Schroders readies geared fund for planners

Vishal Teckchandani
— 1 minute read
Asset manager Schroders is set to unveil a geared fund that invests in worldwide stocks and targets inflows from financial planners.
Asset manager Schroders is set to unveil its Schroder Geared Global Active Value Fund (Hedged) to the retail financial adviser market on July 1.

The fund uses leverage and buys into Schroders' huge international portfolio strategy, the Schroder Global Active Value Fund (Hedged).

The geared active value fund was scheduled to be launched last August and had a platform lined up, but Schroders postponed the launch because stocks worldwide were too expensive at the time, head of product and marketing Stephen Kwa told InvestorDaily.


Gains and declines in the global active value strategy are amplified in the geared active value fund by twice the amount.

For example, if the global active fund posted a 10 per cent gain in a year, the geared fund would return 20 per cent in the same time frame.

Schroders' global active value strategy, with US$2.4 billion in assets, is managed from London and Sydney.

It holds around 800 stocks in countries including Brazil, China, India, Japan, the United States and the United Kingdom.

"We just want to find the most attractive value opportunities around the world and diversify in as many different things as possible," Kwa said.

The fund is not mandated to hold Australian stocks.

The global active value fund's biggest holdings were in financial, telecommunication and energy companies as of March 31.

Research house Lonsec gave the global active value strategy a recommended rating in April, citing the strength of its 14-person investment team.

The strategy returned 11.7 per cent a year from its inception in September 2005 until May 31, 2008.

The minimum investment in the fund is $50,000 and Schroders is in talks with multiple platforms to roll out the fund.


Schroders readies geared fund for planners
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