Schroders has launched its first multi-asset income fund focused on emerging markets in response to growing demand from clients.
The Schroder International Selection Fund Emerging Multi-Asset Income fund, which will be managed by Aymeric Forest and Iain Cunningham, targets an annual distribution of 5 to 6 per cent and will invest across a range of asset classes and sectors in global emerging markets.
Forest and Cunningham run the £4.3bn Schroder ISF Global Multi-Asset Income, the UK-based mirror version of which was launched in November 2014 aimed at people approaching retirement with an eye on drawdown, flexibility and income.
Forest says: “We’re very pleased to announce the launch of the new fund. Investors need to be more selective in the current environment among countries and assets.
“Exchange rates need to be actively managed, as a local bond or equity market may appreciate in price whilst the local currency can depreciate. A multi-asset approach can use the dispersion in asset prices created by diverging monetary and economic cycles among emerging market countries and offer potentially lower drawdown risks compared to single asset classes.”
The Schroders multi-asset team currently manages £77.3bn of assets. Charges information for the fund was not immediately available.