Fund Management
Schroders Launches Multi-Factor Equity Fund

The fund will adopt a bottom-up investment approach.
Investment firm Schroders has launched its
global multi-factor equity (GMFE) fund, a diversified investment
strategy which targets consistent outperformance in a
risk-controlled way.
The fund will adopt a bottom-up investment approach, allocating
to an blend of stocks across multiple factors including quality,
momentum, value, low volatility and small-cap, the firm said in a
statement.
Schroders believes "the fund’s systematic factor-based investment
process could be an ideal low-governance solution for UK Defined
Contribution (DC) pension schemes".
It will aim to outperform the MSCI All Country World index over
the long term, while also delivering low benchmark-relative risk.
It will be managed by Schroders advanced beta team, which was set
up in 2013.
“This value-for-money fund will seek to enable DC savers to
benefit from a new way of equity investing," said Tim Horne, head
of UK institutional DC. "Governance and costs are rightly a key
focus for UK DC pensions, but this should not come at the expense
of returns - the key element which will ensure people can retire
with confidence and security. GMFE brings investment innovation
to the DC saver, targeting additional return compared to a
passive equity solution in a risk-controlled way.”