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Schroders private equity fund upgraded, added to AMP MyNorth

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MEDIA RELEASE: The Schroder Specialist Private Equity Fund has been upgraded to Recommended by research house Lonsec. The move follows its recent addition to the AMP MyNorth platform. This is the eighth platform inclusion for the fund, and follows increased demand from investors and their advisers for private equity investment.

Schroders Australia alternatives director, Claire Smith, said the fund has been designed to provide access to more investors with a lower minimum investment, a semi-liquid structure and competitive fees.

“Traditionally it has been hard for many smaller investors to access the private equity market, leaving it in the realm of big institutions, but we are seeing more demand and we’ve designed the fund with this in mind,” Ms Smith said.

The fund offers potentially higher returns and greater portfolio diversification by accessing the often hard-to-reach global private equity markets.

“The fund focuses on small-mid cap specialist opportunities across the US and Europe, as well as Asian growth companies. This segment has historically outperformed the wider private equity market and sets the fund apart from others available to Australian investors.

“Investors are chasing growth in the current low interest rate environment. This has pushed up stock prices in exchanges across the world, yet many of these market valuations remain high and there is still a fair amount of volatility around.

“Private equity funds offer access to a broader universe of companies than those listed on public exchanges, including many early stage and growth-orientated companies. In fact, there are an increasing number of early-stage businesses that are looking for capital outside of the public markets.

“Even before the COVID-19 pandemic, many businesses were turning away from measures such as initial public offerings to raise capital for various projects. The Schroder Specialist Private Equity Fund is a facilitator in providing capital to these early-stage growth companies.

“The fund aims to generate an absolute internal rate of return of 10 per cent to 12 per cent, net of fees, over periods of five years and longer, which can be attractive for an investor with a long-term investment horizon,” Ms Smith said.

The Fund also has a “Recommended” rating from Zenith and is also available on BT Panorama, BT Wrap, Macquarie Wrap, uXchange, Xplore Wealth, Hub24, and Netwealth.

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