Schroder Asia Pacific Fund
The Schroder Asia Pacific Fund is actively managed, investing in a broad range of quality stocks across the Asia Pacific region excluding Japan and Australia. Investors can benefit from Schroders’ regional exposure, significant on the ground portfolio management and analysts based across multiple countries, recognising diverse cultural and language barriers and being locally present. This enables great understanding of market fundamentals and leads to successful investing with comprehensive risk control.
To outperform the MSCI AC Asia ex-Japan (NDR) Index by 2-3% after fees over the longer term.
- Exposure to Asia’s growth through quality company selection
- Active, unconstrained approach driven by in-depth proprietary research
- Strong regional presence with an experienced and well-resourced investment team
- Information advantage – over 5,300 company visits are conducted per year by analysts located in Asia (for year 2014)
- A disciplined and repeatable investment process with strong risk controls.
- Market risk: includes the risk of volatility and negative returns arising from investment markets.
- Equities risk: includes the risk that changes in share prices will negatively impact on the value of investments.
- International investments risk: includes the risk that international political, economic or currency events negatively impact the value of investments.
- Currency risk: includes the risk that foreign currency fluctuations may negatively impact on the value of investments to the extent that it is left unhedged.
For a comprehensive list of risks please refer to the PDS.
|Fund Inception date||7 April 1995|
|Valuation||Normally every business day|
Wholesale class - $20,000
|Buy/sell spread^||0.30% on application; 0.30% on redemption|
|Management costs (ICR)||
Wholesale class - 1.37% p.a.
|Distributions||Usually the last business day of June and December|
|Currency exposure||Currency hedging may be used from time to time up to a maximum of 20% of the value of the portfolio|
|mFund code||SCH42 (only wholesale class available)|
^Subject to change. Refer to the Buy/Sell spreads page in the Fund Centre
How the Fund is managed
Our philosophy can be described as an active fundamental approach with a focus on companies that grow shareholder value in the long term. We believe that equity markets are not efficient in Asia and that many of the best investment ideas are not well researched. Thus, to generate alpha over the long term, the best approach is to focus on bottom-up stock analysis.
Investments must firstly be of high quality, which we define by both the quality of earnings as well the quality of management, and secondly, the investments must exhibit structurally superior return profiles, which we define as those companies that can earn a higher return on investment capital than their weighted average cost of capital.
We also believe that investment requires discipline and skill. In terms of discipline, it is important to have a consistent and proven approach to valuing stocks. In terms of skill, it is critical to have experienced and knowledgeable professionals who understand the fair value of a company and are able to implement portfolio construction decisions effectively.
We believe that a strong locally-based analyst team ensures depth and breadth of coverage, and importantly, has the ability to identify unique opportunities.