Schroder Small Cap Discovery Fund. Interim Short Report 16 April 2016 to 15 October 2016

Transcription

1 Schroder Small Cap Discovery Fund Interim Short Report 16 April 2016 to 15 October 2016

2 Schroder Small Cap Discovery Fund Review of Investment Activities From 15 April 2016 to 14 October 2016, the price of Z Accumulation units on a dealing price to dealing price basis rose 23.82%. In comparison, our composite index which is made up of the MSCI Emerging Markets Small Cap Index plus Singapore Small Cap Index and Hong Kong Small Cap Index generated a total return of 21.69% 1 in sterling terms. 1 Source: MSCI. Asian equities, along with broader emerging market equities, delivered positive returns over the period. A shock Brexit vote in a referendum on the EU in the UK and slowing growth in China spurred central bankers globally to act to support growth rates with looser monetary policy driving gains in share prices. The best performing country for the fund over the period was strong stock selection in China, where our holdings in select consumer discretionary names outperformed the broader market. There was also strong contribution from stock selection in South Korea with the fund s holdings in key exporters outperforming on more positive data on the health of the US economy. Strong stock selection in Taiwan also added value. Meanwhile, the leading detractor was negative stock selection in Indonesia as our holdings in select telecommunications stocks underperformed the market. In a world of political uncertainty and disruption we are seeking out cash flows, sustainable yields, innovative/adaptable companies and strong balance sheets. As always, we maintain a strict bottom up investment view and we continue to look for good companies at a reasonable price. Fund Manager: Matthew Dobbs

3 Fund Information Interim Final Accounting dates 15 October 15 April Revenue allocation date 15 June For the period For the year Ongoing charges figure to to A Income units 1.73% % A Accumulation units 1.73% % L Income units 0.91% % L Accumulation units 0.91% % Z Income units 0.98% % Z Accumulation units 0.98% % 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 L Income units L Accumulation units Z Income units Z Accumulation units months 6 months Since launch Schroder Small Cap Discovery Fund 12.65% 23.82% 69.02% Composite Index % 21.69% 33.60% Fund Source: Z Accumulation units on a dealing price to dealing price basis to Index Source: MSCI, total return in sterling terms to Blend of MSCI Small Cap Indices (Emerging Markets, Singapore and Hong Kong), total return in sterling terms. Schroder Small Cap Discovery Fund was launched on

4 Performance Record (continued) Unit price range A Income units A Accumulation units Highest Lowest Highest Lowest Financial year to dealing dealing dealing dealing 15 April p p p p October L Income units L Accumulation units Highest Lowest Highest Lowest Financial year to dealing dealing dealing dealing 15 April p p p p October Z Income units Z Accumulation units Highest Lowest Highest Lowest Financial year to dealing dealing dealing dealing 15 April p p p p October Net revenue Financial year to A Income units A Accumulation units 15 April pence per unit pence per unit October 2016 Nil Nil Financial year to L Income units L Accumulation units 15 April pence per unit pence per unit 2014 Nil Nil October 2016 Nil Nil

5 Performance Record (continued) Financial year to Z Income units Z Accumulation units 15 April pence per unit pence per unit October 2016 Nil Nil 1 The unit class was launched on 1 October 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. Portfolio Information % of net % of net assets assets as at as at Spread of investments China Hong Kong India Indonesia Japan Malaysia Philippines Singapore South Korea Sri Lanka Taiwan Thailand Australia Bermuda British Virgin Islands Cayman Islands Mexico Cyprus France Kenya Netherlands Nigeria Poland Russia South Africa United Kingdom Net other assets

6 Portfolio Information (continued) % of net assets as at Major holdings Mando 3.01 Arvind 2.37 Chroma ATE 2.09 Eclat Textile 2.07 Apollo Hospitals Enterprise 1.99 Medy-Tox 1.92 Alsea 1.85 Chow Sang Sang Holdings International 1.84 Supreme Industries 1.78 Hollysys Automation Technologies 1.78 % of net assets as at Medy-Tox 2.33 Marie Brizard Wine & Spirits 2.15 Arvind 1.99 Supreme Industries 1.97 Best Pacific International Holdings 1.93 Mando 1.92 S Chroma ATE 1.85 Hollysys Automation Technologies 1.84 Apollo Hospitals Enterprise 1.84 Investment Objective & Policy The fund s investment objective is to achieve capital growth. The fund will invest in smaller companies in the Asia (ex Japan) region and in selected emerging markets. It will also invest in smaller companies that may be listed and/or domiciled outside Asia/emerging markets, but which derive a significant portion of their business or growth from these regions. Investment will be in directly held transferable securities. The fund may also invest in collective investment schemes, derivatives, cash, deposits, warrants and money market instruments.

7 Risk Profile Risk and reward indicator Lower risk Potentially lower reward Higher risk Potentially higher reward The risk category was calculated using simulated 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. Exchange rates may cause the value of overseas investments and the revenue from them to rise or fall. The fund invests in less developed markets which are generally less well regulated than the UK. They may be less liquid and may have less reliable custody arrangements. The fund invests in emerging markets and the Far East. This involves a high degree of risk and should be seen as long term in nature. The fund invests in smaller companies which may be less liquid than larger companies and price swings may therefore be greater than in larger company funds. The fund may use derivatives for specific investment purposes. This involves a higher degree of risk and may lead to a higher volatility in the unit prices of the fund. For these reasons, the purchase of units should not normally be regarded as a short term investment.

8 Report & Accounts This document is a short report for Schroder Small Cap Discovery Fund for the period ended 15 October 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 December 2016 by Schroder Unit Trusts Limited, 31 Gresham Street, London EC2V 7QA. Registered No: England. Authorised and regulated by the Financial Conduct Authority. w35659 MRSCDI16