About the Manager

Schroders’ global network of professionals includes more than 330 portfolio managers and analysts covering the world's developed and emerging investment markets. Worldwide, Schroders employs more than 2,700 staff and has 32 offices in 25 countries.

As a dedicated investment manager, the firm also maintains a demonstrated commitment to primary fundamental research. In fact, it is one of Schroders' greatest strengths. Approximately 75% of the research used in investment decisions is generated by in-house experts. They visit companies for face-to-face talks with senior management - more than 3,400 company visits for emerging markets in 2010.

Investment philosophy

Schroder Emerging Market Equity Fund seeks capital appreciation through investment principally in equity securities of companies in emerging market countries in regions such as Asia, Latin America, Eastern Europe, the Middle East, and Africa.

Schroders’ believes 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. Schroders’ believes that it is inappropriate to apply a systematic style bias across so many countries at such different stages of development. However, given its strong analytical resources it would expect to generally have a bias towards medium capitalization stocks which should provide extra return potential. Schroders’ believes that as portfolio managers it should manage both return and risk. It aims to achieve returns with the minimum level of risk through a pro-active approach to risk control. Schroders’ believes that applying a systematic, disciplined approach, with a strong team culture increases its ability to add value.

Investment Approach

• Provides exposure to a range of developing countries around the world, which tend to have a stronger growth potential than mature economies and therefore offer the opportunity for premium returns

• Primary investment universe consists of the MSCI Emerging Markets Index, although it also aims to find good investments in the wider emerging markets universe

• Targets 50% value added from stock selection, 50% from country decisions

Portfolio managers

• Team headed by Allan Conway

              Allan has 30 years of investment experience and joined Schroders in
              2004 as Head of Emerging Markets Equities

• Team: 34 investment professionals – 7 fund managers, 24 analysts, an emerging markets strategist/fund manager, and 2 dedicated product managers

Allan Conway Schroder Emerging Market Equity Fund - Since Inception (March, 2006)

Mr. Conway is Head of Emerging Market Equities at Schroder Investment Management North America (SIMNA) Ltd. He has been an employee of SIMNA Ltd. since 2004. Formerly, Head of Global Emerging Markets, West LB Asset Management and Chief Executive Officer of Westar (UK).

Waj Hashmi, CFA Schroder Emerging Market Equity Fund - Since Inception (March, 2006)

Mr. Hashmi is a Portfolio Manager of SIMNA Ltd. He has been an employee of SIMNA Ltd. since 2000.

Robert Davy Schroder Emerging Market Equity Fund - Since Inception (March, 2006)

Mr. Davy is a Portfolio Manager of SIMNA Ltd. He has been an employee of SIMNA Ltd. since 1986.

James Gotto Schroder Emerging Market Equity Fund - Since Inception (March, 2006)

Mr. Gotto is a Portfolio Manager of SIMNA Ltd. He has been an employee of SIMNA Ltd. since 1991.

ESG commitment
Historically the potential impact of Environmental, Social and Governance (ESG) issues was implicitly incorporated into Schroders’ emerging market investment process by each analyst as part of their overall research into the companies they follow. However, given the increased focus by many investors on ESG related matters, Schroder has now formalized its approach so that these issues are explicitly factored into its investment process as summarized below.

• ESG sector templates have been added to the proprietary Global Research investment Database (GRiD) and analysts are expected to complete these as part of the standard investment process.

• Issues raised are assessed to determine if they undermine the underlying investment case. If these concerns are overridden analysts must state why.

• A third party ESG research service, MSCI RiskMetrics, is also being used. Currently they cover over 200 emerging companies and coverage is continuing to increase. The GRiD will highlight if a report is available. If so the analyst will use it in conjunction with the template

• The ESG team provides a consultancy service for analysts to go through for any issues that are uncovered

• The ESG team has provided an “aide memoire”, or summary training manual to be used in conjunction with the ESG templates. Analysts also have the group Investment and Corporate Governance policy document as a guideline.

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Foreign investing involves special risks such as currency fluctuations and political uncertainty .These risks are increased when investing in Emerging Markets.

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