Schroder ISF* Changing LifestylesOur work, home and social lives are being shaped by spending more and more time in the digital world. Who’s moving fastest to respond to that change?
We live digital lives now – and what that means keeps changing
The 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 has forced people to change their behaviour in ways they otherwise would not have.
*Schroder International Selection Fund is referred to as Schroder ISF.
What’s driving our lifestyle changes?
Find out why this is a theme going from strength to strength.
Why should investors get involved?
Portfolio manager Charles Somers weighs in.
Investing in early adapters to changing lifestyles
How we live keeps transforming as we spend more and more time on digital media. That 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.
Benefit from diversification across 4 sub-themes
- Identity: social media, luxury, conscience
- Accessibility: immediacy, convenience, price
- Experiences: gaming, music and sports, travel
- Wellbeing: exercise, health eating, pet health
Opportunities across generations and geographies
While we may associate digital consumption with youth, it’s a strong trend across all generations and regions. So the opportunity set is considerable and we set out to target the very best opportunities.
We look 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
Our portfolio manager has over 20 years’ experience of investing in consumer stocks, with backing from over 90 analysts across 11 countries. The team also draws on our dedicated Data Insights Unit which offers a quantitative view and powerful insights to help the team select their best ideas.
Schroder ISF Changing Lifestyles
"Between them, Facebook and Tencent have over 4 billion monthly users. And on average, each of us spends over 6 hours a day with digital media. That’s transforming how we live, work, shop – even look after ourselves. We bring together all of Schroders resources to identify companies making the changes and riding the waves. It’s a fascinating time."
What are the risks?
- 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.
- 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.
- 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.
- 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.
- 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.
This webpage does not constitute an offer to anyone, or a solicitation by anyone, to subscribe for shares of Schroder International Selection Fund (the “Company”). Nothing on this webpage 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. 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. For Luxembourg, these documents can be obtained in English at www.schroders.lu For Luxembourg, these documents may be obtained in English, free of charge, from the following link: www.eifs.lu/schroders.
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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.
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