Schroder Small Cap Discovery Class Z - Accumulation (GBP)
Our view on this Fund
This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.
This fund invests in smaller businesses that are based in Asian and emerging markets or make most of their money in these areas. Smaller and more innovative businesses offer lots of growth potential, but they are higher risk because they are at an earlier stage of their development. The fund could therefore be used in a portfolio that is able to accept more volatility in search of higher potential long term returns. We think it could fit well with Asian and emerging markets funds focused on larger firms, or as part of a broader global portfolio, but should only form a smaller part of an investment portfolio.
Matthew Dobbs stepped down as manager of this fund from 1 January 2021. His long term colleagues Robin Parbrook and Alex Deane took over as the fund's co-managers. Parbrook is another veteran Asian fund manager. He has built a strong track record over the years and has a similar fund management style to Dobbs. Deane has applicable analyst experience for co-managing this fund, though this is Deane's first fund manager role, and as such he does not have his own track record.
We rate the managers and the support provided by Schroders' Asian and smaller companies teams. As always, we will continue to monitor how the fund progresses.