Schroder ISF* Global Cities
Opportunity that never sleeps.Invest for profit with purpose.
Cities already generate more than 80% of world GDP and the real estate within them consistently outperforms national averages*. With urban migration set to increase, global cities will be the lifeblood of economic growth.
*Source: IBRD as at 20 April 2020
Global Cities are places where people want to live, work and play.
Their key characteristics are: strong infrastructure, diverse economies, advanced ESG polices, skilled labour force, and quality of life and culture.
Investing in real estate assets within these cities gives exposure to a diverse range of sectors.
Urbanisation is a powerful multi-decade theme
It's expected that by 2050, nearly 70% of the world's population (compared to 55% today) will reside in urban areas.
So knowing which cities stand to benefit from this demographic shift means investors can target the right opportunities.
Investing in real assets within these cities gives exposure to a diverse range of sectors (from data centres, self-storage and manufactured homes to conventional areas such as offices, retail and industrials) and access to economies that are expected to outperform national averages.
Global Cities also offer a solution to combatting climate change. With two thirds of carbon emissions focused on cities, the transition to net zero carbon and achieving the goals set out in The Paris Agreement would require changes to first be made in these cities that are backed by sustainability policies. A clear example of the impact cities can make is seen from C40, a network of the world’s megacities that are committed to addressing climate change.
These cities’ foundations lie in superior sustainability policies, strong infrastructure, diverse economies, skilled labour and a high quality of life. They attract the best talent worldwide, who contribute to continuing economic growth.
*Source: UN, as at May 2018
"Global Cities are those which capture the world's attention and investment, they are international hubs for individuals and businesses. It is in these cities you will find world-class universities and enterprises - with governments working hard to ensure they continue to thrive"
Schroder Global Cities Real Estate
You can find more information on the fund including literature and performance data on our fund centre.
Portfolio managers
Global Listed Real Assets
Analysts
Global Real Estate Securities, Global Listed Real Assets
Awards
Source: Fitch Ratings, as at 16 June.
Square Mile Investment Consulting and Research - Responsible A
Febelfin Towards Sustainability
During 2021 the Global Cities fund was subject to sustainability assessments from various parties. This analysis provides evidence of the rigour and extensive focus we apply in this crucial area.
In April the fund was awarded the Belgium Febelfin Towards Sustainability accreditation which signifies that it adheres to the highest quality standards for sustainable and socially responsible financial products.
In October the fund received a ‘Responsible A rating’ from Square Mile Investment Consulting and Research. The report stated that “ESG considerations are deeply embedded throughout the investment process, with the managers seeking to invest in sustainable real assets that enable society to meet its present needs without compromising the ability of future generations to meet theirs”.
Related pages
Risk considerations
Capital risk/distribution policy: As the fund intends to pay dividends regardless of its performance, a dividend may represent a return of part of the amount you invested.
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.
Emerging markets and frontier risk: Emerging markets and especially frontier markets, generally carry greater political, legal, counterparty, operational and liquidity risk than developed markets.
Currency risk/hedged share class: The hedging of the share class may not be fully effective and residual currency exposure may remain. The cost associated with hedging may impact performance and potential gains may be more limited than for unhedged share classes.
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.
Distribution Costs: The level of distribution costs in certain jurisdictions may impact the ability of the investment manager to meet the fund’s investment objective across all share classes after fees have been deducted.
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.
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.
Real estate and property risk: Real estate investments are subject to a variety of risk conditions such as economic conditions, changes in laws (e.g. environmental and zoning) and other influences on the market.
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.
Market risk: The value of investments can go up and down and an investor may not get back the amount initially invested.
Past performance is no guarantee of future performance. The value of investments and the income from them can go down as well as up, and you (or your clients) might not get back what you originally invested.
*Schroder International Selection Fund is referred to as Schroder ISF.
This advertisement has not been reviewed by the Monetary Authority of Singapore. This is prepared by Schroders for information and general circulation only and the opinions expressed are subject to change without notice. It does not constitute an offer or solicitation to deal in units of any Schroders fund (the “Fund”) and does not have regard to the specific investment objectives, financial situation or the particular needs of any specific person who may receive this. Investors may wish to seek advice from a financial adviser before purchasing units of any Fund. In the event that the investor chooses not to seek advice from a financial adviser, he should consider whether the Fund in question is suitable for him. Past performance of the Fund or the manager, and any economic and market trends or forecast, are not necessarily indicative of the future or likely performance of the Fund or the manager. The value of units in the Fund, and the income accruing to the units, if any, from the Fund, may fall as well as rise. Investors should read the prospectus, available from Schroder Investment Management (Singapore) Ltd or its distributors, before deciding to subscribe for or purchase units in any Fund. Funds may carry a sales charge of up to 5%.
The fund has the objective of sustainable investment within the meaning of Article 9 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.