QEP Global Core

Investment Objective

The QEP Global Core strategy seeks to produce a long run return of +1% per annum (gross of fees) above the MSCI World index or comparable global benchmarks, measured over a full market cycle.


Schroder QEP Global Core is an actively-managed strategy designed to deliver modest incremental outperformance of MSCI World with limited index-relative risk. The team analyzes a global universe of over 15,000 companies to identify attractive opportunities, applying index-relative constraints at the stock, sector and regional level in order to ensure effective diversification, to manage risk and to avoid any extreme outcomes. We would suggest that this strategy offers investors the benefits of index-based investing from a risk and cost perspective with the advantage of relative performance upside.

Stock selection for this strategy is grounded in the analysis of company fundamentals indicating value and business quality, and portfolios will typically exhibit a mild style bias towards both of these factors. The advantage of investing in both Value and Quality is that, while both tend to outperform over time, they deliver their returns at different stages of the economic cycle, creating the potential for outperformance across a broad range of market environments. We also monitor the exposure of portfolios to other metrics, including Momentum and ‘Glamour’, in order to guard against any undue influence on returns from these sources.

We believe that intelligent portfolio construction can greatly enhance the ability to generate repeatable long-run returns. The success of our approach depends on the efficient and consistent identification of stocks with our required characteristics, combined with the careful management of sector, region and beta risks in order to reduce top-down influences which are inherently difficult to forecast.