Storied UK firm, Schroder Investment Management, has rolled out two sustainable global share funds off the portfolio investment entity (PIE) production line.
Released last week, the Schroder Sustainable Global Core PIE Fund along with its hedged counterpart, are offered in NZ under the flag of FundRock NZ (formerly Implemented Investment Solutions).
The funds tap into an underlying international shares strategy managed by Schroder QEP investment team co-leaders Lukas Kamblevicius and Stephen Langford, who follow an enhanced index investment style with a quality-value bent.
Colloquially known as Schroders, the London-headquartered manager also applies several environmental, social and governance (ESG) criteria and carbon intensity targets to justify the sustainable tagline.
According to fund documents: “Schroders actively integrate ESG considerations into the investment process through exclusions, assessments of ESG characteristics of each company (using Schroders’ proprietary ESG ratings), ongoing research of ESG themes, as well as an active programme of company engagement and voting.”
Several other offshore-based managers have released sustainable-flavoured global equity PIEs over the last couple of years including Dimensional Fund Advisors and Stewart Investors (both via FundRock) as well as Salt Funds, which uses Morgan Stanley Investment Management as underlying manager.
While Schroders is a well-known name in the NZ market – serving, for example, as the underlying multi-asset manager for the former AMP Capital funds – the firm has largely played in the institutional market.
But the new PIEs – carrying a price-tag of 0.39 per cent – should give the group an entrée into the NZ adviser and platform markets.
Simon Mead, Schroders institutional sales manager, said in a statement: “Schroders has a longstanding relationship with the New Zealand market across a range of investment strategies, including its QEP Global Core range. On the back of continued client support, we are delighted to launch our first portfolio investment entities. These PIEs will enable us to extend our offering and improve our accessibility to New Zealand investors into 2024 and beyond.”
Last week Schroders also notched up a notable institutional win with a global shares mandate for the Westpac-BT Funds KiwiSaver and retail investment schemes.
The Schroder PIEs use Trustees Executors both as supervisor and custodian (with JP Morgan Securities Australia as sub-custodian) while FundRock sister company, Apex NZ, picks up registry and investment administration duties.
Michael Courtney, FundRock NZ general manager, said the Schroder funds represented an “exciting” addition to the growing suite of global equity strategies tailored for local investors.
Third-party fund marketing firm, Heathcote Investment Partners, represents Schroders in NZ.
FundRock NZ now counts 23 fund-hosting clients following the Schroders agreement with about $5.6 billion under management.