Schroder Global Equity Alpha Fund
Exploiting global market inefficiencies to drive outperformance. (Professional Class APIR SCH0554AU).
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
Large and integrated global team
Network of over 120 global equities investment professionals across 16 countries
Fund at a glance
Schroder Global Equity Alpha Fund is an actively managed, unconstrained, ‘best ideas’ global equities fund aiming to provide capital growth in excess of the MSCI All Country World Index (Net TR) Index over a 3-5 year period. While pursuing a style agnostic approach, the fund 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.
Our investment philosophy is 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.
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.
Doing the groundwork
We believe in-depth fundamental research is the most reliable means of identifying such companies and appraising future earnings growth potential relative to market expectations. We focus on utilising better information to make better decisions. We employ on a bottom-up stock selection process to drive added value and exploit inefficiencies across global equity markets.
Our investment approach includes an analysis of ESG factors, which is integrated into our fundamental stock analysis. Our approach to ESG analysis is based on the view that as long term investors seeking to identify future earnings growth of companies, it is important to understand the entire range of factors which may influence that growth or present a risk to future growth.
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.
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
Related documents (Professional class)
Fund ratings
Meet the fund manager
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.
Ways to invest in the Schroder Global Equity Alpha Fund
Before investing in the Schroder Global Equity Alpha Fund, please read the product disclosure statement (PDS), the accompanying additional information booklet, financial services guide (FSG) and target market determination (TMD) for the fund. You can learn more about investing via our paper application form, or online application form.
Invest directly
Complete the paper application form or online application form. The minimum investment amount is $500,000 for professional class.
Contact our team
For further information about investing in the fund, please speak to a member of the Schroders team.
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Disclaimers
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.
The rating published on 11/2024 for (APIR SCH8242AU) is issued by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec Research). Ratings are general advice only and have been prepared without taking account of investors’ objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec Research assumes no obligation to update. Lonsec Research uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2024 Lonsec. All rights reserved.