S&P will conduct research and analysis and will recommend funds for selection. Schroders will provide asset allocation, portfolio construction, risk management and performance measurement. Schroders' international wholesale network will also provide marketing and sales service, which will be available globally, excluding North America.
The global fund of funds market is expected to grow by up to 30% per year to more than $700 billion by 2007, as investors turn to best-of-breed products for diversification, according to the company.
"Investors are looking for cutting edge best of breed products," Massimo Tosato, group MD retail, Schroders, said in a statement. "Our service will deliver this through a combination of the wealth of Schroders asset allocation and risk management experience with Standard & Poor's superior, independent research."