Investment highlights

-   Single point of access to an optimal blend of Schroders' alpha 
-   Bespoke approach to isolating long-only alpha and blending it with conventional long-short
-   Market neutral approach that seeks to deliver robust returns with low correlation to markets
-   Attractive return profile across the market cycle with over 60% idiosyncratic alpha
-   Predominantly equities – with ability to incorporate diversifying non-equity strategies
-   Utilises established and existing Schroders’ investment talent
-   A global approach – with tilt to Asia (inc Japan), EM, and Europe (inc UK)
-   Schroders seeding the product with c. $200m of its own capital

 

Expected characteristics

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Blending Schroders’ alpha engines

Schroder GAIA Helix has the flexibility to invest across a multitude of strategy types; long-only hedged, long short, systematic and non-equity. Uniquely we utilise our breath of long-only talent in a hedged manner, in order to extract their excess returns by removing their broad market beta. This is blended with our conventional long short, systematic and non-equity strategies to provide a diversified range of alpha sources.

The fund is managed by an experienced central team, who determine strategy allocations and manage the overall risk of the fund via a central overlay portfolio.

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Source: Schroders as at 19 May 2020

See the manager share some insights on the fund

What is Schroder GAIA Helix?

Robert shares some key expected characteristics of the fund.

Why multi-strategy and why now?

Andrew and Robert explain the reason behind the launch of Schroder GAIA Helix.

Why Schroders for multi-strategy?

Robert explains the skillsets Schroders has to successfully manage a multi-strategy fund.

What is Schroders' edge for hedge funds?

Robert describes what differentiates Schroders from others.

What makes the fund unique?

Robert shares Schroder GAIA Helix's unique features.

What is the strategy selection process?

Robert explains the strategy selection process for the fund.

Meet the manager

Robert Donald

Chief Investment Officer, Schroder GAIA Helix

  • Robert has 30 years of experience in the Capital Markets.
  • Robert has worked in Corporate Finance, Equity Research and Fund Management within the Alternatives market.
  • He started at NatWest Markets in Corporate Finance and moved to Equity Research where he was ranked number one in numerous surveys (Extel, Reuters, Institutional Investor) in his sector of coverage.
  • In 1997 he joined Schroders Securities which was acquired by Citigroup in 2000.
  • He moved to the buy-side in 2003 where he joined GLG Partners. He was a Portfolio Manager from late 2003 and became co-manager of a multi-manager fund within GLG Partners.
  • He then joined Soros in 2010 and Brummer in 2014; where he worked as a Portfolio Manager.
  • He joined Schroders in January 2017 to lead on the development of Helix.

Darren Hodges

Co-portfolio Manager, Schroder GAIA Helix

  • Darren started his career in 1991 at Swiss Bank Corporation within the equity derivatives department.
  • He became a managing director and headed up sales and trading for the European equity flow derivatives business.
  • In 2005, Darren joined GLG Partners as a portfolio manager and derivative advisor to the European equity team. He ran a derivatives based long-short strategy.
  • He became the co-head of GLG’s flagship European Long Short fund in 2010.
  • His role within the active risk management team included, identifying extreme fund risks, creating overlays for the product, working closely with the portfolio managers to optimise their risk return profile and working closely with the sell side to ascertain themes, positioning and risks that might impact the portfolio.
  • Darren joined Olivetree financial in 2016 as a managing director, with a mandate to build out an equity derivatives sell side offering
  • He joined Schroders in 2017, to work alongside Robert on the Helix product.

Source: Schroders as at 19 May 2020

Special disclosure

Schroder Investment Management Limited has appointed the following Sub-Investment Manager for Schroder GAIA Helix. This shall also be published in the annual and semi-annual reports of the Company.

  • Bennbridge Limited
  • Schroder Investment Management (Singapore) Limited

Risk Considerations

  • ABS and MBS risk: Mortgage or asset-backed securities may not receive in full the amounts owed to them by underlying borrowers.
  • Contingent convertible bonds: The fund may invest in contingent convertible bonds. If the financial strength of the issuer of a contingent convertible bond falls in a prescribed way, the value of the bond may fall significantly and, in the worst case, may result in losses to the fund.
  • Counterparty risk: The fund may have contractual agreements with counterparties. If a counterparty is unable to fulfil their obligations, the sum that they owe to the fund may be lost in part or in whole.
  • Credit risk: A decline in the financial health of an issuer could cause the value of its bonds to fall or become worthless.
  • Currency risk: The fund may lose value as a result of movements in foreign exchange rates.
  • Derivatives risk – Efficient Portfolio Management and Investment Purposes: Derivatives may be used to manage the portfolio efficiently. A derivative may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the fund. The fund may also materially invest in derivatives including using short selling and leverage techniques with the aim of making a return. When the value of an asset changes, the value of a derivative based on that asset may change to a much greater extent. This may result in greater losses than investing in the underlying asset.
  • Emerging and Frontier Markets & High Yield Bond risk : Emerging markets, and especially frontier markets, generally carry greater political and legal risks than developed markets. Emerging markets and high yield bonds (normally lower rated or unrated) carry greater counterparty, credit, operational and liquidity risk.
  • Event risk: The fund will take significant positions on companies involved in mergers, acquisitions, reorganisations and other corporate events. These may not turn out as expected and may result in significant losses to the fund.
  • IBOR Risk : The transition of the financial markets away from the use of interbank offered rates (IBORs) to alternative reference rates may impact the valuation of certain holdings and disrupt liquidity in certain instruments.  This may impact the investment performance of the fund.
  • Interest rate risk: The fund may lose value as a direct result of interest rate changes .
  • Liquidity risk: In difficult market conditions, the fund may not be able to sell a security for full value or at all. This could affect performance and could cause the fund to defer or suspend redemptions of its shares.
  • Market Risk: The value of investments can go up and down and an investor may not get back the amount initially invested.
  • Operational risk: Failures at service providers could lead to disruptions of fund operations or losses
  • Performance risk: Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro economic environment, investment objectives may become more difficult to achieve.
  • Stock Connect risk: The fund may be investing in China "A" shares via the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect which may involve clearing and settlement, regulatory, operational and counterparty risks.

Contact Schroders

Schroders is a world-class asset manager operating from 35 locations across Europe, the Americas, Asia, the Middle East and Africa.


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