Schroder Global Equity FundPursue balanced, risk-adjusted returns while harnessing some of the most exciting trends in global equity
In a changing world, Schroder Global Equity Fund offers exposure to cutting-edge innovation - but in a highly disciplined and structured way. Managed by Alex Tedder, Head of Schroders' Global and Thematic Equities team, the fund aims to deliver consistent long-term returns by investing in stocks that have strong growth expectations, which have yet to be recognised by global markets.
Tapping into the 'growth gap'
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 newsflow
- 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.
Schroder Global Equity Fund is a fundamental, bottom-up core strategy which seeks to deliver strong risk-adjusted returns. Focusing on the best 100-130 investment ideas identified by the investment team and leveraging the inputs of our global research platform, the strategy is style-agnostic and aims to deliver alpha through most phases of the market and economic cycle.
Careful trailblazing - our investment edge
Our well-resourced and highly experienced investment team leverages Schroders’ global research platform comprising more than 100 equity analysts and data scientists. Based in 11 different countries, they provide crucial and timely local insight into the companies and environments they operate in. What makes their approach different?
Style-agnostic, blended, investment approach
The strategy is underpinned by a philosophy that reflects the team’s confidence that stocks that deliver a positive surprise in revenues, cash flows and ultimately earnings are likely to perform well over time, irrespective of the market environment. This is an all-weather strategy, harnessing proven drivers of outperformance.
Balancing long-term holdings with tactical opportunities
The strategy’s ‘core’ holdings are expected to demonstrate growth over multi-year time horizons, often supported by thematic drivers and sustainable competitive advantage. ‘Opportunistic’ holdings demonstrate a gap between company earnings and the market’s expectations typically on a 6-18 month view. These stocks tend to be more cyclical in nature or reflect situations where a catalyst has been identified that will change the trajectory of a company’s near term growth.
Proprietary fundamental risk framework
Our proprietary framework delivers a forward-looking and dynamic assessment of stock risk based on quantitative and qualitative aspects. This ensures a risk-adjusted return perspective when considering stock selection, as well as aiding stock position sizing in portfolios, which contributes to improved downside protection and performance consistency.
Doing the groundwork – a focus on sustainable growth
We believe in-depth fundamental research is the most reliable means of appraising future earnings growth potential relative to market expectations, to identify companies with a positive growth gap. The strategy, and team more broadly, explicitly integrate environment, social and governance factors within its research and risk framework in order to assess the durability of companies’ forward-looking growth.
"Our approach seeks to exploit market inefficiencies, by investing in companies with strong financial dynamics that are expected to positively surprise the market."
Head of Global & Thematic Equities
This webpage does not constitute an offer to anyone, or a solicitation by anyone, to subscribe for shares of Schroder Investment Fund Company (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 Unit Trusts Limited.
Subscriptions for fund units 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 are available in English and can be obtained, free of charge, from Schroder Unit Trusts Limited.
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 amount originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall. The views and opinions contained herein are those of Schroders and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations.
Issued in July 2023 by Schroder Unit Trusts Limited, 1 London Wall Place, London EC2Y 5AU. Registration No 4191730 England. Authorised and regulated by the Financial Conduct Authority. For your security, communications may be taped or monitored.
Fund risk disclosures
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.
Currency risk: The fund may lose value as a result of movements in foreign exchange rates, otherwise known as currency rates.
Derivatives risk: Derivatives, which are financial instruments deriving their value from an underlying asset, 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 interest 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, meaning investors may not be able to have immediate access to their holdings.
Market risk: The value of investments can go up and down and an investor may not get back the amount initially invested.
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.