Schroder European Alpha Plus Fund. Interim Short Report 16 March 2016 to 15 September 2016

Transcription

1 Schroder European Alpha Plus Fund Interim Short Report 16 March 2016 to 15 September 2016

2 Schroder European Alpha Plus Fund Review of Investment Activities From 15 March 2016 to 15 September 2016, the price of A Accumulation units on a selling price to selling price basis rose 10.10%. In comparison, the FTSE* World Europe ex UK Index generated a total return of 11.12% 1 in sterling terms. 1 Source: Thomson Reuters Datastream. European equities gained over the six months, supported by ongoing accommodative monetary policy from the European Central Bank and the decline of sterling. The fund also posted gains but lagged the benchmark. The main individual detractor from relative performance was telecommunications group Orange after its proposal to buy the assets of Bouygues Telecom broke down. Another detractor was bricks manufacturer Wienerberger due to concerns over a slowing construction market in the UK; we have reduced our holding. Our underweight allocation to the food & beverage sector also detracted as this perceived safe haven performed well in the volatility that marked the early part of the period. The leading individual contributor was new position Maisons du Monde. It is a homewares retailer with presence across seven countries in Europe. We believe it has a strong market position and see good prospects for expansion. Another top contributor was medical devices maker Ambu, which continues to grow strongly amid the launch of new products. Our positioning in financials especially banks was positive for fund performance. The sector experienced volatile performance over the period, with some steep falls around the time of the UK s vote to leave the EU followed by better performance in the subsequent months. Looking ahead, we anticipate the return of inflation as oil prices stabilise. This is likely to see an end to current ultra loose monetary policy and cause bond yields to rise. Such an environment should be positive for Fund Manager: James Sym

3 Fund Information Interim Final Accounting dates 15 September 15 March Revenue allocation date 15 May For the period For the year Ongoing charges figure to to A Income units 1.68% % A Accumulation units 1.68% % GBP Hedged A Income units 1.68% % GBP Hedged A Accumulation units 1.68% % GBP Hedged Z Income units 0.93% % GBP Hedged Z Accumulation units 0.93% % L Income units 0.86% % L Accumulation units 0.86% % S Income units 0.56% % Z Income units 0.93% % Z Accumulation units 0.93% % 1 The Ongoing charges figure is annualised based on the fees incurred during the accounting period. Performance Record Net Asset Net Asset Value as at Value as at Net Asset Value Fund performance pence per unit pence per unit % change A Income units A Accumulation units GBP Hedged A Income units GBP Hedged A Accumulation units GBP Hedged Z Income units GBP Hedged Z Accumulation units L Income units L Accumulation units S Income units Z Income units Z Accumulation units

4 Performance Record (continued) 3 months 6 months 5 years Schroder European Alpha Plus Fund 12.38% 10.10% 55.97% FTSE* World Europe ex UK Index 13.83% 11.12% 75.07% Fund Source: A Accumulation units on a selling price to selling price basis to Index Source: Thomson Reuters Datastream, total return in sterling terms to * FTSE International Limited ( FTSE ) FTSE. FTSE is a trade mark of London Stock Exchange plc and The Financial Times Limited and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE s express written consent. The performance of hedged unit classes may differ from other unit classes of the fund because the return on unhedged unit classes is based on both the performance of the fund s investments and the performance of the portfolio currency/currencies relative to sterling whereas the return on a hedged unit class is based only on the performance of the fund s investments. A Accumulation GBP Hedged Unit price range A Income units units A Income units Highest Lowest Highest Lowest Highest Lowest Financial year to buying selling buying selling buying selling 15 March p p p p p p September GBP Hedged GBP Hedged A Accumulation GBP Hedged Z Accumulation units Z Income units units Highest Lowest Highest Lowest Highest Lowest Financial year to buying selling buying selling buying selling 15 March p p p p p p September L Accumulation L Income units units S Income units Highest Lowest Highest Lowest Highest Lowest Financial year to buying selling buying selling buying selling 15 March p p p p p p September

5 Performance Record (continued) Z Income units Z Accumulation units Highest Lowest Highest Lowest Financial year to buying selling buying selling 15 March p p p p September GBP Hedged Net revenue A Accumulation GBP Hedged A Accumulation Financial year to A Income units units A Income units units 15 March pence per unit pence per unit pence per unit pence per unit Nil 1 Nil Nil 4 Nil Nil September 2016 Nil Nil Nil Nil GBP Hedged GBP Hedged Z Accumulation L Accumulation Financial year to Z Income units units L Income units units 15 March pence per unit pence per unit pence per unit pence per unit 2014 Nil 1 Nil September 2016 Nil Nil Nil Nil Z Accumulation Financial year to S Income units Z Income units units 15 March pence per unit pence per unit pence per unit September 2016 Nil Nil Nil 1 The unit class was launched on 1 July The unit class was launched on 1 October The unit class was launched on 31 January There was no distribution as the total amount distributable was below de minimis. Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money.

6 Portfolio Information % of net % of net assets assets as at as at Spread of investments Austria Belgium Denmark Finland France Germany Italy Luxembourg Netherlands Norway Spain Sweden Switzerland United Kingdom Euro Denominated Derivatives (0.01) (0.02) Net other assets % of net assets as at Major holdings Swedbank 5.12 Eni 5.01 Novartis 4.51 AXA 4.17 Orange 4.10 Deutsche Telekom 3.36 AURELIUS 3.27 Maisons du Monde 3.19 TKH Group 3.01 XXL 2.89 % of net assets as at Eni 4.68 Orange 4.59 Deutsche Telekom 4.39 Roche Holding 4.39 AXA 4.02 Valeo 3.32 Wienerberger 3.14 Wolters Kluwer 2.98 Airbus Group 2.68 BNP Paribas 2.68

7 Investment Objective & Policy The fund s investment objective is to provide capital growth through investment in equity and equity related securities of European companies. At least 80% of the fund will be invested in a concentrated portfolio (typically between 35 and 60 holdings) of large or mid-sized companies listed, incorporated or headquartered in European countries or companies that derive a significant proportion of their revenues from their European business. The fund may also invest in collective investment schemes, fixed interest securities, warrants, cash, deposits and money market instruments. Risk Profile Risk and reward indicator Lower risk Potentially lower reward Higher risk Potentially higher reward The risk category was calculated using historical performance data and may not be a reliable indicator of the fund s future risk profile. The fund is in this category because it can take higher risks in search of higher rewards and its price may rise and fall accordingly. The fund s risk category is not guaranteed to remain fixed and may change over time. A fund in the lowest category does not mean a risk free investment. Specific risks The fund invests in assets which are exposed to currencies other than sterling. For non-hedged unit classes exchange rates may cause the value of overseas investments and the revenue from them to rise or fall. There is no guarantee that the hedging strategy applied in hedged unit classes will entirely eliminate the adverse effects of changes in exchange rates between the base currency and the portfolio currencies. In addition, it should be noted that hedging transactions will be entered into whether or not the currency of a hedged unit class is declining or increasing in value in relation to the base currency or portfolio currencies. Hedged unit classes aim to provide investors with a return correlated to the portfolio currencies performance of the fund by reducing the effect of exchange rate fluctuations between the base currency and the portfolio currencies.

8 Risk Profile (continued) As it is not possible to legally segregate unit classes liabilities from those of other unit classes in the fund, there is a risk that, in certain limited circumstances, the hedging transactions undertaken in relation to a hedged unit class could result in liabilities which might affect the net asset value of the other unit classes in the fund. The fund invests in a smaller number of stocks. This carries more risk than funds spread across a larger number of companies. For these reasons, the purchase of units should not normally be regarded as a short term investment. Report & Accounts This document is a short report for Schroder European Alpha Plus Fund for the period ended 15 September The long form Report & Accounts for the fund are available on our website or upon written request to Schroders, FREEPOST, RLTZ-CHSY-HBUT, PO Box 1102, Chelmsford, Essex CM99 2XX. Other Information The information contained in this report is designed to enable unitholders to make an informed judgement on the activities of the fund during the period it covers and the results of those activities at the end of the period. For more information about the activities and performance of the fund during this and previous periods, please contact the Manager. The Prospectus, the Key Investor Information Document and details of investment charges and costs are available on request or can be downloaded from our website Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money. For investors security, calls to Schroder Investor Services may be recorded. Manager: Schroder Unit Trusts Limited, 31 Gresham Street, London EC2V 7QA. Authorised and regulated by the Financial Conduct Authority. Investment Adviser: Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA. Authorised and regulated by the Financial Conduct Authority. Trustee: J.P. Morgan Europe Limited, Chaseside, Bournemouth BH7 7DA. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Independent Auditors: PricewaterhouseCoopers LLP, Atria One, 144 Morrison Street, Edinburgh EH3 8EX. For further literature please contact Schroder Investor Services on or at investorservices@schroders.com, or visit our website at Issued in November 2016 by Schroder Unit Trusts Limited, 31 Gresham Street, London EC2V 7QA. Registered No: England. Authorised and regulated by the Financial Conduct Authority. w35659 MR075BI16