Global Equities
A new era for equity investingWhy go global?
Avoid geographic limitations to balance risk
US equities have long dominated the market, but focusing on a single market poses considerable risks. Regionally constrained managers are often forced to invest in “global themes” through “second-rate” businesses. The breadth of the universe of global equities provides exposure to worldwide-trends while also mitigating risk.
Valuation gap between US and rest of the world
The valuation gap between US equities and the rest of the world is now at unprecedented levels. While US valuations appear stretched, the earnings and valuation opportunities are improving in other parts of the market.
Global equities favour an active approach
Geopolitical and economic uncertainties demand a balanced and nimble approach to risk management. An active approach may capitalize on this potential by adapting to changing market conditions and interest rates.
Diversification is key in an uncertain geopolitical landscape
Geopolitical challenges are rising, and sustained high interest rates will pressure equity markets. Elevated valuation multiples and converging earnings trends between the 'Magnificent Seven' and other global equities may present opportunities for active stock pickers.
Active management provides nimbleness in significant market shifts
Narrow market breadth and historically low volatility have typically favored passive, but active management may be poised to benefit in the new era. In today's complex environment, active managers can apply the selectivity and discernment that will be needed to identify investments that can both seize opportunities and mitigate risks. Further, those global managers with the flexibility to move across market capitalizations and apply any style – value, growth – can pursue the best opportunities, wherever they may be.
Why Schroders?
Our equities platform manages over US$300bn in assets*. Our 40+ global equities portfolio managers and global equities sector specialists are backed by over 100 equity analysts worldwide. We specialize in decision-making under uncertainty, ensuring that portfolios are carefully balanced to manage risk effectively. Rather than focusing on short-term market sentiment, we employ intelligent portfolio construction based on innovative and forward-looking fundamental research to deliver the best outcomes for investors. *As of December 2024.
Schroders' Global Equities Capability
In this video, our Head of Equities, Alex Tedder, talks about the way the global equities market operates and how Schroders' investment philosophy guides our response. He also discusses our team structure and investing methodologies, and what makes investing in global equities such a compelling proposition.
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