Schroder PE fund added to three platforms
The Schroder Specialist Private Equity fund has been added to Macquarie Wrap, uXchange and Explore Wealth.
The global asset management firm said strong adviser demand necessitated the addition to the extra platforms, with it also being offered on HUB24 and Netwealth.
According to FE Analytics, the fund returned 21.82% since its inception to 28 February, 2021, versus the specialist sector, within the Australian core strategies universe, which returned 40.32%.
Claire Smith, Schroders Australia alternatives director, said the fund provided investors with diversification away from listed equity markets, and had a particular focus on small-to-mid cap specialist opportunities in the US and Europe, as well as Asian growth companies.
“By their nature, these companies are at earlier stages in their life cycle and are generally not accessible via listed markets given the high costs associated with public listings,” Smith said.
“As such this is an area where there is a particularly compelling risk/return trade-off for investors.
“Private equity opens up investment opportunities in a broader universe of companies than those listed on public stock exchanges – providing access to companies that are diverse in stage and size – and are otherwise difficult to access.”
Graeme Mather, Schroders head of distribution, said in the current climate of lower interest rates and elevated equity market valuations, some investors were looking for new ways to generate returns and were seeking diversification away from traditional listed equity and fixed income markets.
“The fund aims to generate an absolute internal rate of return of 10% to 12%, net of fees, over periods of five years and longer, which can be attractive for an investor with a long-term investment horizon,” Mather said.
“While private equity funds are typically illiquid, with investors generally only able to realise their investment at the end of a fund’s life, our unique structuring solution allows investors a degree of liquidity as they can apply to redeem on a quarterly basis.
“This liquidity has its limitations, including a cap on net redemptions each quarter, but has still proved popular with advisers and their clients.”
The fund had a ‘recommended’ rating from Zenith and an ‘investment grade’ rating from Lonsec.
Performance of the Schroder Specialist Private Equity fund versus specialist sector since inception to 28 February 2021
Recommended for you
High entry requirements are vital to ensure fund management remains competitive, according to Blackwattle’s managing director Michael Skinner, as the firm approaches its first anniversary.
Forager Funds Management has shared its rationale behind delisting its Australian Shares Fund from the ASX in favour of structuring it as an open-ended unit trust.
Michael Lovett, who left the investment giant just three months after launching its Vanguard Super offering, has taken up a CEO role at an Australian asset manager.
As fund managers look to enhance efficiencies and reduce operating expenses amid active underperformance, former abrdn managing director Brett Jollie shares how to successfully do so.
