The fund will be managed by Wellington Management and will be available on Schroders’ alternative Ucits platform.
Schroders said the fund currently allocated to macro, long/short equity, absolute return fixed income, and market neutral strategies to crease a fund with multiple return drivers, and less exposure to individual strategy and manager risk.
The fund is based on Wellington’s existing Pagosa strategy which is managed by Christopher Kirk and Dennis Kim. The fund has over $2 billion in assets under management and invests across nine strategies – 60% equities and 40% in fixed income strategies.
Kirk and Kim said while they could not predict what would happen over the next five years, they believed the path was unlikely to be as smooth as the past five years.
“In this context, we think a more diversified multi-strategy approach can be beneficial to client portfolios; providing diversification benefits, volatility dampening and a return stream that is less correlated with risk assets,” they said.
Schroder director of GAIA platform, Eric Bertrand, said there was industry wide demand from clients for multi-asset strategies.
“This is unsurprising given that they have the potential to provide the client with multiple return streams and downside mitigation,” he said.