Schroder ISF* Smart Manufacturing

Find compelling investment opportunities among the innovators driving a manufacturing renaissance.

Welcome to the fourth industrial revolution

Advanced robotics in hardware. Productivity maximising software. Lightweight smart materials. We’re on the cusp of a manufacturing renaissance, driven by smart technologies and moving at unprecedented – and accelerating – speed.

*Schroder International Selection Fund is referred to as Schroder ISF.

What’s smart manufacturing all about?

The automation revolution offers long-term growth opportunities for those who act early

Why investors should take note

Portfolio manager, Dan McFetrich, introduces us to a manufacturing renaissance

Looking for the early innovators

In a world with increased demand for digitisation, automation and efficiency, the innovators and experts in this field are well-positioned to take off. So who are these new adopters and enablers?

We spot those positioned to capitalise on increasing adoption of smart manufacturing, to target long-term capital growth.

Benefit from diversification across 5 sub-themes

  1. Data analytics and software: predictive maintenance, optimising production
  2. Advanced manufacturing: agile production systems, lasers
  3. Advanced materials: light weighting, nanoengineered materials
  4. Automation: robotics, sensors and controls
  5. Domain experts: leveraging prop tech, unique installed base

With greater efficiency comes greater reward

Smart manufacturing makes more economic sense than ever. Tech and abundant, actionable data make production more efficient. They cut waste and downtime - saving energy and driving innovation across the entire manufacturing value chain. So boosting productivity and ultimately profitability.

Smart manufacturing helps build a more sustainable future too

Companies are not only making better things; they are also making things better. By slashing energy consumption and waste, carbon footprints radically reduce. Innovative materials also help create cheaper and stronger composites that are lightweight and energy efficient.

Embrace growth in the face of aging populations and widening skills gaps

It makes sense for machines to step in and do the work that would be potentially dull, or even dangerous, for a human to do. These technological advances lead to entirely new jobs, as they open up further innovation and previously unthought-of opportunities.

Fund objectives and investment policy

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

Read more about Schroder ISF Smart Manufacturing

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Schroder ISF Smart Manufacturing

Portfolio manager

Schroder ISF Smart Manufacturing

Daniel McFetrich

Global Sector Specialist

“We think this transformation of factories, warehouses and industrial assets will last for years. It will revolutionise not just how we manufacture but how distribute, design and monitor assets in the field. The increasingly quick paybacks on these investments, faster and more reliable communications networks, and ageing demographics all mean the desire and need to invest is accelerating now.”

Daniel McFetrich

Global Sector Specialist

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.

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.

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.

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.

Higher volatility risk: The price of this fund may be volatile as it may take higher risks in search of higher rewards.

Market risk: The value of investments can go up and down and an investor may not get back the amount initially invested.

Stock connect risk: The fund may be investing in China "A" shares via the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect which may involve clearing and settlement, regulatory, operational and counterparty risks.

Important information

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 may be obtained in English, free of charge, from the following link:

For the UK, these documents may be obtained in English, free of charge, from the following link:

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 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

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. 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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