Schroders
is to launch a Secure Distribution fund with a “unit trust structure”, offering
investors a 20-year plan with a fixed income after 10 years, the
firm has confirmed.  

For
the first 10 years, John McLaughlin, the fund’s manager and head of portfolio
solutions, will invest in a multi-asset portfolio, run by head of multi-asset
investments Johanna Kyrklund.

During
the next 10 years, the fund will deliver returns on a quarterly basis - equivalent
to 7.5 per cent per annum of its highest net asset value over the previous
decade. This payment will be protected by a structured product-style derivative
deal.

The
fund will also make a lump sum capital payment after the full 20 years. 

In other recent developments, Diego Cavero Mitjans was appointment as head of the UK-based investment manager’s private banking representative office in Spain in May.