Schroders is today announcing the UK launch of the Schroder Emerging Markets Value fund, designed to capitalise on growing UK client demand for exposure to the long-term growth potential of emerging markets.
The strategy was first launched by Schroders in September 2020 as part of its SISF range. It has now been made available to UK investors. The fund is run in a contrarian way, supported by its fundamental deep-value investment philosophy and long-term investment horizon. Its process follows a strict valuation discipline which only invests in assets the managers believe are sufficiently undervalued.
The fund, which has an unconstrained, bottom-up stock picking approach, currently invests in 41 holdings across 10 sectors in 17 countries, including China, Mexico, Nigeria, and Brazil amongst others. It aims to deliver the best risk adjusted returns against its MSCI Emerging Markets benchmark.
Since launch, this successful investment philosophy has delivered a +16.7% per annum relative return against this benchmark, while absolute returns have compounded at +18.2% annualised.
Vera German, Fund Manager of the Schroder Emerging Market Fund, said:
“Over the past 20 years, value investing has proven itself to be an extremely strong returning style in emerging markets. Following demand from our UK-based clients to access this strategy, we are delighted to be announcing the launch of an onshore vehicle, which will provide UK investors with an opportunity to access a highly successful platform.
“What really differentiates our strategy from most other investors approaching emerging markets is that, whereas most of our peers are top-down macro driven, trying to get the country macro right and then doing the stock picking in those countries, we are bottom-up investors going first to where value has been identified and building our portfolios one stock at a time.”
Juan Torres, Fund Manager of the Schroder Emerging Market Fund, said:
“Vera and I have more than a combined 30 years of investment experience and having both grown up in emerging markets, we are able to bring an authentic bottom-up stock picking approach that has so far seen us deliver impressive performance. We believe that our flexible all-cap approach, in comparison to a number of peers that have a structural large-cap bias, has allowed us to deliver a concentrated high conviction portfolio that, first and foremost, offers clients exposure to unrivalled value opportunities.”
The Schroders Value Team manages $13bn assets in a contrarian, low turnover and pure value style.
