Schroder 90 Plus Equity Fund

Capture new world opportunities with Schroders

Capturing New World Opportunities

The search for better investment returns in the current disrupted environment can be daunting for investors. The Schroder 90 Plus Equity Fund is an active equity fund with a minimum 90% allocation in stocks, designed to provide long term capital gain and attractive investment return potential by capitalizing the growth of the Indonesian capital market, and capture opportunities in the new economy.

Capture new world opportunities with Schroders today.

Disruption is changing the world & economy

Recent disruptions has added pressures for businesses, but also opened doors for new opportunities. The two main disruptions happening in our economy are:

Technology: Technology is developing rapidly, changing the way businesses operate and reach their customers. Businesses need to continually find ways to offer more efficient and impactful products and services. Industries that have rapidly transformed by technology include the travel and eCommerce, where services have increasingly moved online.

Globally technology continues to develop

The Covid-19 pandemic has sped up technology adoption

Source: BoFA Global Research

Technology Adoption Diagram

Sustainability: The rising awareness of sustainability has also led to another form of disruption. Governments are now seeking more sources of green energy, while corporations are encouraged to not just focus on making profit, but create long-term value by making a positive impact on the planet and society. In Indonesia, there is a slow but sure transition to zero carbon fuel and adoption of greener sources of energy. For example, we are seeing a rising demand for electric vehicles and batteries.

Indonesia is heading towards cleaner energy

The government is seeking more sources of green energy domestically

Clean Energy Diagram

Indonesia has started to move to cleaner energy, but the potential is still large. Total potential 442 GW, compared to installed capacity of 9 GW (1,2%)

Source: Coordinating Ministry of Maritime and Investment

The Covid-19 pandemic has sped up technology adoption

The Covid-19 pandemic has helped speed up technology adoption and prompted change in the behaviours of both businesses and consumers, pushing people to adopt technology earlier.

As the pandemic ensues, Indonesians are spending more time online, where they shop, work and interact, resulting in a surge in new Internet users with a higher likelihood of stickiness. Even after the lockdown, the number of hours spent online by Indonesians remained high, showing a clear change in behaviour.

Covid-19 pandemic has prompted change in behaviours

The pandemic has pushed people to adopt the disruptions earlier

Work from home

  • Data centers and processing
  • Cybersecurity
  • WiFi
  • Apps and software
  • Computer and networking
  • Crisis communications and notifications

eCommerce and logistics

  • Online retail
  • Food delivery
  • Logistics
  • Automation
  • Payment

Stay at home economy

  • Streaming
  • Video gaming and eSports
  • Exercise
  • Telemedicine
  • Home improvements
  • Social media

Invest in the future

Invest in the future, in companies that are driving the new economy. Disruption is happening in all market sectors, and it’s happening exponentially, heavily driven by technology.

Business that cannot adapt and survive as their way of business have been disrupted are known as the Disrupted, while those that manage to survive are known as Survivors.

In the disrupted environment, businesses must fight to survive. Only those that are willing to adapt to changes can survive and shape the new economy. These new economy businesses mainly fall under these categories - Disruptors, Enablers and Adaptors – and are the ones that we focus on.

  1. The Disruptor: The innovative company at the forefront of change, and are often the source or cause of disruption. They are the ones who disrupt with new and more efficient ways of doing business.
  2. The Enabler: A company that acts as the conduit for change, whose technology or expertise enables businesses to become more efficient and effective.
  3. The Adaptor: Established companies that are able adapt to new trends and delivers up-to-date products and services.
Disruptor Diagram

Why the Schroder 90 Plus Equity Fund?

Capturing new economy opportunities in Indonesia

We are seeing market and economy restructuring happening around the world, including Indonesia. In 1Q21, the JCI was driven by new economy businesses. Among the top drivers are those that either directly or indirectly own operations that are proxy to the new economy, such as digital and tech, or are related to sustainable and green energy.

With Indonesia’s digital economy set to grow, estimating to reach 8.1% of GDP by 2025F, we believe that these new economies will only keep rising.

The Schroder 90 Plus Equity Fund thus aims to optimise investment returns by capturing this new economy opportunity, focusing on adding names under the Disruptors, Enablers, and Adaptors categories.

 

Potential attractive return through optimised sustainable investments

The fund adopts an active asset allocation strategy for managing risk and volatility. Schroders actively and responsibly manages your investments, conducting extensive research to select the best potential stocks and optimize investment returns. We also incorporate sustainable factors to complement the financial factors in our investment process, to ensure a positive impact and help shape a better future for our society and planet.

 

Managed by a stable and established team

The fund is managed by a dedicated Schroders Indonesia equity team, who have proven capabilities and expertise in Indonesia’s capital market, with decades of experience through various market cycles. We have direct access to our global network, enabling us to obtain expert information to manage our funds discerningly.

Find out more

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Fund Brochure
Factsheet
Prospectus

How to invest

Individual investor

Please contact our distribution partners.

Instituitional investor

Please contact us at +62 21 29655100

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Disclaimer

INVESTMENT IN MUTUAL FUND CONTAINS RISKS, PRIOR TO INVESTING IN MUTUAL FUND, INVESTOR MUST READ AND UNDERSTAND THE FUND PROSPECTUS. PAST PERFORMANCE DOES NOT INDICATE FUTURE PERFORMANCE.

 The views and opinions contained herein are those of the author(s) on this page and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/ or strategic decisions. Past performance is not a reliable indicator of future results. The value of an investment can go down as well as up and is not guaranteed. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable, but Schroders does not warrant its completeness or accuracy. Some information quoted was obtained from external sources we consider to be reliable. No responsibility can be accepted for errors of fact obtained from third parties, and this data may change with market conditions. This does not exclude any duty or liability that Schroders has to its customers under any regulatory system. 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. The opinions in this material include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we already know. However, there is no guarantee that any forecasts or opinions will be realized. These views and opinions may change. PT Schroder Investment Management Indonesia is licensed and supervised by Indonesia Financial Services Authority (OJK).