Schroders to launch third low-cost active fund

Schroders is unveiling its third RDR-friendly fund at the beginning of August, offering  a low-cost and low-risk alternative to rival passive investing.

The Schroder Dynamic Multi-Asset fund is a reconstruction of the Schroder Diversified Target Return fund, and will have a D unit class with a total expense ratio capped at 50 basis points, and is available on platforms.

The fund aims to return CPI inflation plus 4% a year, net of fees, over a market cycle of around five years.

Schroders aims to do this though actively managed asset allocation and by making a large allocation to core global equity strategies. It will also diversify through exposure to a range of asset classes including commodities and will make a strategic allocation to fixed income to manage market volatility.

Schroders head of multi-asset investments Johanna Kyrkland (pictured ) said: 'At a time when investors are torn between confidence in the global economic recovery, concern about European sovereign debt, the potential impact of tensions in the Middle East and North Africa and the devastating earthquake in Japan, the ability to diversify investments across a number of asset classes is very reassuring.'