Schroders realigns Target Return strategy

With evidence of a spill-over from the financial turmoil into the real economy, “we are sitting tight on equities, taking advantage of extreme valuations in credit and avoiding the more cyclical areas of the market,” says Johanna Kyrkland, who manages the fund. The £5.05m multi-asset growth fund is positioned for a bear market rally through tactical equity exposure, which will be maintained at 52%, she says. “Undoubtedly, the economic outlook is bleak, but this is now reflected in the stockmarket and prices have sunk to attractive levels.” The fund is biased towards ‘income approaches’...