Schroders Multi-asset Investments and Portfolio Solutions (MAPS) has rolled out its first volatility controlled equity fund with downside protection for UK institutional investors.
Dubbed as Schroder Volatility Controlled Equity Fund, the new strategy has been designed to provide investors equity exposure, allowing clients to keep on track with their long-term goals.
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Managed by the MAPS team, the fund will offer Schroders’ clients and investor’s exposure to global equities in addition to maintaining a protected approach to volatility.
Also, the fund will provide exposure to a volatility targeted global equity index, with downside protection gained through a rolling program of monthly put options.
Schroders said that the fund has received initial funding from a UK final salary pension scheme under the advice of their investment consultant Redington.
Schroders head of portfolio solutions Andy Connell said: "We have seen a lot of interest from clients wishing to invest in the Schroder Volatility Controlled Equity Fund and we welcome the increasing recognition of the techniques we are using.
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By GlobalData"The recent market volatility further supports the importance of having the control capabilities in the fund to manage the downside risks."
Redington managing director & co-head of asset liability modelling (ALM) Dan Mikulskis said: "We believe risk control and downside protection are two powerful tools for keeping clients’ portfolios on track for those long-term goals. We wanted a cost effective equity pooled fund that was easy to access and had these characteristics."
