and minimum investment is £5,000.
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