Fund Rationale: Schroder Global Emerging Market Opportunities Fund

Schroder Global Emerging Markets Opportunities Fund (the “Fund”)
SGD Retail Accumulation Shares (ISIN: SG9999006852)
Fund Manager Page
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Endowus has selected the Fund as it: 

  • Offers investors exposure to a broad range of emerging market equities
  • Has been a consistent out-performer relative to peers in the same group, especially over longer periods of time
  • Has a good drawdown profile that is superior to peers in both the absolute drawdown % and time period
  • Benefits from a stable and competent portfolio management team that has remained unchanged since fund inception
  • Retail share class with 100% trailer fee rebated back to Endowus investors to achieve lower cost of access

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Key Information

Fund Objective: Aims to provide capital growth and income by investing in equity and equity-related securities of companies in emerging market countries worldwide.

Suitability: Investors who are seeking long-term capital growth, seek regular income through periodic distributions, and understand the risks of investing in emerging markets equities.

The Fund is on the CPF Investment Scheme - List A Fund, and is included under the CPF Investment Scheme for Ordinary Account. It has been classified by the CPF Board under the risk classification of “Higher Risk – Narrowly Focused (Regional, Emerging Market).”

Cost (Cash/SRS):
Schroder_Global_Emerging_Markets_Opportunities_Fund_Cost_CashSRS.png

  1. Total Fund-level Fees include fund management fee of 1.20%.
  2. This is a retail share class with 100% trailer fee rebated back to Endowus investors to lower the cost of access.
  3. Endowus does not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Cost (CPF):
Schroder_Global_Emerging_Markets_Opportunities_Fund_Cost_CPF.png

  1. Total Fund-level Fees include fund management fee of 1.20%.
  2. This is a retail share class with 100% trailer fee rebated back to Endowus investors to lower the cost of access.
  3. Endowus does not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee. CPF investors receive a higher rebate as a result of a preferential rebate negotiation between Endowus and the fund management company.

Fund Characteristics

Fund Inception: 7 October 2010
Share Class Inception: 7 October 2010
Benchmark: MSCI Emerging Markets Index

Fund AUM: SGD 122m
Source: MorningStar as of 2 August 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:
Schroder_Global_Emerging_Markets_Opportunity_Fund_Region.png

Sector Allocation:
Schroder_Global_Emerging_Markets_Opportunity_Sector.png

Source: MorningStar as of 30 June 2021. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown.

Selection Criteria

The Schroder Global Emerging Markets Opportunities Fund is managed by an experienced pair of portfolio managers who have led the strategy  since its inception in 2007.  The portfolio managers are part of a large emerging market equities team that have an average of 15 years’ investment experience. There are five other portfolio managers and they are supported by more than 30 analysts and three investment directors.  The team employs an approach that ensures at least two team members have a view on each stock proposed for or held in the portfolio – a global portfolio manager and an analyst. All team members attend and contribute to the monthly strategy meetings at which country allocation is decided and the global emerging markets portfolio managers work closely with the relevant analysts and regional portfolio managers when constructing portfolios for each country.

The team uses a proprietary quantitative model to guide country allocation. This model derives inputs from the four groups of factors above that are scored to produce a ranking of the countries in the global emerging market. The model is updated on a monthly basis with inputs sourced from third parties and independent of Schroders’ views. Stock analysis involves idea generation from many  sources including an ongoing programme of company engagement, analysts’ core coverage requirement, macroeconomic assessments, and Schroders’  experienced investment professionals. ESG factors are integrated into the investment process with a centralised team of more than 20 data scientists also assisting the team to incorporate alternative data sources and sophisticated data science techniques into their analyses. 

Investing in emerging market equities has been tough over the past decade or so, evidenced by the general underperformance of emerging market equities as compared to their developed peers. Nevertheless, the fund has managed to sustain a long period of relative outperformance when compared to its peers and the index. The fund’s strong risk-reward profile and excellent drawdown control further positions the fund well to investors as an attractive source of exposure to global emerging market equities.  

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Updated by Endowus: August 2021

** Disclaimer: Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.
The prospectus, profile statement, product highlight sheet, fund factsheet or other offer or product documents may contain references about the expected risk tolerance of their target investors. These are in no way indicative of how we at Endowus have assessed your risk tolerance based on your stated objectives and financial situation. Endowus accepts no responsibility for investment decisions made in response to the expected risk tolerance levels mentioned in the product or offer documents.