Investment - Articles - Schroders Video: Schroders' flagship Diversified Growth fund

 In the latest Multi-Asset video from Schroders, the team provides an update on Schroders' flagship £4.2bn Diversified Growth Fund, taking a long term view.

  

 To view the video click here.

  

 Johanna Kyrklund, Head of Multi-Asset Investments:
 “We target about two-thirds of the volatility of equities - the Diversified Growth Fund is an equity replacement strategy, targeting equity-like returns, with lower volatility.”
 
 We aim to achieve this in three ways, by:

  

 -investing in a very diversified range of assets

 -using dynamic asset allocation to take advantage of key opportunities

 -accessing asset classes either passively or actively through open architecture

  

 Economic View: Keith Wade

  

 -Global inflation continues to be driven by the rise in commodity prices, particularly oil. This is a particular problem for the emerging economies.

  

 -We think that inflation could continue to be a problem in the UK, and that the Bank of England will eventually have to raise interest rates to counter this.

  

 -We believe that the recovery phase of this economic cycle is likely to be significantly extended for the developed economies since this has been the longest and deepest recession since the Second World War.

  

 Risk Management: Nico Marais, Head of Multi-Asset Investments and Portfolio Solutions

  

 It is also important to appreciate how we understand and manage risk within the Multi-Asset team when dealing with very different asset classes. It is crucial to understand:

  

 -the risk embedded in each of these asset classes

 -the overall downside risk to your portfolio

 -the overall exposures of our clients' portfolios