Schroder Global Equity Alpha Fund – Active ETF (ASX Code: ALPH)
Exploiting global market inefficiencies to drive outperformance, with the benefits of an actively managed exchange traded fund.
Finding and exploiting ‘growth gaps’
Generating alpha from the persistent inefficiency of markets - investing in stocks with strong growth prospects, unrecognised by markets
Blended, diversified approach
To optimise sources of alpha, this ‘best-ideas’ fund blends two forms of exposure: core (long-term winners) and opportunistic (tactical) holdings
ASX-listed Active ETF
Flexibility and transparency without forfeiting potential alpha.
Fund at a glance
The Schroder Global Equity Alpha Fund – Active ETF (the Fund) is an actively managed, unconstrained, ‘best ideas’ global equities fund listed under the ticker ALPH on the Australian Stock Exchange (ASX). ALPH aims to provide capital growth in excess of the MSCI All Country World (Net TR) Index over a 3-5 year period. While pursuing a style agnostic approach, ALPH tilts to underweight value and overweight quality and growth, distinctively targeting companies that have strong growth prospects yet to be recognised by the market.
Our well-resourced team of experienced global equity portfolio managers and sector specific teams leverage Schroders’ global research platform, which includes data scientists, ESG specialists and a network of locally based analysts. Having locally based equity analysts in 16 countries provides the global equity team with unique and valuable local insights into companies and their operating environments.
The underlying strategy has an 18-year track record, with an investment philosophy based on our deeply entrenched belief that the market often misprices future earnings potential and that companies generating earnings in excess of the market’s expectations will therefore outperform. ALPH's listing on the ASX means that investors benefit from liquidity and convenience, which may not be available when investing in other actively managed global equities funds.
Exploiting market inefficencies, identifying growth gaps
We believe a growth gap can materialise in stocks due to differences between underlying company fundamentals and market estimates, caused by three persistent inefficiencies:
- Markets over-reacting to short-term news flow
- Markets’ over-reliance on historic growth and failure to identify the catalysts that change growth trajectory
- Markets failing to look far enough ahead when appraising the earnings power of companies.
We target companies that we expect to deliver forward earnings growth that will exceed the market’s expectations, i.e. stocks with a positive ‘growth gap’. We believe such stocks will deliver strong and consistent performance over the long term.
A distinctive investment process
Filtering the universe to identify best ideas.
Why invest now?
Global equities for a new era of investing
Global forces are driving a fundamental shift of major proportions for markets and societies. These include decarbonisation, demographics and deglobalisation. Cost pressures from these forces and high sovereign debt look set to keep interest rates higher for some time.
A recalibration of investment quality, risk and asset mix seems likely. In this new era, company valuations will be at the core, an essential ingredient to achieving successful long-term performance. This sets the scene for a valuation reset and a return to fundamentals-led, active equity investing principles.
Achieving success in this era seems more likely with a nimble global equity fund that can adapt to a changeable interest rate environment. A fund focused not just on growth but growth at the right price is well positioned to reap this new era’s opportunities.
The Schroder Global Equity Alpha Fund – Active ETF is listed on the ASX, making investing convenient and easy to manage, as well as adding liquidity and diversity to your portfolio.
To find out more, read our brochure:
A new era for equity investing – rethinking the global equity opportunity
Schroders knows Global Equities
Investing with Schroders means investing in a trusted global brand with over 220 years of heritage and outstanding asset management capabilities in a broad range of asset classes. With over 6,000 employees across 38 locations, our global equities teams benefit from this significant global/local focus, including the Australian business which was established in Sydney over 60 years ago.
Today we have US$87 billion in AUM* within our global equities portfolios. Our 19 global equities portfolio managers and global equities sector specialists are backed by over 160 regional equity analysts worldwide, and a further 75 global equity investment professionals. This specialist on the ground insight and analysis ensures we find the best global equity opportunities for our clients.
*As at June 2024
Find out more about the Schroder Global Equity Alpha Fund – Active ETF
Meet the managers
Investors in the Schroder Global Equity Alpha Fund stand to benefit from the expertise and experience of the Schroders’ equity portfolio management teams as well as from other teams within Schroders.
End of Day pricing
End of day pricing is displayed below. Use the selectors to download data for a specific date range.
| Date | End of Day Pricing |
Distribution history
Distribution history will be available at the end of the first full calendar month of trading.
Ex-date | Record date | DRP Election date | Pay date/Reinvestment date | CPU | Reinvestment price |
|---|---|---|---|---|---|
X January 2025 | X January 2025 | X January 2025 | XX January 2025 | X.XX | X.XXXX |
Ways to invest
The Schroder Global Equity Alpha Fund – Active ETF is listed on the ASX and can be traded using the exchange code: ALPH.
Before investing in the Schroder Global Equity Alpha Fund (Managed Fund), please read the product disclosure statement (PDS), financial services guide (FSG) and target market determination (TMD) for the fund. If you need help, you can contact our team.
Speak with any of the brokers listed below to help you invest in the Schroder Global Equity Alpha Fund – Active ETF
The role of ALPH in your portfolio
This product is likely to be appropriate for a consumer seeking capital growth. This product focuses on a single asset class and hold a concentrated number of stock holdings therefore should only be considered for up to 25% of a portfolio allocation where the consumer has a high or very high risk and return profile.
This product may experience high levels of volatility and therefore it is unlikely to be suitable for a consumer seeking capital preservation or income or for those consumers that have a low risk and return profile and/or a short investment timeframe.
Disclaimer
Investment in this Fund may be made on an application form accompanying the current Product Disclosure Statement (PDS) for the Fund which is available from Schroder Investment Management Australia Limited (Schroders) (ABN 22 000 443 274, AFS Licence 226473). The information contained in this material is general information only and does not take into account your objectives, financial situation or needs. Before acting on the information contained in this material you should obtain a copy of the PDS and consider the appropriateness of the information in regard to your objective, financial situation and needs before making any decision about whether to invest, or continue to hold.
The repayment of capital and performance in the Fund is not guaranteed by Schroders or any other party. Opinions constitute our judgement at the time of issue and are subject to change. Past performance is not an indicator of future performance. Investment guidelines represented are internal only and are subject to change without notice. Schroders may record and monitor telephone calls for security, training and compliance purposes.
^As at December 2024. Effective yield is based on the unit price at the start of the period. Income is the cash distributions paid by the fund which may include return of capital. Past performance is not a reliable indicator of future performance.
The adjusted indicative NAV (iNAV) provides an intra-day estimated value of the Fund’s investments. Schroders has engaged an agent to calculate and disseminate an iNAV throughout the Business Day. The iNAV will be recalculated throughout the day to take into account movements in the price of underlying assets either through live market prices or, where there is no live market price, a price is estimated based on a proxy instrument. The use of proxy instruments is subject to the Schroders Group Instrument Pricing Policy and governance framework. Where there is no appropriate proxy instrument available, the last price at which an asset was quoted or traded will be used. The iNAV is indicative only, and may incorporate securities for which there are no live market prices at the time of calculation and so it may not reflect the actual value of the underlying assets of the Fund.
While Schroders will use best efforts to ensure that the iNAV will be published continuously and will be up-to-date and accurate, Schroders cannot guarantee this will always be the case. The iNAV should not be taken to be or relied upon to determine the price at which the units may trade on the ASX at any point in time. To the extent permitted by law, neither Schroders nor its appointed agents shall be liable to any person who relies on the iNAV. Investors will be notified via the ASX Fund Announcements Platform if there is any material change to the methodology for calculating the iNAV. The price at which units trade on the ASX may not reflect either the NAV per unit or the iNAV. The adoption of a robust pricing methodology for the iNAV is intended to minimise this differential, as is the role of market maker but will not be able to eliminate it entirely.
The market price and the iNAV price may also deviate because the market price of the units in the Fund is a function of supply and demand amongst investors wishing to buy and sell such units and the bid-offer spread that the market maker is willing to quote for those units.