Emerging Markets Equity Alpha
The Schroder Emerging Markets Equity Alpha strategy aims to provide exposure to a concentrated, style agnostic portfolio of high conviction stock ideas in emerging and frontier markets. The objective of the strategy is to provide capital growth by investing in equities of companies in emerging and frontier market countries worldwide and to outperform the MSCI Emerging Markets Index (Net TR), although this cannot be guaranteed.
- Aims to provide capital growth by investing in Schroders Emerging Market Equities Team’s highest conviction stock ideas in emerging and frontier markets
- Bottom-up and style agnostic approach
- Concentrated portfolio of 40-60 stocks
- Consensus required from both named portfolio managers
- Rigorous and proactive risk management, including tracking
error target and a stock stop-loss review policy*
*This is not guaranteed and may be temporarily
suspended during periods of market volatility.
The Global Emerging Market Equities team is made up of more than 45 investment professionals with an average of 14 years of investment experience. The team has a centralized asset allocation function in London, with stock analysts based in regional offices around the world. The fund is managed by two experienced portfolio managers, Robert Davy and Waj Hashmi. As Head of Emerging Markets Equity, Tom Wilson has oversight responsibility. Please note, however, that we take a team based approach to the management of all emerging market equity portfolios.
The Schroder Emerging Markets Equity Alpha strategy targets alpha generation from bottom-up stock selection, based on fundamental analysis by our large team of analysts, many of whom are locally based. The process focuses on the team’s top graded stocks across emerging and frontier markets. Proactive risk management is integrated to produce a concentrated, high conviction portfolio with no systematic style bias.
The Schroder Global Emerging Markets Alpha Strategy targets alpha generation from bottom-up stock selection, based on fundamental analysis by our large team of analysts, many of whom are locally based. The process focuses on the team’s top graded stocks across emerging and frontier markets. Proactive risk management is integrated to produce a concentrated, high conviction portfolio with no systematic style bias.
Stock analysis is based on fundamental research conducted by our in-house analysts, who are based globally in seven different locations. We therefore benefit from both the scale of the research team and their local knowledge of companies and markets.
Source: Schroders, for illustration purposes only.
Portfolio construction begins with the identification of all the highest graded stocks across the investment universe. With careful consideration of the analysts’ work, the fund managers conduct a qualitative assessment to select the best ideas. The fund managers take a global view to identify the stocks with the greatest return potential, taking into account potential upside, the style mix of the portfolio, conviction triggers and timescale. The two fund managers will then agree on the best ideas to be included in a portfolio of 40-60 stocks. The process is style agnostic, though allocation to style categories is monitored.
- We target added value from bottom-up stock selection driven by in-house fundamental research, to build a concentrated portfolio with no style bias.
- Rigorous active risk management including tracking errors and a stock stop-loss review policy, which are monitored continuously on several levels
- Significant global resources, including an experienced investment team based across eight locations worldwide
- Portfolio tracking error range of 3-7%
- Active share target ≥ 80%
- Separate Accounts