Schroder Equity Opportunities Fund

 

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.

 

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 costs (ICR) Wholesale class - 0.92% 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

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 portfolios, while also retaining analytical responsibilities for Diversified Financials, General Insurance and Telecommunications. 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 portfolios, in addition to analytical responsibilities for the Building Materials, Chemicals, Steel, Education and 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 University of Queensland and a Master of Economics from Macquarie University. 

The broader Schroder Australian equity team consists of 14 investment professionals, one of the largest teams in the market.

 
Title Investment Experience Responsibilities
Head of Australian Equities 31 years Diversified Financials, General Insurance, & Telecommunications 
Deputy Head of Australian Equities 33 years Building Materials, Chemicals, Steel, Education & Waste
Portfolio Manager 23 years Banks, Gaming & Finance 
Head of Research 23 years Oil & Gas, Metals & Mining (excluding gold) & Mining Services
Portfolio Manager 18 years Media, Online, Software, Retirement & Aged Care
Equity Analyst 20 years Property, Infrastructure, Transport, IP & Legal 
Equity Analyst 26 years Healthcare, Food Retailing, Auto, Wealth Management
Equity Analyst 5 years Industrial & Construction Services, Agriculture, Packaging & Gold
Equity Analyst 10 years Tourism & Leisure, Utilities, Consumer (excluding food retailing) & Niche Metals
Quantitative Analyst 23 years  
Data Scientist 11 years  
Head of Trading 19 years  
Equity Trader 9 years  
Associate Investment Director  14 years