fund
Schroder European Smaller Companies Z
European (excluding UK) small and mid-cap equity fund.
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163.60p
Price (Inc)
These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.
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177.80p
Price (Acc)
These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?
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0.00%
Initial chargeSome funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!
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0.75%
Annual management charge
This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).
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0.95%
Ongoing charges
This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.
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0.20%
Yield
How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…
The objective is capital growth by investing in Continental European smaller and medium sized companies. The manager follows a fundamental approach to selecting equities and has no pre-determined style bias. The emphasis is on companies whose share price is either cheap relative to growth prospects or asset value. The manager looks at a company’s ability to create value for shareholders and on companies operating in industries where demand is greater than supply, giving them pricing power.
Fund summary
| Sector | European Smaller Companies |
| Structure | UNIT TRUST |
| Launched | November, 2011 |
| Size | £145m |
| Yield | 0.20% |
| Charging basis | Income |
| Dividends paid | 31 Jan |
Charges
| Standard initial charge | 0.00% |
| Initial charge via Bestinvest | 0.00% |
| Additional bid/offer spread | 0.00% |
| Annual management charge | 0.75% |
| Ongoing charges figure | 0.95% |
Allocation
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Investment process
The fund’s investment objective is to achieve capital appreciation through investment in smaller European companies. The portfolio is constructed from the bottom up with little regard to sector or country exposure. The managers believe broker research on mid and small cap companies is limited, and so company visits are a key part of the investment process. Quantitative screens are applied to focus research. The managers use their fundamental research to divide the investable universe into 3 types of companies: "A" companies operating in industries where demand exceeds supply; "B" companies - cyclical stocks or franchises in transition, where the balance of supply and demand varies over time; "C" companies operating in industries where supply exceeds demand. The portfolio is focused around “A” companies, but may also seek trading opportunities in B companies. C companies are avoided.
Manager research
Average monthly relative returns
- 16/17 -0.29%
- 17/18 0.53%
- 18/19 -0.35%
- 19/20 -0.52%
- 20/21 0.27%
Bestinvest MRI
- 3 years -0.20%
- 5 years -0.07%
- Career 0.08%
- 3 years 35.90%
- 5 years 51.60%
- Career 85.50%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Luke Biermann
Biermann is a portfolio manager on the Schroder European Smaller Companies Fund & UK Dynamic Smaller Companies Fund. He also has analyst research responsibilities across the Pan-European small cap universe. Biermann joined Schroders as a graduate in October 2006 and is a CFA Charterholder. He has completed a BSc (Hons) in Computer Science, University of Bath.
Track record
Luke Biermann has 9.1 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.08%. During the worst period of relative performance (from June 2018 - February 2020) there was a decline of 19% relative to the index. The worst absolute loss has been 32%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 86%.
Periods of worst performance
| Absolute | -32.00% (August 2018 - March 2020) |
| Relative | -19.00% (June 2018 - February 2020) |
About the MRI
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.
Allocation
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Top 10 holdings
Data accurate as at 31 July 2020
| 4.16% | Hellofresh Se |
| 3.76% | Royal Unibrew A/S |
| 3.58% | Trigano |
| 3.36% | Dermapharm Hldg Se |
| 3.18% | Dovalue Spa |
| 2.99% | Kaufman & Broad |
| 2.88% | Embracer Group Ab |
| 2.83% | S&T Ag |
| 2.72% | Gerresheimer Group |
| 2.62% | Borregaard Asa |
| Source: Trustnet |
Sector breakdown
| Industrials | 19.00% |
| Consumer Goods | 17.00% |
| Consumer Services | 15.00% |
| Technology | 13.00% |
| Health Care | 13.00% |
| Financials | 9.00% |
| Others | 6.00% |
| Basic Materials | 3.00% |
| Energy | 2.00% |
| Oil & Gas | 1.00% |
Portfolio
The fund holds 70-100 stocks.
Constraints
Country weights +/- 20% vs. benchmark; Sector weights +/- 20% vs. benchmark; individual holdings +/- 5% vs. benchmark. Cash - max 10%. Tracking error – max 10%.