British fund manager Schroders has unveiled Global Multi-Factor Equity (GMFE), a new fund for defined contribution (DC) schemes.
The new vehicle will allocate to stocks attractive for different factors such as quality, momentum, value, low volatility and small-cap.
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In the long term, the fund will aim to outperform the MSCI All Country World index as well as also offer low benchmark-relative risk.
Schroders said that the integrated approach of the vehicle will lower the performance variability of investing in individual factors.
The new fund will have an ongoing charge of 0.24% annually and will be run by Schroders Advanced Beta Team that oversees £4.6bn in assets.
Schroders head of multi-asset research and GMFE fund co-manager said: “While many of the concepts behind factor investing are nearly as old as investing itself, much newer is the idea of bring them together systematically. The GMFE fund aims to allow investors to benefit from the key drivers of market returns in a risk-controlled way.”
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