Schroders’ Real Return funds now on ASX
Investment manager, Schroder, has launched its first direct-to-consumer managed fund on the Australian Securities Exchange (ASX), based on its real return managed fund.
The Schroder Real Return Fund (managed fund) (ASX:GROW) was launched on the ASX based on Schroders' Real Return CPI plus five per cent fund, which delivered 6.4 per cent per annum (post-fees) since inception in October 2008.
Investors were demanding simple to access diversified strategies, which had low risks and real returns, according to the fund manager.
Schroder claimed it was the first active, global multi-asset exchanged traded managed fund on the ASX, which was not a hedge fund.
Schroder Investment Management Australia chief executive, Greg Cooper, said: "The move to offer the strategy via an exchanged quoted managed fund structure reflected the growing desire of many retail investors and specially SMSF investors, to improve portfolio diversification and boost returns, but through a preferred quoted format".
Unlike many hedged funds, GROW aimed to achieve a return of CPI plus five per cent over a rolling three year period, without the significant use of derivatives or leverage.
Head of fixed income and multi asset for Schroder, Simon Doyle, said investors were slowly coming to terms with the new low return environment and needed to change their portfolios to achieve future investment outcomes.
GROW suited investors who wanted diversification and protection in volatile markets and real returns amid the low return environment.
Recommended for you
Infrastructure assets are well-positioned to hedge against global uncertainty and can enhance the diversification of traditional portfolios with their evergreen characteristics, an investment chief believes.
Volatility in US markets means currency is becoming a critical decision factor in Australian investors’ ETF selection this year.
Clime Investment Management is overhauling the selection process for its APLs, with managing director Michael Baragwanath describing the threat of a product failure affecting clients as “pure nightmare fuel”.
Global X will expand its ETF range of exchange-traded funds next month with a low-cost Australian equity product as it chases ambitions of becoming a top issuer of ETFs in Australia.
