Schroder ISF* Smart Manufacturing
Enter the world of the new industrial renaissance todayOur approach
We have entered a fourth industrial revolution where we are seeing mass innovation, such as advanced robotics in hardware, productivity maximising software, and lightweight smart materials.
The speed of this revolution is unprecedented and accelerating, and its breadth and depth is transforming the entire manufacturing value chain.
We see compelling investment opportunities from those innovators driving this manufacturing renaissance
Innovation is powering a 4th industrial revolution, a new era of “smart manufacturing”. With COVID increasing demand for digitisation, automation and efficiency, the theme is well positioned to take off now.
Spotting early on the innovators and enablers positioned to capitalise from the increasing adoption of smart manufacturing creates opportunities for long term capital growth.
View fund information
Helping companies improve profitability
Smart manufacturing makes more economic sense than ever. Tech and the availability of actionable data is enabling production efficiencies, cutting waste and downtime, reducing energy consumption and driving innovation across the entire manufacturing value chain. Together, these advances are boosting productivity and ultimately profitability.
Addressing demographic imperatives
Smart manufacturing is helping to maintain growth in the face of ageing populations and widening skills gaps. Automation plays a big role in this and 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 have led to entirely new jobs being created, as they open up further innovation and previously unthought-of opportunities.
Building a more sustainable world
Smart manufacturing helps build a more sustainable future. Companies are not only making better things; they are also making things better. By cutting energy consumption and waste, carbon footprints can be radically reduced. For example, innovative materials help create cheaper and stronger composites. These are lightweight and energy efficient, bringing material fuel savings.
Meet the Manager
Portfolio manager Dan McFetrich is supported by Schroders' global resources to identify the companies best placed to capture the innovators driving this manufacturing renaissance
Dan McFetrich
Global Sector Specialist
Risk considerations
*Schroder International Selection Fund is referred to as Schroder ISF.
- 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.
- 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.
- 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.
- Sustainability risk: The fund has environmental and/or social characteristics. 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.
- 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.
- 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.
Important information:
For professional investors and advisers only. The material is not suitable for retail clients. We define "Professional Investors" as those who have the appropriate expertise and knowledge e.g. asset managers, distributors and financial intermediaries
This information is a marketing communication. This information is not an offer, solicitation or recommendation to buy or sell any financial instrument or to adopt any investment strategy. Information herein is believed to be reliable but we do not warrant its completeness or accuracy. Schroders has expressed its own views and opinions in this document and these may change. 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 any overseas investments to rise or fall. Past Performance is not a guide to future performance and may not be repeated. 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.
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Issued in March 2023 by Schroders Investment Management Ltd registration number: 01893220 (Incorporated in England and Wales) which is authorised and regulated in the UK by the Financial Conduct Authority and an authorised financial services provider in South Africa FSP No: 48998.