27MAY 2022
Global Emerging Markets Equity
Investment Objective
The objective of the Schroder Emerging Markets Equity strategy is to provide capital growth primarily through investment in equity and equity-related securities of emerging markets companies.
The Schroder Emerging Markets Equity strategy aims to provide capital growth in excess of the MSCI Emerging Markets (Net TR) Index after fees have been deducted over a three to five year period.
Description
The Schroder Global Emerging Markets Equity strategy is a core balanced strategy that provides diversified, style agnostic exposure to a range of developing countries around the world.
Management Team
Schroders takes a team-based approach to the management of all emerging market equity portfolios. The fund managers are based in London, with stock analysts located in regional offices around the world.
Tom Wilson
Tom Wilson is Head of Emerging Market Equities, based in London. He was appointed to this position in August 2016, having previously been a Portfolio Manager and Head of Research on the Emerging Market Equities team. Prior to that he was the Head of EMEA from 2007 to 2014. He joined Schroders in 2001.
Tom Wilson
Tom Wilson is Head of Emerging Market Equities, based in London. He was appointed to this position in August 2016, having previously been a Portfolio Manager and Head of Research on the Emerging Market Equities team. Prior to that he was the Head of EMEA from 2007 to 2014. He joined Schroders in 2001.
Waj Hashmi
Waj Hashmi is a Portfolio Manager, based in London. He joined in 2005, having previously worked as a Senior Analyst and then Global Emerging Markets Fund manager at WestLB Asset Management from 1998-2002. Waj's investment career commenced in 1993 upon joining Arthur Andersen as a Corporate Tax Senior.
Waj Hashmi
Waj Hashmi is a Portfolio Manager, based in London. He joined in 2005, having previously worked as a Senior Analyst and then Global Emerging Markets Fund manager at WestLB Asset Management from 1998-2002. Waj's investment career commenced in 1993 upon joining Arthur Andersen as a Corporate Tax Senior.
Robert Davy
Robert Davy is a Portfolio Manager on Schroders' Emerging Market Equities team, based in London. He joined Schroders in 1986 as a UK research analyst, moving to the US desk as a fund manager in 1988. During the 1990s, Robert established Schroders offices and businesses in Latin America, before transitioning to his current role in the Emerging Market Equities team in 2000.
Robert Davy
Robert Davy is a Portfolio Manager on Schroders' Emerging Market Equities team, based in London. He joined Schroders in 1986 as a UK research analyst, moving to the US desk as a fund manager in 1988. During the 1990s, Robert established Schroders offices and businesses in Latin America, before transitioning to his current role in the Emerging Market Equities team in 2000.
James Gotto
Emerging Markets Portfolio Manager
James Gotto is a Portfolio Manager on Schroders' Emerging Market Equities team, based in London. He joined Schroders in 1991 as a UK research analyst, before moving to the Latin American equities team in 1994. He became a Global Emerging Markets portfolio manager in 2005, and has managed the Global Emerging Markets Impact strategy since its inception in 2021.
James Gotto
Emerging Markets Portfolio Manager
James Gotto is a Portfolio Manager on Schroders' Emerging Market Equities team, based in London. He joined Schroders in 1991 as a UK research analyst, before moving to the Latin American equities team in 1994. He became a Global Emerging Markets portfolio manager in 2005, and has managed the Global Emerging Markets Impact strategy since its inception in 2021.
Nicholas Field
Nicholas Field is a Portfolio Manager and Strategist on Schroders’ Emerging Market Equities team, based in London. He joined Schroders in July 2006 from WestLB Asset Management where he was a Global Emerging Markets Fund Manager from 1999. Prior to that, he worked at Dresdner RCM Global Investors as an Emerging Markets Fund Manager from 1996, and at HM Treasury from 1991.
Nicholas Field
Nicholas Field is a Portfolio Manager and Strategist on Schroders’ Emerging Market Equities team, based in London. He joined Schroders in July 2006 from WestLB Asset Management where he was a Global Emerging Markets Fund Manager from 1999. Prior to that, he worked at Dresdner RCM Global Investors as an Emerging Markets Fund Manager from 1996, and at HM Treasury from 1991.
Investment Philosophy
We believe that emerging stock markets are inefficient and provide strong potential for adding value through active fund management. This value can be extracted through both country and stock selection. We believe that it is inappropriate to apply a systematic style bias across so many countries at such different stages of development. We believe that as fund managers we should manage both return and risk. Our aim is to achieve returns with the minimum level of risk through a proactive approach to risk control. We believe that applying a systematic, disciplined approach, with a strong team culture increases our ability to add value.
Investment Process
Schroders has a balanced approach to investing in global emerging market equities, using a mix of top-down country analysis and bottom-up stock selection. Over the long term, we aim to derive 50% of our added value from country allocation, guided by our proven proprietary quantitative model with judgemental overlay, and 50% from stock selection, driven by in-depth fundamental research.
Our investment process begins with the gathering and analysis of information on both countries and stocks. That information is then used to decide allocations for the portfolio. Country allocation discussions are guided by a proprietary quantitative model, while fundamental research forms the basis of the stock selection process. We have the resources to follow a large number of companies within our universe. It is this breadth of coverage, coupled with the local nature of our research, that provides the means of generating unique investment ideas at the stock level.
Our investment process is summarized in the diagram below.
Source: Schroders, for illustrative purposes only.
Key Features
Our key differentiating features in the management of global emerging markets equities are:
- Disciplined process: Over the long term we aim to derive roughly half our added value from country allocation and half from stock selection, using a proprietary quantitative model to guide country decisions and in-house fundamental research to determine stock positions.
- Rigorous risk management: We follow a rigorous and proactive approach to risk management and risk guidelines are in place at the stock, country and sector levels. Our risk controls are monitored continuously on several levels.
- Experienced team: we benefit from an extensive emerging market equities team with fund management centralized in London and stock analysts located in regional offices around the world. Importantly, we use a “matrix” approach to ensure clients get input from all members of the team.
- Global resources: The team is supported by Schroders’ central resources, including the Economics team, Data Insights Unit and Sustainable Investment team, as well as global platforms for dealing, settlement, risk, research and performance.
Literature
Investment Options*
- Subadvised Mutual Fund
- Separate Accounts
- Commingled Vehicle