Benchmark Capital CIO Alex Funk
Schroders Investment Management has launched a suite of six multi-manager products, called Schroder Portfolios, to be headed up by Benchmark Capital CIO Alex Funk.
Schroders said the multi-asset portfolios would invest in a range of assets, including investment trusts and exchange traded funds, with the investment committee, chaired by Funk, also receiving independent fund research from Rayner Spencer Mills Research.
The funds would “provide investors with the benefits of a model portfolio with the efficiencies of a unitised fund”, Schroders added. The portfolios’ asset allocation will be under constant review by the investment committee and will formally be rebalanced on a quarterly basis.
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Portfolio manager Funk said the investment philosophy of the portfolios would be “built on the premise of deconstructing the total return formula into its simplest components – alpha and beta”.
“By investing in these two components separately, we aim to achieve investors’ total return in a more efficient way,” Funk explained.
“We also believe that certain markets are more efficient than others, therefore we prefer to take only market exposure in efficient markets and invest actively with higher conviction in markets that exhibit less efficiency.
“We aim to increase our passive holdings on an aggregate basis when the overall economy is moving into an expansion phase. We want to expose investors to the overall market momentum which is best captured through passive investments.
“Similarly, when the overall economy is set to enter a slowdown or recessionary phase, we want to increase our exposure to active managers to increase our downside protection.”
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Gillian Hepburn, intermediary solutions director at Schroders, said many advisers require investment solutions suitable for a broad segment of clients due to regulations introduced under MiFID II, meaning they are looking for external solutions to address this challenge.
“At Schroders we want to provide advisers with a broad range of solutions to support them and I am pleased that these portfolios have joined our solutions range,” Hepburn continued.