Schroders fund seeks to limit losses

SCHRODER Investment Management is launching a fund that seeks to limit fund losses to about 15 per cent over a 12-month rolling period.

This is achieved through a hedging strategy - that is, up to 10 per cent of the fund is invested in listed index futures that can dial up or down the equity exposure. The fund is called the Schroder Global Equity Stabiliser.

Investors should note, however, that the fund does not offer any guarantees. While the indicated downside for a 12-month period is 15 per cent, it is possible that the cumulative loss over longer periods could exceed 15 per cent.