Changing Lifestyles
Connect with the driving forces of digital consumptionThe number of hours we spend on digital networks has risen relentlessly over the years. Through this connectivity we are able to broadcast to others our preferences and attitudes, whether by highlighting recent purchases or, increasingly, signalling our association with certain values or a particular worldview.
External factors such as COVID have also accelerated the pace of change as the new normal have forced people to change their behaviour in ways they otherwise would not have.
Our lifestyles keep transforming as we spend more and more time on digital media. This continuous transformation opens up opportunities for businesses that can spot early on how lifestyle changes impact patterns of spending on goods and experiences and can translate this into value creation.
Key highlights
Changes to our lifestyles are happening all around us. While we may associate digital consumption with a younger cohort, it is a strong trend across all generations as well as geographies. So the opportunity set is considerable and we set out to target the very best opportunities.
Looking beyond the size of a company
Big companies can have significant impact and help drive change. At the same time, we recognise that all companies start small, and small companies can grow to have a big impact. We invest across the market cap spectrum for this reason.
Seasoned team harnessing our research platform and data insights
In order to build our optimal portfolio, we need a seasoned team with the right resources. The portfolio manager has over 20 years’ experience of investing in consumer stocks, and is supported by over 90 analysts located across 11 countries. In addition, Schroders data insights unit provides a quantitative view and powerful insights to help the team select their best ideas.
Risk Considerations
- Concentration risk: The fund may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the fund, both up or down.
- Currency risk: The fund may lose value as a result of movements in foreign exchange rates.
- Derivatives risk: Derivatives may be used to manage the portfolio efficiently. A derivative may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the fund.
- IBOR risk: The transition of the financial markets away from the use of interbank offered rates (IBORs) to alternative reference rates may impact the valuation of certain holdings and disrupt liquidity in certain instruments. This may impact the investment performance of the fund.
- Liquidity risk: In difficult market conditions, the fund may not be able to sell a security for full value or at all. This could affect performance and could cause the fund to defer or suspend redemptions of its shares.
- 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 macro economic environment, investment objectives may become more difficult to achieve.
- 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.
- Counterparty risk: The fund may have contractual agreements with counterparties. If a counterparty is unable to fulfil their obligations, the sum that they owe to the fund may be lost in part or in whole.
- Market risk: The value of investments can go up and down and an investor may not get back the amount initially invested.
Important information:
For professional investors and advisers only. The material is not suitable for retail clients. We define "Professional Investors" as those who have the appropriate expertise and knowledge e.g. asset managers, distributors and financial intermediaries
This information is a marketing communication. This information is not an offer, solicitation or recommendation to buy or sell any financial instrument or to adopt any investment strategy. Information herein is believed to be reliable but we do not warrant its completeness or accuracy. Schroders has expressed its own views and opinions in this document and these may change. 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 any overseas investments to rise or fall. Past Performance is not a guide to future performance and may not be repeated. This document does not constitute an offer to anyone, or a solicitation by anyone, to subscribe for shares of Schroder International Selection Fund (the “Company”). Nothing in this document should be construed as advice and is therefore not a recommendation to buy or sell shares.
Subscriptions for shares of the Company can only be made on the basis of its latest Key Investor Information Document 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.
Issued in May 2022 by Schroders Investment Management Ltd registration number: 01893220 (Incorporated in England and Wales) which is authorised and regulated in the UK by the Financial Conduct Authority and an authorised financial services provider in South Africa FSP No: 48998.
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