Schroder ISF QEP Global Emerging Markets has delivered +3.7 per cent in the two years since launch, with the wider strategy raising over USD2 billion of assets.
The fund – which is managed by Schroders’ QEP investment team – offers investors a different way of accessing the emerging market opportunity set.
Based on the team’s track record of managing emerging markets through its global equity fund range, it combines diversification with a high conviction, all-cap approach.
Justin Abercrombie, head of QEP investment, says: “We have been really pleased with the response we’ve had so far. We’re now managing over USD2 billion for clients globally in the strategy and USD345 million in the Luxembourg fund. Our focus is on delivering higher returns than the index by identifying stocks which are attractive in terms of their valuation and business quality. We’re investing outside of the concentrated confines of the backward-looking emerging market index, looking for emerging growth opportunities.”
The team analyses a broad investment universe of over 4,000 stocks across more than 20 emerging markets and invests in a portfolio of over 300 stocks, selected on the basis of valuation and business quality (defined on measures of profitability, stability and financial strength). While stock selection is the key driver of fund returns, country risk is also managed by the team using a proprietary framework.
Miles O'Connor, head of Pan-European institutional distribution, says: "The asset class has faced a number of challenges in recent times and we are seeing clients re-appraise previously successful emerging market equity managers who are now managing a substantial amount of assets. In this environment we are delighted to be able to offer our clients a highly scalable fund, run by a highly experienced team, which really stands out from the crowd. A genuine all-cap proposition, the outperformance generated since the fund’s launch is testament to Justin’s and his team’s skills in terms of both stock selection and portfolio construction.”