Schroders is preparing to launch a European equities total return fund to meet growing investor demand for low-volatility vehicles focused on European equity marketsPARA_BREAK_SENTINEL_9f8e7d6c

Schroders is preparing to launch a European equities total return fund to meet growing investor demand for low-volatility vehicles focused on European equity markets reported Citywire Global this week. Nicholette MacDonald-Brown will manage the new fund, which is due to launch 7 March. It will invest in a portfolio of 40 to 60 stocks combining long-term capital growth with derivatives, cash and futures to adjust market exposure and keep volatility under control. The investment team will include members of Schroders’ flagship pan-European fund, the Schroder ISF European Large Cap fund, which is managed by head of European equities Rory Bateman. “Given the volatility across European markets we have seen increasing demand for a European equities product with the ability to limit non-stock specific risk,” commented Bateman on the new fund. “This product offers a solution as it enables investors to retain exposure to our successful fundamental stock picking track record within a fund that will have the ability to utilize a variety of instruments to lower the overall volatility of those returns.”