Schroder ISF* Global Sustainable Growth
Investing in the world’s most responsible and enduring businessesOur approach
Sustainability, at its heart, concerns the durability of growth and returns. It’s what makes a great company stay great. This strategy seeks to invest in truly responsible companies that are managed for the long term, recognise their responsibilities to customers, employees and suppliers, and respect the environment. We believe that companies with these qualities have the ability to consistently deliver outsized growth over time.
The fund aims to provide capital growth by investing globally in shares of sustainably-run companies. These are companies that are managed for the long term and account for the interests of all stakeholders, including wider society.
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Patient capital, high conviction strategy
Global Sustainable Growth is a patient capital, high-conviction (30-50 stock) global equity strategy that believes long-term value creation is shaped by a company’s relationships with its stakeholders. We believe that good corporate citizenship is an important driver of long-term earnings durability and alpha generation. We are focused on identifying those businesses that are willing to invest for the long term, for change and to create sustainable business models.
Proprietary framework to assess sustainability
A detailed, holistic and qualitative assessment of the sustainability of a company’s business model and growth prospects is incorporated via our proprietary Sustainability Quotient (SQ) framework. This evaluation, designed to impose a high bar for inclusion, expands upon the proprietary ESG analysis already integrated within Schroders’ Global Equities team’s investment process and provides a more comprehensive and rigorous assessment of companies’ commitment to long-term value creation.
Strong focus on engagement
As long-term shareholders, we regard ourselves as an active owner of the companies in which we invest. Engagement is therefore central to the strategy’s approach; we believe we can make positive changes to company practices and serve to improve shareholder returns and broader societal outcomes. Engagement priorities are determined by the Sustainable Growth Investor Group and progress reported routinely as part of the strategy’s standard reporting output.
Unique collaboration between experienced specialists
Ultimate responsibility for the strategy resides with the portfolio managers, but idea generation, stock selection and portfolio composition are the result of collaborative work between Schroders’ Global Equities team, network of global analysts and broader resources including the Sustainability team.
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Risk considerations
*Schroder International Selection Fund is referred to as Schroder ISF.
- Counterparty risk: The fund may have contractual agreements with counterparties. If a counterparty is unable to fulfil their obligations, the sum that they owe to the fund may be lost in part or in whole.
- Currency risk: The fund may lose value as a result of movements in foreign exchange rates.
- Derivatives risk – efficient portfolio management: Derivatives may be used to manage the portfolio efficiently. A derivative may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the fund.
- Emerging Markets & Frontier risk: Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty, operational and liquidity risk than developed markets.
- IBOR risk: The transition of the financial markets away from the use of interbank offered rates (IBORs) to alternative reference rates may impact the valuation of certain holdings and disrupt liquidity in certain instruments. This may impact the investment performance of the fund.
- Liquidity risk: 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.
- Market risk: The value of investments can go up and down and an investor may not get back the amount initially invested.
- Operational risk: Operational processes, including those related to the safekeeping of assets, may fail. This may result in losses to the fund.
- Performance risk: Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro economic environment, investment objectives may become more difficult to achieve.
Important information:
For professional investors and advisers only. The material is not suitable for retail clients. We define "Professional Investors" as those who have the appropriate expertise and knowledge e.g. asset managers, distributors and financial intermediaries
This information is a marketing communication. This information is not an offer, solicitation or recommendation to buy or sell any financial instrument or to adopt any investment strategy. Information herein is believed to be reliable but we do not warrant its completeness or accuracy. Schroders has expressed its own views and opinions in this document and these may change. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall. Past Performance is not a guide to future performance and may not be repeated. This document does not constitute an offer to anyone, or a solicitation by anyone, to subscribe for shares of Schroder International Selection Fund (the “Company”). Nothing in this document should be construed as advice and is therefore not a recommendation to buy or sell shares.
Subscriptions for shares of the Company can only be made on the basis of its latest Key Investor Information Document and prospectus, together with the latest audited annual report (and subsequent unaudited semi-annual report, if published), copies of which can be obtained, free of charge, from Schroder Investment Management (Europe) S.A.
Issued in March 2023 by Schroders Investment Management Ltd registration number: 01893220 (Incorporated in England and Wales) is authorised and regulated in the UK by the Financial Conduct Authority and an authorised financial services provider in South Africa FSP No: 48998.