Schroders to launch onshore version of US equity alpha fund
Schroders is to launch an onshore version of its Luxemburg-domiciled US equity alpha fund next month for head of US large-cap equities Joanna Shatney.
The fund, set to launch on December 14, will express the US team’s best ideas. It has been seeded with $5m and will invest in between 20 and 30 stocks with a minimum of $1bn in market cap.The fund can hold up to 15 per cent in cash.
Shatney has run a Luxemburg-domiciled version of the fund since December 15, 2010.
Shatney says: “The fund will invest in companies that generate a high amount of alpha. I will do an extra level of analysis on these stocks and look at earnings power over the next three years.”
“The holding period for the other US funds, like the Schroder ISF US all cap, is two years. This fund is designed to be more opportunistic.”
The fund will have an annual charge of 1.5 per cent and the TER will be capped at 1.75. Minimum investment is £1,000. The fund has a target return of 3.5 per cent net of fees.