Schroders Capital Semi-Liquid Global Real Estate Total Return
A cost-effective single point of access to the benefits of the global real estate marketDirect access
Get direct exposure to global private real estate opportunities alongside institutional investors
Inflation-protected income
Contractual inflation-linked leases can mitigate inflationary pressures
Open-ended and semi-liquid
Monthly subscriptions and quarterly redemptions of 5%
Fund investment objective
The fund aims to provide capital growth over five to seven years by investing directly or indirectly in a diversified range of private and public real estate investments worldwide
What does the fund invest in?
Schroders Capital Semi-Liquid Global Real Estate Total Return invests across geographies and sectors to create a diversified exposure to what we believe are the most attractive risk-adjusted real estate opportunities.
The fund has a primary focus on outperforming private real estate equity opportunities in institutional programmes and direct co-investments. It also can invest in public equities for more efficient access to some property sectors, capitalising on mispricing and providing liquidity management while reducing cash drag on performance.
Learn more about the fund and its potential benefits in our product overview.
We have identified four secular trends providing opportunities for real estate investment strategies
- Technology and the knowledge economy: The interface for “work” has shifted, consolidating value in those buildings which address specific needs and evolving tenant preferences, as various industry sectors continue to develop
- Individualism: Individual preferences with regards to “work, live and play” have shifted, further accelerated by the pandemic, deepening disparities in demand between and within related sectors
- Aging populations and demographic shifts: Rapidly changing demographics are further altering relative demand for various types and living formats
- People and places: Increased regulatory and industry standards demand a holistic approach to the creation of value for all stakeholders, including investors and communities
CASE STUDY
Tokyo Serviced Living
Tokyo Serviced Living has a strong track record in the serviced apartment sector, with 2,500 units and 95% occupancy across Asia Pacific. Their strategy focuses on a rolling conversion of existing leased residential units on lease expiry to serviced apartments. This creates improved amenities on shorter term leases, which is suitable for the higher-yielding Air BnB-style tourism market.
Disclaimer: The company shown is for illustrative purposes only and not a recommendation to buy or sell.
Sector
Residential
Size
US $11mn
Target GRETR commit
US $2m
Fund update – H1 2024
What are semi-liquid investment products?
Open-ended structures, where investors can buy and sell at a prevailing NAV, have historically had limited applicability in private markets due to the illiquid nature of the underlying investments. In response to this, semi-liquid structures have been developed to provide liquidity in a controlled manner.
A well-constructed portfolio, one that is diverse by geography, sector, type and vintage, can engineer a level of “natural liquidity” that is regular and consistent. Semi-liquids also employ liquidity management tools that can control liquidity within the fund. The result is a platform that provides investors with a liquidity window without compromising returns and helps them meet their investment objectives.
To learn more about Schroders Capital Wealth Solutions, please click the button below.
Meet the manager
Kieran Farrelly
Global Chief Investment Officer and Head of Real Estate Solutions
Fund information
Find out more information on the fund and access key investor documents through our fund centre.
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Risk considerations
Market risk - The value of investments can go up and down and an investor may not get back the amount initially invested.
Private market valuations - In times of stress it may be difficult to find appropriate prices for private asset investments and they may be valued on the basis of proxies or estimates. This may lead to significant changes in the valuation of the fund, or the inability to determine a reliable net asset value which may lead to a suspension of the fund.
Property development risk - The Fund may invest in property development which may be subject to risks including, risks relating to planning and other regulatory approvals, the cost and timely completion of construction, general market and letting risk, and the availability of both construction and permanent financing on favourable terms.
Tax risk - The Fund and its returns may rely on certain available tax efficiencies at the inception of the Fund which may be subject to changes in tax treatment or interpretations. Any change in the actual or perceived tax status or exposure of the Fund or its investments as well as in tax legislation, practice or in accounting standards could adversely affect the anticipated level of taxation.
Tenant risk - The distributions payable by the Fund are dependent on the income from the underlying property owned and is subject to the risk that tenants may default on their rental obligations.
Credit risk - If a borrower of debt provided by the Fund or a bond issuer experiences a decline in financial health, their ability to make payments of interest and principal may be affected, which may cause a decline in the value of the Fund.
Currency risk - The fund may lose value as a result of movements in foreign exchange rates, otherwise known as currency rates.
Interest rate risk - The fund may lose value as a result of movements in foreign exchange rates, otherwise known as currency rates.
Liquidity risk - The fund invests in illiquid instruments, which are harder to sell. Illiquidity increases the risks that the fund will be unable to sell its holdings in a timely manner in order to meet its financial obligations at a given point in time. It may also mean that there could be delays in investing committed capital into the asset class.
Operational risk - Operational processes, including those related to the safekeeping of assets, may fail. This may result in losses to the fund.
Performance risk - Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macroeconomic environment, investment objectives may become more difficult to achieve.
Real estate and property risk - Real estate investments are subject to a variety of risk conditions such as economic conditions, changes in laws (e.g. environmental and zoning) and other influences on the market.
Sustainability risk - The fund has environmental and/or social characteristics. This means it may have limited exposure to some companies, industries or sectors and may forego certain investment opportunities, or dispose of certain holdings, that do not align with its sustainability criteria chosen by the investment manager. The fund may invest in companies that do not reflect the beliefs and values of any particular investor.
Important Information
Marketing material for professional clients only.
This website does not constitute an offer to anyone, or a solicitation by anyone, to subscribe for shares of Schroders Capital Semi-Liquid (the “Company”). Nothing in this document should be construed as advice and is therefore not a recommendation to buy or sell shares. An investment in the Company entails risks, which are fully described in the prospectus.
The Company qualifies as a Société d’Investissement à Capital Variable (“SICAV”) and as an alternative investment fund within the meaning of article 1(39) of the 2013 Law.
Subscriptions for shares of the Company can only be made on the basis of its latest Key Information Document (where available) and prospectus together with the latest audited annual report (and subsequent unaudited semi-annual report, if published), copies of which can be obtained, free of charge, from Schroder Investment Management (Europe) S.A. These documents may be obtained in English, free of charge, from the following link: www.eifs.lu/schroders.
Schroders may decide to cease the distribution of any fund(s) in any EEA country at any time but we will publish our intention to do so on our website, in line with applicable regulatory requirements.
The fund has environmental and/or social characteristics within the meaning of Article 8 of Regulation (EU) 2019/2088 on Sustainability-related Disclosures in the Financial Services Sector (the “SFDR”). For information on sustainability-related aspects of this fund please go to www.schroders.com.
Any reference to regions/ countries/ sectors/ stocks/ securities is for illustrative purposes only and not a recommendation to buy or sell any financial instruments or adopt a specific investment strategy.
Past Performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of investments to fall as well as rise. Performance data does not take into account any commissions and costs, if any, charged when units or shares of any fund, as applicable, are issued and redeemed. Performance data does not take into account any commissions and costs, if any, charged when units or shares of any fund, as applicable, are issued and redeemed.
Schroders has expressed its own views and opinions in this website and these may change. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy.
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Issued by Schroder Investment Management (Europe) S.A., 5, rue Höhenhof, L-1736 Senningerberg, Luxembourg. Registration No B 37.799.
Distributed in the UK by Schroder Investment Management Ltd, 1 London Wall Place, London EC2Y 5AU. Registration No 1893220 England. Authorised and regulated by the Financial Conduct Authority.