Schroders has announced the launch of the Schroder Global Active Allocation Fund alongside a foundation investment mandate from an unnamed large government super fund.
The new fund has an investment objective of outperforming the Your Future, Your Super (YFYS) benchmark for alternative investments and strategies by 1-2 per cent before fees each year over rolling three-year periods.
Schroders said that the composite benchmark was an equally weighted blend of MSCI All Country World, Ex-Australia, Equities Index and the Bloomberg Barclays Global Aggregate Bond Index, to match the risk profile of the YFYS benchmark.
“In response to a large government super fund’s need for a strategy that managed directly to the YFYS alternative asset benchmark, we created a multi-asset fund that aims to outperform within a tracking error limit,” said Schroders Australia CEO Sam Hallinan.
“We bring our considerable experience to bear in partnering with the fund on this investment opportunity.”
The Schroder Global Active Allocation Fund will be run by lead fund manager Angus Sippe with the firm’s Australian multi-asset team.
Mr Sippe said that the fund would be well suited to APRA-regulated funds that invest in strategies subject to the YFYS alternatives benchmark and aimed to provide a core solution for funds in the liquid alternatives space since it is risk managed to the benchmark.
“The fund takes a forward-looking approach to asset allocation and risk management, allowing for tactical positioning around the YFYS alternatives benchmark (50 per cent global equities/50 per cent global bonds),” said Mr Sippe.
“However, the fund’s investment universe is broader and is not constrained by the constituents of the YFYS alternatives benchmark. It has a broad universe of investments including traditional assets as well as exposure to alternatives, active currency and derivative strategies.”
Jon Bragg
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
