Schroder Equity Opportunities Fund
An index unconstrained, all cap strategy managed by the highly rated Schroders Australian Equity team.
The Schroder Equity Opportunities Fund provides exposure to a range of Australian listed companies across the full market capitalisation spectrum. These companies are characterised by strong returns on capital and a sustainable business franchise - offering pricing power and control over business direction.
The key differentiating feature of the fund is that benchmark weightings are not considered during the portfolio construction process while the stock selection methodology has no size constraints, using the full universe of opportunities.
|Fund Report||Fund Summary||Investor Brochure||PDS|
|Fund Inception date||14 December 2007|
|Valuation||Every business day|
|Minimum investment||Wholesale class - $20,000|
|Buy/sell spread^||0.40% on application; 0.40% on redemption|
|Management costs (ICR)||Wholesale class - 0.92% p.a.|
|Performance fee||Plus a performance fee of 15.4% p.a. of gross out-performance above 2% p.a. (as calculated daily) over the S&P/ASX 300 Accumulation Index|
|Distributions||Usually last business day of June and December|
^Subject to change. Refer to the Buy/Sell spreads page in the Fund Centre
Who does this fund suit?
The Fund is suitable for Australian investors that are seeking a high conviction equity strategy but who do not want to sacrifice portfolio diversification opportunities which the broader market presents.
Because the strategy will depart materially from benchmark performance, in both directions, it is suitable for those investors with appropriate time horizons and a tolerance and patience for index deviation.
Over the long term, equities have generally outperformed other asset classes, however returns can be volatile and negative returns are possible in the short to medium term. It is hence important to understand the risks associated with investing in the Fund. Schroders actively assesses and manages risk at every state of the investment process. The main risks specifically with investing in this strategy are market risk, equities risk, company risk, international risk, currency risk, derivatives risk, liquidity risk, counterparty risk, regulatory risk, administration risk and fund risk.
For further details about the risks of investing in this strategy please refer to the Product Disclosure Statement.
Performance of the Schroder Equity Opportunities Fund has been strong over its lifetime. Growth since inception (net of fees) has been ahead of the S&P/ASX Index, despite a period which includes the GFC and significant artificial stimulus via low interest rates and quantitative easing.
Market capitalisation breakdown
Source: Schroders. Factset as at 30 June 2017
Top 10 holdings
Source: Schroders. as at 30 June 2017
Martin is Head of Australian Equities and involved in the portfolio construction process for Australian Equity portfolios. Martin joined Schroders in 1994 and has 29 years industry experience, much of which was spent managing Australian Equities.
Andrew is Deputy Head of Australian Equities and involved in the portfolio construction process for Australian Equity portfolios. Andrew Joined Schroders in July 2007 and has 28 years industry experience managing large and small cap Australian Equities
The broader Schroder Australian equity team consists of 14 investment professionals, one of the largest teams in the market.
|Head of Australian Equities||29 years||Diversified Financials, General Insurance, Life Insurance, Telecommunications & Engineering|
|Deputy Head of Australian Equities||28 years||Building Materials, Chemicals, Steel, Online and Software & Education|
|Portfolio Manager||20 years||Banks, Gaming, Finance (Small diversified financials)|
|Head of Research||21 years||Energy, Coal, Diversified Mining, Iron Ore, Metals & Mining Services|
|Portfolio Manager||16 years||Media, Healthcare, Paper & Packaging|
|Equity Analyst||18 years||Infrastructure, IT Services, Property (inc Developers), Transport|
|Equity Analyst||10 years||Utilities, Food Retail, Beverages, General Retail, Wealth Management|
|Equity Analyst||5 years||Industrial, Construction services, Agriculture, Gold|
|Equity Analyst||7 years||Tourism & Leisure sector, some consumer related stocks and niche metals|