Schroders has launched a multi-asset fund designed to preserve wealth against inflation and provide savings growth with limited volatility.
The firm says it expects a global inflationary environment in which this kind of fund will be in demand.
Malcolm Melville will manage the Schroder ISF Wealth Preservation fund, which is aimed at retail and high-net-worth investors. Melville works in the company’s emerging market debt, currency and commodity team.
Peter Beckett, head of international marketing, says the fund “deliberately does not fit cleanly into a single category, spanning the absolute/total return and real return categories, and is intended to be an all-weather portfolio which we believe will be an attractive alternative to other products in these areas”.
Beckett says the fund does not use shorts, leverage or complex derivatives.
The statistics office of the European Union said the inflation rate in the eurozone fell 0.2 points to 2% in January, and the European Central Bank has predicted inflation of 1.6% this year and 1.4% in 2014.
The inflation rate in the UK was 2.7% in December, according to the Office of National Statistics.
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