Schroders Capital Semi-Liquid solutions
Demand for private markets keeps rising, and not just among institutional investorsWhat are open-ended evergreen funds?
Open-ended evergreen funds, or “semi-liquid” funds, represent a relatively new route to access private markets.
These funds are open-ended, meaning investors can subscribe and redeem at regular intervals at the prevailing net asset value (NAV) of the fund and have no fixed life.
What are the benefits of open-ended evergreen funds?
For private wealth clients, routes of access into private markets have historically been limited to closed-ended investment trusts, with traditional funds having significant barriers to access including; high minimums, capital call drawdown structures, long lock ups etc.
Open-ended evergreen funds in the UK represent a complementary option to investment trusts, giving consumers greater choice in how they access private markets.
How do open-ended evergreen work?
Open-ended structures, where investors can buy and sell at a prevailing NAV, historically, have 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.
Key Information
Illiquid funds | Semi-liquid funds | Liquid funds (Investment trusts) | |
Subscription | Episodic | Monthly | Daily |
Capital Deployment | Over time | Immediately | Immediately |
Liquidity | None | Monthly or Quarterly, subject to limits | Daily |
Performance Reporting | Quarterly | Monthly | Daily |
Fund Life | Typically, 10+ Years | Continuous | Continuous |
Pricing | NAV | NAV | Market |
What do Schroders offer?
This page does not constitute an offer to anyone, or a solicitation by anyone, to subscribe for shares of Schroders Capital Semi-Liquid Global Private Equity, Schroders Capital Semi-Liquid Global Innovation Private Plus, Schroders Capital Semi-Liquid Circular Economy Private Plus, Schroders Capital Semi-Liquid Global Real Estate Total Return (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 Caiptal 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.Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell any financial instrument/securities or adopt any investment strategy.
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.
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.
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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.