Australian Equities offer opportunities for growth investing in your own backyard.
We’ve been investing in Australian equities for more than 55 years with a focus on delivering returns.
With a range of active funds, we seek to offer select investment opportunities across the ASX 200 and ASX 300.
58% of Australian investors hold Australian shares, and shares remain Australia’s most popular investment option*. They appeal to investors thanks to their potential for strong returns. An investment in Australian equities tends to deliver higher total returns over the long term compared with cash or fixed income investments.
*ASX Australian Investor Study, 2020
Holding Australian equities in your portfolio brings the potential for returns from capital growth and dividends. As the market value of a company increases when its share price appreciates, your equity investment in that company grows in value too. You may also receive income from your Australian equity investments in the form of dividend payments, which are paid to shareholders from company earnings.
As a growth asset, Australian equities also offer the potential to deliver long-term returns that can protect your wealth and income during periods of heightened inflation.
When companies pay dividends to shareholders, this payment is usually made from their earnings after tax. This means you may be able to receive a tax offset – called a franking credit – when you receive dividend income from your Australian equity investments.
Strong investment results will often come from a portfolio made up of asset classes that behave differently across the economic cycle and as markets go through changes. By investing some of your wealth in Australian equities as well as other asset classes, you’re diversifying your portfolio as an attempt to protect overall investment returns.
Investing with Schroders means investing in a global brand that has unmatched experience in Australian equities. This asset class has been part of our investment offer for more than 55 years. The many changes in the corporate and economic landscape within that timeframe has provided us with a profound understanding of the local equity market.
A comprehensive, sector-by-sector top-down view of the Australian equities landscape is just one part of our on-the-ground expertise and selection process. We use bottom-up research to stay on top of the opportunities across the ASX 300 and identify the strongest long-term performers. Our active management approach strives to balance risk and return so we can seek to deliver favourable returns to our Australian equity investors.
Led by Martin Conlon and Andrew Fleming, our team of 12 investment professionals is one of the largest dedicated Australian equity teams. They’re backed by the first-class research and asset management capability you’d expect from one of the biggest global names in investing. Together they offer exceptional coverage of the Australian equity market.
When it comes to Australian equities we’re not interested in the fads or flavours of the month. Instead, we look at the fundamental value of companies in our portfolios as an attempt to ensure investors can receive sustained, long-term returns from their capital.
Risk is part of any growth investing experience. However, we aim to balance that risk with the right level of reward and that’s why we use an active, diversified approach that’s not swayed by market sentiment or sector bias.
Investing in Australian equities gives you the opportunity to boost returns from the growth portion of your portfolio. Australian equities offer investors exposure to capital growth and dividend returns from successful Australian companies listed on the ASX 200 and ASX 300. But like many other growth assets, investors should accept that their allocation to Australian Equities comes with a high level of risk and volatility.
Australian equity investments are typically appropriate for investors seeking capital growth; however, you must be prepared to accept a high to very high amount of risk. Whether you’re investing in an Australian equities fund or in direct shares, these options are unlikely to be suitable if you’re seeking capital preservation or have a short investment timeframe.