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Schroder Equity Opportunities Fund

 

An index unconstrained, all cap strategy managed by the highly rated Schroders Australian Equity team.

 

An index unconstrained, all cap strategy managed by the highly rated Schroders Australian Equity team.

 The Schroder Equity Opportunities Fund provides exposure to a range of Australian listed companies across the full market capitalisation spectrum. These companies are characterised by strong returns on capital and a sustainable business franchise - offering pricing power and control over business direction.

The key differentiating feature of the fund is that benchmark weightings are not considered during the portfolio construction process while the stock selection methodology has no size constraints, using the full universe of opportunities.

This product is likely to be appropriate for a consumer seeking capital growth for a small component of their portfolio, with a high or very high risk and return profile. This product is unlikely to be suitable for a consumer seeking capital preservation or with a short investment timeframe.

Investment Objective 

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Key features

 

Fund Inception date 14 December 2007
Valuation Every business day
Minimum investment Wholesale class - $20,000
Buy/sell spread^ 0.30% on application; 0.30% on redemption
Entry/exit fees Nil
Management fees and costs* Wholesale class - 0.80% p.a.
Performance fee Plus a performance fee of 15.4% p.a. of gross out-performance above 2% p.a. (as calculated daily) over the S&P/ASX 300 Accumulation Index
Distributions Usually last business day of June and December
APIR code SCH0035AU
mFund code SCH22 

^Subject to change. Refer to the Buy/Sell spreads page in the Fund Centre

*Additional fees and costs may apply.  Please refer to the product disclosure statement for further details.

Who does this fund suit?

The Fund is suitable for Australian investors that are seeking a high conviction equity strategy but who do not want to sacrifice portfolio diversification opportunities which the broader market presents. 

Because the strategy will depart materially from benchmark performance, in both directions, it is suitable for those investors with appropriate time horizons and a tolerance and patience for index deviation.

Fund risks

Over the long term, equities have generally outperformed other asset classes, however returns can be volatile and negative returns are possible in the short to medium term. It is hence important to understand the risks associated with investing in the Fund. Schroders actively assesses and manages risk at every state of the investment process. The main risks specifically with investing in this strategy are market risk, equities risk, company risk, international risk, currency risk, derivatives risk, liquidity risk, counterparty risk, regulatory risk, administration risk and fund risk.

For further details about the risks of investing in this strategy please refer to the Product Disclosure Statement.

Performance of the Schroder Equity Opportunities Fund has been strong over its lifetime. Growth since inception (net of fees) has been ahead of the S&P/ASX Index, despite a period which includes the GFC and significant artificial stimulus via low interest rates and quantitative easing.

Investment Growth

Source: Schroders, FactSet as at 30 June 2019

Portfolio Positioning

Source: Schroders, FactSet as at 30 June 2019

Sector breakdown 


Source: Schroders, FactSet as at 30 June 2019

Largest positions vs ASX 300

Source: Schroders as at 30 June 2019.  All security information is for illustrative purposes and is subject to change at any time. Not to be considered a recommendation to buy/sell.

 

Martin is Head of Australian Equities and involved in the portfolio construction process for Australian Equity Core and Opportunities portfolios, while also retaining analytical responsibilities for Accounting Software, Chemicals/Fertiliser, Diversified Financials & Food Retailing sectors. Martin joined Schroders in 1994 and was promoted to Head of Australian Equities in October 2003.  Prior to joining Schroders, he was an accountant at Ernst & Young.  He holds a Bachelor of Economics from Macquarie University, a Graduate Diploma in Applied Finance and Investment and is a qualified Chartered Accountant.

Andrew is Deputy Head of Australian Equities and involved in the portfolio construction process for Australian Equity Core and Opportunities portfolios, in addition to analytical responsibilities for the Agriculture, Building Materials, Education, Steel & Waste sectors. Andrew joined Schroders in July 2007. Prior to joining Schroders, Andrew was Head of Australian Equities at Credit Suisse Asset Management. He holds a Bachelor of Commerce and Bachelor of Arts from the University of Queensland and a Master of Economics from Macquarie University.

The broader Schroder Australian equity team consists of 12 investment professionals, one of the largest teams in the market.

 
Title Investment Experience Responsibilities

Head of Australian Equities

33 years

Accounting Software, Chemicals/Fertiliser, Diversified Financials, Food Retailing

Deputy Head of Australian Equities 33 years

Agriculture, Building Materials, Education, Steel, Waste

Portfolio Manager 25 years

Bulk mining, Coal, Copper, Diversified Mining, Energy Markets, Iron Ore, Metals, Nickel, Oil & Gas

Head of Research 25 years

Banks, Gaming & Finance 

Portfolio Manager 20 years

Auto Dealers, Gold, Healthcare Providers/Logistics, Media, Packaging, Retirement & Aged Care, Software

Equity Analyst 22 years

Auto, Consumer/Building Products, Infrastructure, Miscellaneous Industrials, Payments, Property Trusts - Diversified, Property Trusts - Retail, Transport

Equity Analyst 28 years

General Insurance, Healthcare Devices/Products, Property Trusts - Industrial, Property Trusts - Office, Property Trusts - Specialised

Equity Analyst 14 years

Developer/Construction, Industrial & Construction Services, Mining Services, Telecommunications & Wealth Management

Equity Analyst 12 years

Beverages, Food Manufacture, General Retail, Gold, Niche Commodities, Tourism & Leisure, Utilities

Quantitative Analyst 24 years  
Data Scientist 13 years  
Head of Trading 21 years  
Equity Trader 9 years  
Associate Investment Director  14 years