Fund Management

Schroders Launches Multi-Factor Equity Fund

Robbie Lawther, Reporter, London, 8 September 2017

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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.”

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