Fund Rationale: Schroder ISF Global Sustainable Growth Fund

Schroder ISF Global Sustainable Growth
SGD Retail Class F Accumulation Shares (ISIN: LU2158556196)
Fund Manager Page

Endowus have selected the Fund because it has a disciplined proprietary ESG screening and analysis process, is managed by an experienced portfolio management team, and is accessible at a relatively low cost.

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Key Information

Fund Objective: Aims to provide capital growth by investing in equity and equity related securities of companies worldwide which meet the manager’s sustainability criteria.

Suitability: Investors who seek capital growth, understand the risks associated with investing in equity and equity related securities worldwide, and wish to invest in companies demonstrating positive sustainability characteristics, such as managing the business for the long-term, recognising its responsibilities to its customers, employees and suppliers, and respecting the environment.

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 – Broadly Diversified.”

Cost: 
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* Total Fund-level Fees include fund management fee of 1.30%.
** Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.
** For Cash/SRS investors only. CPF investors receive a higher rebate from the FMC and enjoy a lower net fund-level fees of 0.88% p.a.

Fund Characteristics

Fund Inception: 23 November 2010
Share Class Inception: 4 June 2020
Benchmark: MSCI All Country World Index

Fund AUM: SGD 1.8bn
Source: MorningStar as of 30 September 2020. Please refer to the FMC page for the most updated AUM.

Regional Allocation:

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Sector Allocation:

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Source: MorningStar as of 30 September 2020. 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

Endowus have selected the Schroder ISF Global Sustainable Growth Equity Fund for its proven track record, holistic ESG methodology, and low cost. The Fund was restructured from Schroder Global Demographic Fund in 2017, and since the transition, it has delivered superior risk-adjusted returns compared to its peers in the global large cap growth equity category. The Fund’s performance since 2010, despite the strategy change, is also better than its peers and is indicative of the portfolio management team’s capability as it is managed by the same team as before the transition. 

The Fund employs a disciplined investment process that integrates holistic ESG analysis. This is particularly important because there are many funds in the market that are labelled ESG but, in reality, take a superficial approach to ESG (greenwashing). The Fund’s full portfolio management team consist of an equal number of members from the equity team and from the sustainability team. Schroders define a sustainable company as a company that is managed for the long term and takes account of their impact on all stakeholders including employees, environment, supplier, customers, regulators and so on. Rather than relying on third party ESG data, the Fund uses internally developed ESG metrics complemented with the internally developed questionnaires that probe companies further on key sustainability-related issues. Only companies that pass the ESG assessment would be considered for further financial analysis. This eventually results in a high conviction portfolio of 30-50 names, and is positively tilted to growth and quality, and negatively tilted to value. 

Finally, we consider the pricing of the Fund very attractive - according to Morningstar, the average fee for the retail share class of a global large cap growth equity fund is 1.59% p.a., and the Fund comes at a fraction of this price.

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Updated by Endowus: January 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.