The new Schroder Global Active Allocation fund will address the benchmark challenge caused by Your Future, Your Super.
The new fund was announced after the company had managed to secure a foundation investment mandate from a large superannuation fund, in a response to Government super fund’s need for a strategy managed directly to the Your Super, Your Future (YFYS) asset benchmark.
This would be a multi-asset portfolio with the objective of outperforming the Federal Government’s YFYS benchmark applying to alternative investments and strategies by 1%-2% a year, before fees, over rolling three-year periods with strict tracing error limits, the firm said.
The composite benchmark was an equally weighted blend of MSCI All Country World, Ex-Australia, Equities Index and the Bloomberg Barclays Global Aggregate Bond Index, to match the risk profile of the YFYS benchmark for alternative investments and strategies.
The fund would be run by Schroders’ Australian multi-asset team, with Angus Sippe as lead fund manager and would leverage Schroders’ global investment platform with targeted allocations of active and passive strategies using Schroders’ global specialist teams across equities, fixed income and alternatives.
“The fund takes a forward-looking approach to asset allocation and risk management, allowing for tactical positioning around the YFYS alternatives benchmark (50% global equities/50% global bonds).
“However, the fund’s investment universe is broader and is not constrained by the constituents of the YFYS alternatives benchmark. It has a broad universe of investments including traditional assets as well as exposure to alternatives, active currency, and derivative strategies,” Sippe said.
