Investment highlights

-   Single point of access to an optimal blend of Schroders' alpha 
-   Bespoke approach to isolating long-only alpha and blending it with conventional long-short
-   Market neutral approach that seeks to deliver robust returns with low correlation to markets
-   Attractive return profile across the market cycle with over 70% idiosyncratic alpha
-   Predominantly equities – with ability to incorporate diversifying non-equity strategies
-   Utilises established and existing Schroders’ investment talent
-   A global approach – with tilt to Asia (inc Japan), EM, and Europe (inc UK)
-   Schroders seeding the product with $200m of its own capital

 

Expected characteristics

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Blending Schroders’ alpha engines

The fund combines conventional long-short equity strategies with long-only equity alpha strategies. In long-only alpha, the aim is to extract the excess returns generated by our long-only managers by replicating their long positions and then selecting bespoke shorts to hedge out their market or factor risk.

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Source: Schroders as at 30 November 2018

Meet the manager

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Robert Donald

Chief Investment Officer, Schroder GAIA Helix

  • Robert has 30 years of experience in the Capital Markets.
  • Robert has worked in Corporate Finance, Equity Research and Fund Management within the Alternatives market.
  • He started at NatWest Markets in Corporate Finance and moved to Equity Research where he was ranked number one in numerous surveys (Extel, Reuters, Institutional Investor) in his sector of coverage.
  • In 1997 he joined Schroders Securities which was acquired by Citigroup in 2000.
  • He moved to the buy-side in 2003 where he joined GLG Partners. He was a Portfolio Manager from late 2003 and became co-manager of a multi-manager fund within GLG Partners.
  • He then joined Soros in 2010 and Brummer in 2014; where he worked as a Portfolio Manager.
  • He joined Schroders in January 2017 to lead on the development of Helix.

Source: Schroders as at 30 Nov 2018

Special disclosure

Schroder Investment Management Limited has appointed the following Sub-Investment Manager for Schroder GAIA Helix. This shall also be published in the annual and semi-annual reports of the Company.

- Bennbridge Limited

Risk Considerations

  • Mortgage or asset-backed securities may not receive in full the amounts owed to them by underlying borrowers.
  • The fund may be significantly invested in contingent convertible bonds. If the financial strength of a bond's issuer (typically a bank or an insurance firm) falls in a prescribed way the bond may suffer substantial or total losses of capital.
  • Changes in China's political, legal, economic or tax policies could cause losses or higher costs for the fund.
  • The counterparty to a derivative or other contractual agreement or synthetic financial product could become unable to honour its commitments to the fund, potentially creating a partial or total loss for the fund.
  • A failure of a deposit institution or an issuer of a money market instrument could create losses.
  • A decline in the financial health of an issuer could cause the value of its bonds to fall or become worthless.
  • The fund can be exposed to different currencies. Changes in foreign exchange rates could create losses.
  • A derivative may not perform as expected, and may create losses greater than the cost of the derivative.
  • Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty and operational risk.
  • Equity prices fluctuate daily, based on many factors including general, economic, industry or company news.
  • High yield bonds (normally lower rated or unrated) generally carry greater market, credit and liquidity risk.
  • A rise in interest rates generally causes bond prices to fall.
  • The fund uses derivatives for leverage, which makes it more sensitive to certain market or interest rate movements and may cause above-average volatility and risk of loss.
  • 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.
  • The fund allocates capital to multiple strategies managed by separate portfolio managers who will not coordinate investment decisions, which may result in either concentrated or offsetting risk exposures.
  • Failures at service providers could lead to disruptions of fund operations or losses.
  • 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.
  • The fund may take positions that seek to profit if the price of a security falls. A large rise in the price of the security may cause large losses.

 

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