schroders launches em small cap

Schroders has unveiled an emerging market small cap offering to be run by Matthew Dobbs, head of global and international small cap equities at the firm.

schroders launches em small cap


The Schroder Small Cap Discovery Fund, due to launch on 15 March, will focus on achieving capital growth through investing in smaller companies in EM and Asia ex-Japan.

Dobbs, who has 25 years’ experience in the region will run the fund alongside his other mandates there: the Schroder Asian Alpha Plus Fund and the Asia Pacific and Oriental Income investment trusts.

Since launch in November 2007, his Asian Alpha Plus Fund has beaten the benchmark in the year-to-date, over one year and three years.

From its launch date it has returned 34.7% compared to 11% from the benchmark and over three years it is up 109.7% versus 61.2% from the benchmark.

The UK-domiciled Small Cap Discovery Fund will invest in 70 to 100 stocks and aim to generate strong risk-adjusted returns relative to benchmark and with lower than index volatility. It sits in the IMA Global Equities Sector.

Dobbs said: "Smaller companies in emerging markets and Asian regions are an increasingly attractive opportunity set, providing higher exposure to some of the most interesting themes such as consumer cyclicals, industrials and healthcare.

“The number of potential smaller companies in emerging markets has risen substantially over the past decade, deepening the investment universe and enhancing the opportunity set."

The fund can also invest in smaller companies listed or domiciled outside the region, but which derive a significant portion of their business or growth from it.


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