Schroders, the London-based investment manager, has strengthened its liability driven investment and UK strategic solutions teams with four new senior appointments. In addition, Schroders has launched a second fund in its Retail Distribution Review-friendly active range.

Joining Schroders' LDI and strategic solutions team are: Mike Hodgson, latterly at RBS, as head of structuring; Kathleen Broekhof from HSBC Global Asset Management for the role of LDI solutions manager; Dianne Ramsay, most recently at Financial Strategy Group, as part of the UK strategic solutions team; and Alistair Jones as a strategic solutions specialist from Aon Hewitt.

LDI is a term relating to how institutions such as pension funds and endowments invest in order to achieve returns to meet their expected future payouts. The LDI area has become increasingly important in light of recent low bond yields, unexpected increases in longevity and changes to accounting standards.

Meanwhile, the new RDR-friendly fund aims to provide investors with a low cost, lower risk, transparent alternative to passive investing. The fund has a total expense ratio capped at 40 basis points and aims to generate outperformance of 1 per cent per annum (gross of expenses) versus the MSCI World Index or equivalent global indices. 

The firm said it will invest in what it views as a “highly diversified” portfolio of over 500 global stocks. The fund will be managed by Schroders’ global Quantitative Equity Products team headed by Justin Abercrombie.