Schroders adds hedging to Sloane emerging markets fund

Schroders has opened hedged sterling and euro share classes on its GAIA Sloane Robinson Emerging Market fund, enabling investment without exposure to the dollar.

It has also closed the existing unhedged sterling and euro share classes to new investment, saying if investors want to take on dollar risk they can buy the dollar share class.

The hedging means investors in the fund, which uses dollars as its base currency, will not be exposed to fluctuations in the value of the dollar versus the value of the currency they invested via. (article continues below)

Gavin Ralston, the global head of product at Schroders, says: “In order to mitigate this GBP hedged and EUR hedged share classes have been introduced that will offer GBP and EUR currency investors a return that is more closely aligned to the base currency return of the fund.”

Schroders linked up with London hedge fund manager Sloane Robinson LLP on June 30 to launch the UK retail fund, which uses sophisticated techniques to invest in emerging markets like China and India.

In August Ben Yearsley, a senior investment manager at Hargreaves Lansdown, criticised the fund for charging annual fees of 2% and a 20% performance fee.