Schroder Investment Management (Hong Kong) has rolled out a new asset allocation fund, an unconstrained product that aims to provide income and capital growth from global equities.
Dubbed as Schroder Global Allocator Fund, the fund seeks to achieve its investment objective by investing in global equities that offer sustainable dividend payments.
The Hong Kong-domiciled fund will be actively run by the Schroder Multi Asset Investment & Portfolio Solutions team, according to International Adviser.
Additionally, the fund will also allocate its assets to investment grade short-term debt instruments and cash and seeks to provide investors with steady monthly income from the portfolio yield.
The fund has been designed to allocate between 70%-100% in global equities during normal market conditions, while it also has the flexibility to reduce its global equity holdings in the range of 10%-70% of the assets to limit potential losses during difficult market conditions.
According to John McLaughlin, head of portfolio solutions, a specialist risk management team will perform the risk management process, using volatility and other indicators to adjust the fund’s equity exposure.
The fund will allocate 36.4% of its assets to North America, followed by Europe and Asia Pacific at 22.3% and 20.0%, respectively.
The Global Allocator Fund will be open for subscription from 1 September until 26 September and will be available in RMB hedged, AUD hedged, Hong Kong dollar and US dollar share classes.
With a minimum investment of HK$5000, the fund will charge an initial subscription fee of 5% and management fee is 1.5% and 0.75% on class A and class C unit class, respectively.
Garth Taljard, head of multi-asset products in Asia, said: "We believe it is the right time to offer investors a fund that provides better return and income potential than cash or bonds, and dedicated risk management to help investors reduce volatility."