Schroder Investment Management (Hong Kong) has rolled out a new asset allocation fund, an unconstrained product that aims to provide income and capital growth from global equities.
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Dubbed as Schroder Global Allocator Fund, the fund seeks to achieve its investment objective by investing in global equities that offer sustainable dividend payments.
The Hong Kong-domiciled fund will be actively run by the Schroder Multi Asset Investment & Portfolio Solutions team, according to International Adviser.
Additionally, the fund will also allocate its assets to investment grade short-term debt instruments and cash and seeks to provide investors with steady monthly income from the portfolio yield.
The fund has been designed to allocate between 70%-100% in global equities during normal market conditions, while it also has the flexibility to reduce its global equity holdings in the range of 10%-70% of the assets to limit potential losses during difficult market conditions.
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By GlobalDataAccording to John McLaughlin, head of portfolio solutions, a specialist risk management team will perform the risk management process, using volatility and other indicators to adjust the fund’s equity exposure.
The fund will allocate 36.4% of its assets to North America, followed by Europe and Asia Pacific at 22.3% and 20.0%, respectively.
The Global Allocator Fund will be open for subscription from 1 September until 26 September and will be available in RMB hedged, AUD hedged, Hong Kong dollar and US dollar share classes.
With a minimum investment of HK$5000, the fund will charge an initial subscription fee of 5% and management fee is 1.5% and 0.75% on class A and class C unit class, respectively.
Garth Taljard, head of multi-asset products in Asia, said: "We believe it is the right time to offer investors a fund that provides better return and income potential than cash or bonds, and dedicated risk management to help investors reduce volatility."
