The Global Equity Alpha strategy, which is now being introduced to the Australian market, offers investors concentrated exposure to global equities and has demonstrated strong performance with more than a decade of consistent outperformance against the MSCI ACWI index. Additionally, QEP’s flagship Core strategy, with its highly diversified approach, marks a significant milestone this month, celebrating its 25th anniversary with a remarkable track record of outperforming its benchmark in 20 out of 25 years.

Mr Doyle will report to Ray Macken, Head of Client Group, Australia and New Zealand.

Mr Doyle has more than 22 years’ experience in asset management, with extensive client facing experience across institutional and intermediary channels, as well as with brokers and the direct-to-consumer market, having launched and championed active ETFs for a number of years.

Mr Doyle joins Schroders from Pinnacle boutique Firetrail Investments, where he was most recently their Head of Investment Strategy.

Prior to Firetrail, Mr Doyle worked at Fidelity and Macquarie in Australia, as well as M&G (in England), where he was responsible for establishing the investment specialist role and led a team of specialists that covered fixed income equities, multi-asset and property, and Pioneer Investments (in Ireland).

Simon Doyle, CEO of Schroders Australia, says that Mr Doyle’s extensive experience will be an asset to the wider Schroders team as it enhances its global equity capabilities in Australia.

“Anthony will have a strong client facing role and will be the bridge between our clients and our global equities portfolio managers locally and globally.”

“This will enhance our ability to deliver to the overall investment needs of our clients and provide solutions through our select, high quality global equity investment capabilities.”

Anthony holds an MBA from the University of London and a Master of Economic Studies from the University of New England.

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Nevertheless, the GIS found investors globally have been forced to re-evaluate their investment strategies in response to the new economic reality and ongoing inflation and geopolitical uncertainty. 

Against this backdrop, far fewer investors consider themselves as having ‘expert’ or ‘advanced’ knowledge in 2023, with 47 per cent of investors globally (60 per cent in Australia) considering their knowledge as ‘expert’ or ‘advanced’. This compares to 56 per cent of investors globally (70 per cent in Australia) in 2022. Notably, however, Australian investors are more confident in their investment knowledge than their global peers.

The GIS results suggest that navigating investment markets has been a humbling experience for many investors, as returns have fallen. However, investors’ return expectations for the next five years have grown compared to 2022, suggesting there is a degree of optimism for the outlook for the future.

The GIS found the vast majority of investors agree they are witnessing a new regime in policy and market behaviour, and that most have changed, or intend to change, their investment strategy as a consequence. 

A number of investment thematics have become more attractive to investors. The most popular is internet and technology investments which are of interest to 57 per cent of investors globally (51 per cent in Australia), while 48 per cent of investors globally and in Australia are more attracted to real estate. Gold, silver and precious metals are more attractive to 43 per cent of investors globally (39 per cent in Australia), while 40 per cent of investors globally (33 per cent in Australia) identify crypto currencies as an area of interest. 

The study also highlights the importance of active fund management for many investors, while private assets were recognised as an essential diversifying tool with the democratisation trend continuing to gather pace.

The GIS found most investors believe they can easily access private asset markets, principally through their financial adviser, and are interested in competitive returns and opportunities for diversification. In all, 41 per cent of global investors (39 per cent in Australia) say they are interested in private assets as an investment vehicle.

However, there are also a number of barriers preventing investor access, including illiquidity, transparency issues, and inexperience. In addition, the GIS revealed many investors underestimate the necessary hold times for private asset investments, with 28 per cent of investors globally (22 per cent in Australia) expecting to hold for them for a year or less. 

Unsurprisingly, investors are attracted to private asset instruments that they are likely to be more familiar with, such as private equity or real estate. Conversely, they are less attracted to more complex, or opaque, instruments like microfinance or private debt.

As for what investors consider when choosing a private asset investment, the GIS found the reputation of a brand and manager was the most cited consideration.

Ray Macken, head of client group said: “The Australian investor experience is largely shifting alongside global trends. Recent economic and market volatility has definitely hit the confidence of many investors in Australia, but it’s hardly a unique trend and is something that is clearly being felt right around the globe,” Mr Macken says.

“That more Australian investors are considering private assets as an investment vehicle is interesting, however, there needs to be more and better investor education around the asset class. Many underestimate the holding times required for private assets investing as well as its illiquidity, believing it is one year or less when in fact it takes many years to realise returns on investment.”

“While there are many considerations for investors in private assets, it’s unsurprising that the reputation of a brand and manager of a private asset fund is cited as the most important consideration.”

“What is undeniable is that we are entering a new investment regime when it comes to policy and market behaviour and that most investors have adjusted, or will be looking to adjust, their investment strategy. Investors will continue in search of expert guidance in this new regime as volatility has returned, and therefore so too has the opportunity set for active management. We feel ‘higher for longer’ is a much better environment for stock-pickers and asset allocators.”

About the Schroders Global Investor Study

The Schroders Global Investor Study 2023 explores the behaviours and attitudes of over 23,950 people (including 1,000 in Australia) in 33 locations around the world, between 26th May and 31st July 2023.

This research defines ‘people’ as those who will invest at least €10,000 (or the equivalent) in the next 12 months and who have made changes to their investments within the last 10 years. These individuals represent the views of investors in each location included in the survey.

Read the report.

Source: Schroders

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Zac Leman

The newly launched Schroder Concentrated Australian Equity Portfolio has been added to the BT Managed Portfolios available through the BT Panorama platform, in response to adviser demand for a separately managed account (SMA) with an objective to outperform the S&P/ASX 200 Total Return Index over the medium to long term.

Head of Client Group at Schroders Australia, Ray Macken, said: “Advisers can confidently recommend to their clients a professionally managed and benchmark-aware portfolio of select Australian equities.”

The portfolio offers an actively managed concentrated portfolio of between 18-26 investments in Australian shares, and is co-managed by Adam Alexander and Ben Chan, two experienced and proven investment professionals. They have established a seven-year track record in running Australian equities SMAs, with top quartile performance*, since co-managing a similarly structured SMA from 2016.  They are part of the stable, award-winning and highly-rated Schroders Australian equities team, headed by industry stalwart Martin Conlon.

Mr Alexander said: “Schroders’ 11-strong Australian equity team is one of the largest and most experienced in the Australian market. The size and scale of the team allows for waterfront stock coverage across the ASX 200 and into the ASX 300 without having to compromise on breadth or depth.”

“Stocks are valued using the Schroders investment process, which helps to avoid confirmation bias. The team of portfolio managers also have the advantage of being able to draw on the insights of Schroders’ worldwide investment team, as well as a collection of proprietary investment tools that provide us with a competitive edge,” Mr Chan said.

Mr Macken said advisers are increasingly recognising the benefits of SMAs for themselves and their clients.

Mr Macken said: “Investors receive the benefits of direct share ownership, but with the important added advantage that the stocks are selected by an investment process that has been honed over 25 years’ experience of managing Australian equities.

“The result is transparency and flexibility for clients, who can see what selected stocks they hold, but with none of the administrative and compliance burdens associated with managing direct shares for advisers.”

Zac Leman, Head of Managed Accounts, BT, said demand for managed accounts remains strong.

Mr Leman said: “Funds under administration (FUA) in managed portfolios on BT Panorama increased by 18 per cent in the year to 31 August 2023, with managed portfolios now comprising over 13 per cent of total platform FUA.

“Schroders’ new SMA is a welcome addition to the platform. It will appeal to a broad range of advisers and their clients who are seeking an Australian equities solution that offers transparent portfolio management, efficient rebalancing, and swift execution of transactions.”

The Schroder Concentrated Australian Equity Portfolio has a Recommended rating from Lonsec**.

———

[1] Top quartile performance as measured by Zenith Investment Partners in the Performance Update Report dated 30 June 2023 for the portfolio managers managing the Evans & Partners Australian Equities Growth Separately Managed Account. Performance is measured against the S&P/ASX 300 Accumulation Index. Inception is April 2011.
[2] The rating issued October 2023, is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report.

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He joins Schroders from MLC Asset Management, where he was the Director of Institutional business since 2019. Prior to this, Mr Keenan held a dual business development/investment role at JCP Investment Partners for almost nine years.

During his 17-year career Mr Keenan has also worked in client relationship roles at Hastings Funds Management and as an institutional foreign exchange dealer at Bank of Ireland Global Markets.

Mr Macken says Mr Keenan brings an impressive breadth and depth of experience to the role.

“Colin is an accomplished investment professional with 17 years’ experience in a variety of roles in the financial services industry, from institutional business development to goal-driven investment team positions across multiple asset classes,” Mr Macken says.

“Colin will be tasked with servicing our institutional clients predominantly in the southern states and working with them to provide solutions across Australian and global equities, private markets, fixed income and multi-asset. We are thrilled to welcome someone of Colin’s calibre and disposition into our team.”

Mr Keenan begins the new role on 15 November 2022.

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Lonsec identified the “differentiated, highly unconstrained, contrarian investment philosophy that employs a patient, disciplined investment process” as a key strength.

The Schroder Global Recovery Fund is a benchmark-unconstrained strategy, focusing on global companies that exhibit classic recovery characteristics — stocks that trade on low multiples of recoverable profits, with good long-term prospects. From a sector perspective, the fund is well diversified.

Schroders’ Head of Sales, Ray Macken said: “We are delighted that Lonsec has recognised and valued the unique approach of the Schroder Global Recovery team. In a climate of lower interest rates, investors should consider funds in their portfolio that have the potential to deliver higher performance over the longer term. By seeking out cheap businesses with sensible balance sheets, and by refusing to succumb to the current market’s animal spirits, the Global Recovery team is confident it can deliver on precisely that client need.”

Nick Kirrage, Co-Head of the Global Value team in London, said: “With more than 90% of the market tilted to growth, most investors don’t even realise how biased their portfolios are. If clients want value exposure, there are actually very few ‘true to label’ managers practising value investing today.”

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