Schroder ISF* Circular Economy

A fund addressing the imbalance between the supply and demand of the Earth's resources

The circular economy is much more than an environmental theme, it's an economic imperative

The demand for the Earth’s resources are already exceeding supply, creating a large profit opportunity for companies that can close this resource gap.

Schroder ISF* Circular Economy invests in listed companies at the forefront of the transition to a circular economy. It looks to identify companies helping to develop products and services focused on efficiency, reusability, and recyclability while simultaneously designing out waste and pollution.

*Schroder International Selection Fund is referred to as Schroder ISF

The circular economy is a fundamental shift from a take-make-waste consumption approach to one that focuses on reusability of resources, a take-make-reuse approach.

Fund highlights

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Pure play

To capitalise on the circular economy opportunity, we are investing in firms at the forefront of this enormous development. These companies are seeing excellent growth and returns from the need for greater resource efficiency.

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Diverse opportunity set

The circular economy opportunity sits across multiple sectors and geographies, offering diversified exposure to secular growth, without reliance on any one theme “playing out”. We are style agnostic.

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Authentic approach

Schroder ISF Circular Economy is a SFDR Article 9 fund, investing only in solutions providers that further the circular economy. Our investment approach is underpinned by our development of a proprietary Circular Score.

The three key drivers of the circular economy transition

  1. Resource overconsumption: The resource consumption rate is unsustainable.
  2. Climate change: There is no net zero without the circular economy.
  3. Biodiversity: Reducing raw material demand arrests this decline.

Global resources are being consumed at an unsustainable rate. A $25 trillion gap between consumption and supply is expected by 2050**.

**Source: Accenture, 2015

Why now?

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Governments

Policy support and target setting support closing the economic loop - the gap between resource demand and supply.

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Consumers

Sustainability of products and services are driving higher environmental standards.

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Technology

Material science advances and digitisation are enabling the circular economy transition.

Learn more

You can find more information on the fund, including literature and performance data, on our fund centre website.

Portfolio manager

Schroder ISF Circular Economy

Jack Dempsey

Fund Manager

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.

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.

Higher volatility risk: The price of this fund may be more volatile as it may take higher risks in search of higher rewards, meaning the price may go up and down to a greater extent.

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.

Sustainability risk: The fund has the objective of sustainable investment. 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.

Important Information

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. 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 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 may be obtained in English, free of charge, from the following link: www.eifs.lu/schroders.

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.

The fund has the objective of sustainable investment within the meaning of Article 9 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

Any reference to regions/ countries/ sectors/ stocks/ securities is for illustrative purposes only and not a recommendation to buy or sell any financial instruments or adopt a specific investment strategy.

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.

Performance data does not take into account any commissions and costs, if any, charged when units or shares of any fund, as applicable, are issued and redeemed.

Schroders has expressed its own views and opinions in this document and these may change.

Schroders will be a data controller in respect of your personal data. For information on how Schroders might process your personal data, please view our Privacy Policy available at https://www.schroders.com/en/global/individual/footer/privacy-statement/ or on request should you not have access to this webpage.

A summary of investor rights may be obtained from https://www.schroders.com/en/global/individual/summary-of-investor-rights/

Issued by Schroder Investment Management (Europe) S.A., 5, rue Höhenhof, L-1736 Senningerberg, Luxembourg. Registration No B 37.799.