The new fund aims to offer investors access to long-term capital growth while using derivatives and other instruments to lower the targeted volatility against returns.
Nicholette MacDonald-Brown, senior portfolio manager on the European Equities team will manage the fund, said Schroder.
The fund manager will invest the amount in fundamental stock selection (40 to 60 stocks) with lower volatility by adjusting the fund’s exposure to the market through the planned use of cash, futures and derivatives.
European Equities head Rory Bateman said the product offers a solution as it enables investors to retain exposure to our successful fundamental stock picking track record within a fund that will have the ability to utilize a variety of instruments to lower the overall volatility of those returns.
As on 30 September 2011, Schroders owned £182.2bn ($283.9bn) of assets under management and runs its operations in 25 countries across Europe, the US, Asia and the Middle East.
