Schroder Small Cap Discovery Class Z - Income (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're higher-risk because they're at an earlier stage of their development. The fund could therefore be used in a portfolio that's 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, but should only form a smaller part of an investment portfolio.
Matthew Dobbs has managed the fund since launch in 2012, but he'll step back from its management from 1 January 2021. His long-term colleagues Robin Parbrook and Alex Deane will take over as co-managers. Until late 2021, he'll take on an advisory role, in which he'll offer ongoing support to the new managers.
Given Dobbs' ongoing involvement with the fund, and the quality of the broader team around him, we currently retain our conviction. However, we remain in close contact with the managers, and will continue to monitor the situation closely.