Schroder Equity Opportunities Fund

 

An index unconstrained, all cap strategy managed by the highly rated Schroders Australian Equity team.

 

The Schroder Equity Opportunities Fund provides exposure to a range of Australian listed companies across the full market capitalisation spectrum. These companies are characterised by strong returns on capital and a sustainable business franchise - offering pricing power and control over business direction.

The key differentiating feature of the fund is that benchmark weightings are not considered during the portfolio construction process while the stock selection methodology has no size constraints, using the full universe of opportunities.

 

Investment Objective 

 

 

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Key features

 

Fund Inception date 14 December 2007
Valuation Every business day
Minimum investment Wholesale class - $20,000
Buy/sell spread^ 0.40% on application; 0.40% on redemption
Entry/exit fees Nil
Management costs (ICR) Wholesale class - 0.92% p.a.
Performance fee Plus a performance fee of 15.4% p.a. of gross out-performance above 2% p.a. (as calculated daily) over the S&P/ASX 300 Accumulation Index
Distributions Usually last business day of June and December
APIR code SCH0035AU
mFund code SCH22 

^Subject to change. Refer to the Buy/Sell spreads page in the Fund Centre

Who does this fund suit?

The Fund is suitable for Australian investors that are seeking a high conviction equity strategy but who do not want to sacrifice portfolio diversification opportunities which the broader market presents. 

Because the strategy will depart materially from benchmark performance, in both directions, it is suitable for those investors with appropriate time horizons and a tolerance and patience for index deviation.

Fund risks

Over the long term, equities have generally outperformed other asset classes, however returns can be volatile and negative returns are possible in the short to medium term. It is hence important to understand the risks associated with investing in the Fund. Schroders actively assesses and manages risk at every state of the investment process. The main risks specifically with investing in this strategy are market risk, equities risk, company risk, international risk, currency risk, derivatives risk, liquidity risk, counterparty risk, regulatory risk, administration risk and fund risk.

For further details about the risks of investing in this strategy please refer to the Product Disclosure Statement.

Performance of the Schroder Equity Opportunities Fund has been strong over its lifetime. Growth since inception (net of fees) has been ahead of the S&P/ASX Index, despite a period which includes the GFC and significant artificial stimulus via low interest rates and quantitative easing.

Investment Growth

 

Portfolio Positioning

 

Market capitalisation breakdown

 

Source: Schroders. Factset as at 30 June 2017

 

Sector breakdown 

 

Top 10 holdings

Source: Schroders. as at 30 June 2017

 

Martin is Head of Australian Equities and involved in the portfolio construction process for Australian Equity portfolios. Martin joined Schroders in 1994 and has 29 years industry experience, much of which was spent managing Australian Equities.

Andrew is Deputy Head of Australian Equities and involved in the portfolio construction process for Australian Equity portfolios. Andrew Joined Schroders in July 2007 and has 28 years industry experience managing large and small cap Australian Equities

The broader Schroder Australian equity team consists of 14 investment professionals, one of the largest teams in the market.

 
TitleInvestment ExperienceResponsibilities
Head of Australian Equities 29 years Diversified Financials, General Insurance, Life Insurance, Telecommunications & Engineering
Deputy Head of Australian Equities 28 years Building Materials, Chemicals, Steel, Online and Software & Education
Portfolio Manager 20 years Banks, Gaming, Finance (Small diversified financials)
Head of Research 21 years Energy, Coal, Diversified Mining, Iron Ore, Metals & Mining Services
Portfolio Manager 16 years Media, Healthcare, Paper & Packaging
Equity Analyst 18 years Infrastructure, IT Services, Property (inc Developers), Transport
Equity Analyst 10 years Utilities, Food Retail, Beverages, General Retail, Wealth Management
Equity Analyst 5 years Industrial, Construction services, Agriculture, Gold
Equity Analyst 7 years Tourism & Leisure sector, some consumer related stocks and niche metals
Quantitative Analyst
Data Scientist
Head of Trading
Equity Trader
Investment Director