Schroders is today announcing the launch of the Schroder Dynamic Multi-Asset Fund (DMAF) created specifically as a lower cost, lower risk, alternative to passive defaults for DC pension funds. DMAF aims to achieve a target return of CPI + 4% pa net of fees (over a market cycle of typically 5 years), with half to two-thirds of global equity volatility at a cost (TER) capped at 50bps.
The Fund delivers significant investment diversification through actively managed allocations to core global equity strategies; as well as exposures to commodities, emerging market debt and global high yield. A further strategic allocation to fixed income will help manage volatility and downside risk.
The fund will be managed by Johanna Kyrklund, Head of Multi-Asset Investments at Schroders and the team of 60 multi-asset investment professionals globally. The multi-asset team currently manages over £34 billion for clients around the world.
Johanna Kyrklund, Head of Multi-Asset Investments, comments:
“Until now DC product development has lagged behind that of DB schemes, I am pleased that we have identified and created a low cost, low risk, diversified solution for the DC default option. The Schroder Dynamic Multi-Asset fund with its actively managed asset allocation provides diversification but at acceptable cost and risk levels for DC investors.”
Stephen Bowles, Head of DC, comments:
“Our research identified a clear need for a cost focused, objective based, lower risk, multi-asset investment to meet our clients specific DC requirements. Schroders Dynamic Multi-Asset Fund ticks all of those boxes.”
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