QEP Global Quality

Investment Objective

Global Quality aims to produce a long run return of +3% per annum (gross of fees) above global indices such as the MSCI All Country World Index (MSCI ACWI) over a full investment cycle.

Description

Schroder QEP Global Quality is an index-unconstrained strategy designed to deliver higher long-run returns than the market. Analyzing a universe of 15,000 stocks for this strategy, the team constructs a highly diversified portfolio typically containing over 300 stocks.

Stock selection for this strategy is grounded in the analysis of company fundamentals indicating Quality: measures of profitability, stability (operational volatility), financial strength, sales growth and governance. We believe that Quality offers a more stable form of growth investing, actively avoiding more thematic opportunities which we believe have a higher propensity to disappoint. Investment decisions are also informed by stock valuations, which helps us to avoid ‘overpaying’ for quality attributes.

We believe that intelligent portfolio construction can greatly enhance the ability to generate repeatable long-run returns. We reduce stock specific risk by building a highly diversified portfolio, but with conviction in every single stock. Recognizing the limitations of market cap-weighted indices, we take an index-unconstrained approach which enables us to invest wherever we find the best Quality opportunities and to capitalize upon those which may be missed by other global managers, including companies across the emerging markets.