Schroders has launched its first active exchange traded funds (ETF) in Europe, building on its existing ETF capabilities in the US and Australia.

Schroder ETFs ICAV - Schroder Global Equity Active UCITS ETF will increase the accessibility of Schroders’ QEP Global Core strategy, which covers approximately 15,000 stocks.

It is managed by Schroders Quantitative Equity Products (QEP) Investment Team co-head, Lukas Kamblevicius, and aims to deliver consistent outperformance across a range of market environments with lower relative risk to its MSCI World benchmark.

Meanwhile, Schroder ETFs ICAV - Schroder Global Investment Grade Corporate Bond Active UCITS ETF will enhance the availability of the existing investment strategy, which is a pure global investment strategy without exposure to high yield securities or other off-benchmark bonds.

It uses fundamental research combined with systematic tools to improve returns for investors, and was previously only available through segregated mandates.

The fund aims to provide income and capital growth in excess of the Bloomberg Global Aggregate Corporate Index.

These two initial ETFs look to complement Schroders’ existing range of products and provide investors with additional ways of harnessing the firm’s investment capabilities.

Schroder ETFs ICAV - Schroder Global Equity Active UCITS ETF was listed on XETRA Deutsche Borse on 26 September and will be shortly joined by Schroder ETFs ICAV - Schroder Global Investment Grade Corporate Bond Active UCITS ETF.

These listings will be followed by further listings on the London Stock Exchange, Borsa Italiana, and SIX Swiss Exchange.

“Schroders is bringing more than 220 years of active investment expertise into European active ETFs for the first time,” said Schroders group chief investment officer, Johanna Kyrklund.

“We are building on the decade of experience we already have offering active ETFs by bringing two of our world-class equities and fixed income strategies to a broader audience, through European domiciled ETF wrappers.

“In today’s dynamic market environment, access to market-leading active management expertise is crucial. These launches will ensure our clients can benefit from the flexibility and accessibility of an ETF wrapper, as well as the potential superior returns delivered by our active investing edge.”

Schroders chief financial officer, Meagen Burnett, added: “This key milestone demonstrates our ability to harness the scale of Schroders’ investment and operating platforms to enhance the distribution access points for existing and new clients. This allows us to offer our active investment edge in a new wrapper.

“Our European active ETF launches will enable us to reach more investors and further reinforce our commitment to moving at pace and offering the variety of investment tools and differentiated returns our clients increasingly expect.”

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