Schroder Global Emerging Markets Fund
The Schroder Global Emerging Markets Fund provides exposure to a range of developing countries around the world characterised by a stronger growth potential than mature economies. These emerging countries provide the opportunity for premium returns although with higher risks relative to developed countries. The investable universe is commonly defined by the MSCI Emerging Markets Index.
To outperform the MSCI Emerging Markets Index (net dividends reinvested) after fees over rolling 3 year periods.
Country allocation is important in emerging markets
- Targets 50% added value added from country and 50% from stock decisions
- Proprietary quantitative country model drives country decisions and detailed fundamental research drives stock selection
- Rigorous pro-active risk management, including alpha-adjusted tracking errors and a stock stop loss rule*
* This is not guaranteed and may be temporarily suspended during periods of market volatility.
Resourced to fully cover the universe essential
- World class team of 41 investment professionals, average 14 years’ experience (as at 30 June 2015)
- Stock analysts based locally with asset allocation and portfolio construction centralised in London
- Efficient matrix team structure
Strong commitment to emerging markets
- Emerging Market Analysts based globally in eight locations
- Central economics team based in London
- Global platforms for dealing, settlement, risk, research and performance
- 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||25 October 2006|
|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% p.a.
|Distributions||Usually the last business day of June and December|
|mFund code||SCH41 (only wholesale class available)|
^Subject to change. Refer to the Buy/Sell spreads page in the Fund Centre
How the Fund is managed
- We believe that emerging stock markets are inefficient and provide strong potential for adding value through active fund management.
- Schroders has a balanced approach to investing in Emerging Market equities. We use a mix of top down analysis and bottom up stock selection and look to derive 50% of our added value from country selection and 50% from stock selection.
- We believe that it is inappropriate to apply a systematic style bias across so many countries at such different stages of development. However, given our strong analytical resources we would expect to generally have a bias towards medium capitalisation stocks which should provide extra return potential. We believe that as fund managers we should manage both return and risk.
- Our aim is to achieve returns with the minimum level of risk through a pro-active approach to risk control. We believe that applying a systematic, disciplined approach, with a strong team culture increases our ability to add value.