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Global Sustainable Growth

Long-term value created through long-lasting relationships

Schroder ISF Global Sustainable Growth

Aims to provide capital growth by investing globally in the shares of companies that are managed for the long term and account for their impact on all stakeholders. We believe these sustainably-run companies are best placed to be able to deliver superior growth and long-term investment returns.

Despite this, the market continues to largely focus on traditional financial metrics, persistently ignores these sustainability factors, and therefore can underestimate the fundamental value and long-term growth potential of a company. This market inefficiency creates investment opportunities for active investors to capitalise on.

Sustainable Growth – why stakeholders are the key to long-term returns

Key highlight

A unique approach to building a forward-looking sustainable portfolio 

A detailed assessment of sustainability is incorporated into our research process via our proprietary Sustainability Quotient (SQ) framework.
This is an in-depth, forward-looking, qualitative assessment of the long-term sustainability of a company’s business model and growth prospects based on stakeholder relationships. This helps us identify ‘good’ companies that are also good investments. 

Bringing together Schroders’ capabilities to uncover the sustainable winners of the future

A genuine collaboration between the Schroders’ Global & International Equity and Sustainability Teams, leveraging the strength of Schroders’ fundamental research resources and expertise on sustainability and stewardship.
We build upon the work by the Schroders dedicated Sustainability team, who conduct top-down thematic research across areas, such as climate change, the use of plastics and cybersecurity, that complements the bottom-up research carried out by the team.  

Investing is only one piece of the puzzle, active engagement is key 

Sustainable investing is as much about how we own companies as it is about those we choose to buy. As long-term shareholders, we regard ourselves as an active owner of the companies in which we invest. Engagement is therefore central to the strategy’s approach; we believe we can make positive changes to company practices and serve to improve shareholder returns and broader societal outcomes.  

Risk Considerations

  • 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.
  • Operational risk: Operational processes, including those related to the safekeeping of assets, may fail.  This may result in losses to the fund. 
  • Market Risk: The value of investments can go up and down and an investor may not get back the amount initially invested. 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.
  • 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.
  • Emerging Markets & Frontier risk: Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty, operational and liquidity risk than developed markets.
  • Derivatives risk – efficient portfolio management: 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.
  • Currency risk: The fund may lose value as a result of movements in foreign exchange rates.
  • 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.

Important information: The views and opinions contained herein are those of the authors, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This webpage is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the views and information in the webpage when taking individual investment and/or strategic decisions. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.  The data contained in this webpage has been obtained from sources we consider to be reliable. No responsibility can be accepted for errors of fact and the data should be independently verified before further publication or use. The sectors shown are for illustrative purposes only and not to be considered a recommendation to buy or sell. Exchange rate changes may cause the value of any overseas investments to rise or fall.

This content is issued by Schroder Investment Management (Europe) S.A., 5, rue Höhenhof, L-1736 Senningerberg, Luxembourg. Registered No. B 37.799.

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