UK-based Schroders has launched a range of risk-aligned multi-asset funds combining an active and passive approach.
The strategies are designed to provide investors with the benefits of a model portfolio with the efficiency of one unitised fund.
Passive holdings in the portfolios will be increased on an aggregate basis when the overall economy is growing. When the economy is set to enter a slowdown or recessionary period, exposure to active managers will be increased to offset downside risk.
The range has access to both alpha and beta, meaning the funds are able to invest in a range of assets including investment trusts and ETFs, the firm said.
Portfolio manager Alex Funk said: “By investing in these two components separately, we aim to achieve investors total return in a more efficient way.”
He added that as certain markets are more efficient than others, the funds favour exposure in efficient markets, but also invest actively with higher conviction in markets that exhibit less efficiency.
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