Schroder ISF* Global Sustainable Growth Fund

Invest in responsible and enduring businesses globally

The opportunity for active managers

The pandemic has put companies’ treatment of their stakeholders under greater scrutiny than ever before. Beyond government pressure to protect jobs, close attention is also being paid to how companies treat staff – these factors can have a major impact on a company’s financial performance.

Despite this, the market continues to largely focus on traditional financial metrics, persistently ignores these sustainability factors, and therefore can underestimate the fundamental value and long-term growth potential of a company. This market inefficiency creates investment opportunities for active investors, like Schroders, to capitalise on.

The fund focuses on identifying companies that have the best potential for sustainable growth and durable investment returns over the long-term, underpinned by strong relationships with all their stakeholders.

7 key stakeholders

Long-term value created through long-lasting relationships

The long-term success of a company is built on a complex ecosystem of sustainable behaviours that, when done right, creates real value both for the company and further afield.

Schroder ISF Global Sustainable Growth

An actively managed equity fund that scours the world for companies that are managed for the long-term and account for their impact on all stakeholders. We believe these sustainably-run companies are best placed to deliver superior growth and stable long-term returns for investors.

Why Schroder ISF Global Sustainable Growth?

A unique approach to building a sustainable portfolio

Moving away from just ‘box-ticking’, we use our proprietary Sustainability Quotient (SQ) framework to aid in our sustainability analysis. The framework is an in-depth, forward-looking, qualitative assessment comprising of 20 questions framed around 4 broad pillars. These are complex issues that require us to consult a wide range of resources and interact directly with companies to determine their sustainability profiles or flag out existing issues. The process is highly rigorous and stringent, with ~50% of companies rejected post-analysis.

No doubt, it is often difficult to quantify a companies’ relationship with key stakeholders and understand the direct impact our investments have on society and the environment. That is why, like our proprietary SQ framework, we have developed a set of proprietary tools called the ImpactIQ platform that are essential in our analysis and stock picking of the sustainability winners.

Undertake targeted company engagements

As an active, long-term manager, we see ourselves as owners of the companies we invest in. Engagement is therefore a crucial part of our process. We believe proactive engagement is effective in influencing company practices which can help improve shareholder returns and broader societal outcomes.

Collaboration between Schroders’ specialised investment teams

The Fund is a genuine collaboration between the Schroders’ Global & International Equity and Sustainability Teams, leveraging the strength of Schroders’ fundamental research resources and expertise on sustainability and stewardship.

The bottom-up research by our Global & International Equity team compliments the top-down thematic research (across areas, such as climate change, the use of plastics and cybersecurity) conducted by our dedicated Sustainability team.

Why Schroders?

A supporter of the UN Sustainable Development Goals, Schroders has:

  • 20+ years of ESG integration
  • 44 dedicated ESG specialists
  • Full ESG integration across our managed assets
  • A+ UN PRI annual assessment (2015-2020)

Schroder Global Sustainable Growth Fund

You can find more information on the fund including literature and performance data on our fund centre.

Portfolio Managers

Global Sustainable Growth

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Scott MacLennan

Portfolio Manager

Charles Somers

Portfolio Manager

Awards

FitchRatingsIMQRExcellent

Source: Fitch Ratings, as at 16 June 2021.

Disclosures

Schroder International Selection Fund is referred to as Schroder ISF throughout.

All visuals shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

The fund has environmental and/or social characteristics within the meaning of Article 8 of Regulation (EU) 2019/2088 on Sustainability-related Disclosures in the Financial Services Sector (the “SFDR”). For information on sustainability-related aspects of this fund, please go to www.schroders.com.

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Schroder International Selection Fund is referred to as Schroder ISF throughout this website.

For illustrative purposes only and does not constitute a recommendation to invest in the above-mentioned security / sector / country.

© Copyright 2020 Schroder Investment Management (Europe) S.A., German Branch is subject to the Luxembourg law dated 17 December 2010.