Schroder ISF* Global Cities
OPPORTUNITY THAT NEVER SLEEPS. Cities already generate more than 80% of world GDP and the real estate within them consistently outperforms national averages*. With urban migration set to increase, global cities will be the lifeblood of economic growth. Invest for profit with purpose. *Source: IBRD as at 20 April 2020Global Cities are places where people want to live, work and play. Their key characteristics are: strong infrastructure, diverse economies, advanced ESG polices, skilled labour force, and quality of life and culture. Investing in real estate assets within these cities gives exposure to a diverse range of sectors.
*Schroder International Selection Fund is referred to as Schroder ISF.
Urbanisation is a powerful multi-decade theme
It's expected that by 2050, nearly 70% of the world's population (compared to 55% today) will reside in urban areas.
*Source: UN, as at May 2018
So knowing which cities stand to benefit from this demographic shift means investors can target the right opportunities. Investing in real assets within these cities gives exposure to a diverse range of sectors (from data centres, self-storage and manufactured homes to conventional areas such as offices, retail and industrials) and access to economies that are expected to outperform national averages.
Global Cities also offer a solution to combatting climate change. With two thirds of carbon emissions focused on cities, the transition to net zero carbon and achieving the goals set out in The Paris Agreement would require changes to first be made in these cities that are backed by sustainability policies. A clear example of the impact cities can make is seen from C40, a network of the world’s megacities that are committed to addressing climate change.
These cities’ foundations lie in superior sustainability policies, strong infrastructure, diverse economies, skilled labour and a high quality of life. They attract the best talent worldwide, who contribute to continuing economic growth.
"Global Cities are those which capture the world's attention and investment, they are international hubs for individuals and businesses. It is in these cities you will find world-class universities and enterprises - with governments working hard to ensure they continue to thrive."
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Read more about Schroder ISF Global Cities
Portfolio managers
Global Listed Real Assets
Analysts
Global Real Estate Securities, Global Listed Real Assets
Fitch Ratings Excellent (as at 16 June 2021)
Square Mile Investment Consulting and Research - Responsible A
Febelfin Towards Sustainability
During 2021 the Global Cities fund was subject to sustainability assessments from various parties. This analysis provides evidence of the rigour and extensive focus we apply in this crucial area.
In April the fund was awarded the Belgium Febelfin Towards Sustainability accreditation which signifies that it adheres to the highest quality standards for sustainable and socially responsible financial products.
In October the fund received a ‘Responsible A rating’ from Square Mile Investment Consulting and Research. The report stated that “ESG considerations are deeply embedded throughout the investment process, with the managers seeking to invest in sustainable real assets that enable society to meet its present needs without compromising the ability of future generations to meet theirs”.
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Risk Considerations
Counterparty risk: The fund may have contractual agreements with counterparties. If a counterparty is unable to fulfil their obligations, the sum that they owe to the fund may be lost in part or in whole.
Emerging markets & frontier risk: Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty, operational and liquidity risk than developed markets.
Currency risk / hedged share class: The hedging of the share class may not be fully effective and residual currency exposure may remain. The cost associated with hedging may impact performance and potential gains may be more limited than for unhedged share classes.
Derivatives risk: Derivatives may be used to manage the portfolio efficiently. A derivative may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the fund.
IBOR risk: The transition of the financial markets away from the use of interbank offered rates (IBORs) to alternative reference rates may impact the valuation of certain holdings and disrupt liquidity in certain instruments. This may impact the investment performance of the fund.
Liquidity risk: In difficult market conditions, the fund may not be able to sell a security for full value or at all. This could affect performance and could cause the fund to defer or suspend redemptions of its shares.
Performance risk: Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro economic environment, investment objectives may become more difficult to achieve.
Sustainability risk: The fund has the objective of sustainable investment. This means it may have limited exposure to some companies, industries or sectors and may forego certain investment opportunities, or dispose of certain holdings, that do not align with its sustainability criteria chosen by the investment manager. The fund may invest in companies that do not reflect the beliefs and values of any particular investor.
Higher volatility risk: The price of this fund may be volatile as it may take higher risks in search of higher rewards.
Market risk: The value of investments can go up and down and an investor may not get back the amount initially invested.
Important Information
This webpage does not constitute an offer to anyone, or a solicitation by anyone, to subscribe for shares of Schroder International Selection Fund (the “Company”). Nothing in this webpage should be construed as advice and is therefore not a recommendation to buy or sell shares. An investment in the Company entails risks, which are fully described in the prospectus.
Subscriptions for shares of the Company can only be made on the basis of its latest Key Investor Information Document and prospectus, together with the latest audited annual report (and subsequent unaudited semi-annual report, if published), copies of which can be obtained, free of charge, from Schroder Investment Management (Europe) S.A. For Luxembourg, these documents may be obtained in English, free of charge, from the following link: www.eifs.lu/schroders.
Schroders may decide to cease the distribution of any fund(s) in any EEA country at any time but we will publish our intention to do so on our website, in line with applicable regulatory requirements.
The fund has environmental and/or social characteristics within the meaning of Article 9 of Regulation (EU) 2019/2088 on Sustainability-related Disclosures in the Financial Services Sector (the “SFDR”). For information on sustainability-related aspects of this fund please go to www.schroders.com.
Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell any financial instrument/securities or adopt any investment strategy.
Past Performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of investments to fall as well as rise. Schroders has expressed its own views and opinions in this document and these may change.
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