The company said the vehicle is aimed at providing investors with access to global emerging markets with lower volatility, than straight equity funds, and “genuine downside protection in times of market stress”.
It will invest across asset classes, including global emerging market equities, bonds and commodities.
RCM said its analysis had shown that including global emerging market bonds and commodities in an active asset allocation approach can lower volatility and enhance returns when compared to an equity-only portfolio.
However, RCM added portfolio diversification alone cannot deliver the best results and the fund will therefore incorporate active asset allocation based on trend identification and tactical asset allocation in combination with total return risk management.
The first two elements are intended to enhance the risk and return profile of the strategy compared to a pure global emerging market equity portfolio. The latter component will provide downside protection to minimise losses.
The new fund will be managed by RCM’s multi asset team.
