British fund manager Schroders has introduced a £4bn Investment Solutions business in the UK to offer low-cost model portfolios and multi-asset funds.
The new business – Schroder Investment Solutions – will provide investors a suite of model portfolios in keeping with varied investment preferences and risk profiles of clients.
This covers the Schroder Active, Strategic Index and Sustainable ranges, with each having an annual management charge of 15 basis points.
Each range will include six to nine model portfolios with various risk ratings.
The unit will also provide two ranges of multi-asset funds, namely the Schroder Tactical Portfolios and the Schroder Blended Portfolios.
Schroder Tactical Portfolios will offer exposure to Schroders funds traditionally unavailable to retail investors. Capped at 29 basis points, it will also allocate to lower-cost passive instruments.
Blended Portfolios have been rebranded from Schroder Portfolios to reflect their allocations to both active as well as passive investments.
Alex Funk will be the CIO of Schroder Investment Solutions. He will be assisted by his team of investment experts and Schroders £169.4bn multi-asset team headed by Johanna Kyrklund.
They will also be supported by the firm’s Economics team as well as independent research from Rayner Spencer Mills Research.
Funk noted: “Financial advisers need to access a range of solutions at different risk profiles, price points and investment objectives and this is exactly what Schroder Investment Solutions offers.”
Schroders head of UK Intermediary Doug Abbott added: “Financial advisers have been telling us they want to see an accessible range of low-cost funds and model portfolios available on a wide range of platforms, we will be delivering on this.
“Advisers will have access to a series of solutions that will offer the full range of risk and return profiles, different investment styles including fully active, blended active-passive and sustainable, which are designed to deliver value at a competitive cost.”
Other fund launches by Schroders
In December last year, Schroders unveiled a new Shariah-compliant fund called Islamic Global Equity Fund, which integrates Shariah Law compliance with multi-factor investing.
Last July, the firm launched six risk-aligned funds supporting active and passive investments.
In the same month, Schroders also collaborated with Singaporean bank DBS to launch a new multi-asset fund that aims to support retired investors in decumulating assets.
The new strategy, Schroder Asia More+, will offer exposure to several investment growth themes across the Asian market.