- 57.7% of Schroder’s funds have a history of underperformance, with 56 of the 97 funds analysed receiving a poor one or two-star rating.
- Out of the 97 Schroder's funds analysed, 13 managed to consistently rank among the top performers in their sectors and received a top 4 or 5-star rating.
- The Schroder's Global Equity fund has been one of their top performing funds with growth returns of 26.52% & 92.34% over the past 1 & 5 years in the IA Global sector.
- The Schroder's European Alpha Plus fund was one of their worst performers. This fund consistently ranked among the worst performers within the IA Europe ex UK sector over the past 1, 3 & 5 years.
With £777.4 billion under management, Schroder's is one the largest and most popular wealth management firms among UK investors. Yet our analysis of their fund range identified that 57.7% have underperformed when compared to their sector peers, with only a select minority achieving top performance ratings.
In this analysis we evaluate the performance of 97 Schroder's funds across the recent 1, 3, and 5-year periods, and identify which of their funds have performed the best and which have struggled compared to their competitors.
Schroder Funds Performance
We analysed the performance and sector ranking of 97 Schroder funds over the past 1, 3 & 5 years, providing each with an overall performance rating.
Our analysis of these 97 funds revealed that only 13 funds received a top performing 4 or 5 star rating.
57.7% of the funds underperformed, with 32 receiving a two-star rating and 24 earning just one star. These figures indicate that the vast majority of Schroder funds have struggled for performance to compared to their sector peers over the past 1, 3 & 5 years.
This analysis underscores the necessity of meticulous fund selection, as Schroder's and other fund management firms have funds that outperform or underperform their peers. Investors must carefully choose funds that match their risk tolerance and long-term growth goals.
5 Top Performing Schroder Funds
The table below highlights the 5 best-performing Schroder funds, providing a detailed overview of their performance over the most recent 1, 3, and 5-year periods.
These funds have consistently been among the top performers within their respective sectors, earning them each a top 4 or 5-star rating.
Schroder Asian Discovery Fund
Launched in March 2012, the Schroder Asian Discovery fund currently oversees a substantial £157.86 million in client assets. This actively managed fund is designed to achieve capital growth by investing in small and mid-cap companies across Asia, excluding Japan. Its goal is to outperform the MSCI AC Asia ex Japan Small Mid Cap (Net Total Return) index over three to five years, after fees.
The fund has demonstrated impressive performance within the competitive IA Asia Pacific Ex Japan sector. Over the past year, it achieved growth of 23.05%, surpassing the sector average of 16.5%. Its three-year performance was also strong, with growth of 8.15% compared to the sector average of 0.64%. Over five years, the fund generated a return of 51.39%, outpacing the sector average of 28.19%.
This outperformance is largely due to the management team’s rigorous selection process. They focus on identifying companies with solid fundamentals and strong growth potential. This disciplined approach has led to significant allocations across various sectors, including emerging industries in Asian markets. The fund is geographically diversified, with investments across countries like India, Taiwan, and the Philippines. This broad reach helps to spread risk and capture growth opportunities throughout the region.
Schroder Atlas Master Trust Multi-Asset Portfolio 1
The Schroder Atlas Master Trust Multi-Asset Portfolio 1 fund is one of the top-performing Schroder funds and aims to deliver long-term growth through a diverse range of asset classes. These include equities, fixed interest, cash, property, and alternative investments, both within the UK and internationally. With £539.35 million in assets under management, the fund offers moderate risk exposure, making it ideal for investors seeking growth with balanced risk.
The fund's track record is exceptional. Over the past year, it achieved growth of 23.63%, well above the sector average of 13.51%, ranking 2nd out of 490 funds in the sector. Its three-year performance of 17.64% was also remarkable, significantly outperforming the sector average of 7.31%.
Over the past 5 years the fund posted returns of 51.11%, considerably exceeding the sector average of 21.23%, and ranked 1st out of 434 funds in the sector.
The fund’s success is driven by its balanced asset allocation, commitment to sustainable investments, and broad geographical diversification. It's geographical reach spans major regions, including the United States, Eurozone, the UK, developed Asia, and emerging markets, providing exposure to diverse economic landscapes. This actively managed fund has consistently done well in adapting to market changes to optimise returns and manage risk effectively.
Schroder Global Equity Fund
The Schroder Global Equity I Acc fund, with approximately £1.86 billion under its management, is designed to provide capital growth by outperforming the MSCI World (Net Total Return) (GBP) index over three to five years, after fees. It invests at least 80% of its assets in equities and equity-related securities of companies globally.
This fund has consistently been a top performer in the IA Global sector, earning a 5-star rating for its impressive track record. Over the past 1, 3 & 5 years, the fund has delivered impressive returns of 27.52%, 28.49%, and 92.34%, respectively. In comparison, the sector averages for these periods were 21.65%, 14.21%, and 58.5%.
The fund's strategy focuses on maintaining a well-diversified portfolio across sectors and regions worldwide. It holds significant allocations in technology, financial services, and industrials. Notable holdings include Microsoft Corp, NVIDIA Corp, and Alphabet Inc. This broad diversification helps to spread risk and capture growth opportunities across various economic landscapes.
The fund aims to identify companies expected to exceed market earnings growth, using a style-agnostic approach. This flexibility allows it to adapt to different market conditions, enhancing its potential to deliver strong returns regardless of economic cycles.
Schroder Global Multi-Asset Balanced Portfolio Fund
Launched on 10th January 2017, the Schroder Global Multi-Asset Balanced Portfolio F has established itself as a standout performer within Schroder’s multi-asset fund range. The fund aims to deliver capital growth and income by investing in a diversified mix of assets and markets worldwide. It targets an average volatility of 8% per annum over a rolling five-year period, balancing growth with controlled risk.
This £110.99 million fund has demonstrated notable performance, consistently outperforming its sector peers. In the past year, the fund delivered a robust return of 16.13%, significantly outpacing the sector average of 14.19%. Its 3 year return of 8.61% doubled the sector average of 4.48%, while its 5 year return of 22.96% was above the sector average of 17.52%. These returns position the fund among the top performers in the IA Mixed Investment 20-60% Shares sector.
A key factor behind its strong performance is its diversified asset allocation, which captures growth opportunities across various markets while spreading risk. Additionally, the fund employs strategies to manage volatility and protect against downside risks, resulting in more stable performance over time.
Schroder Income Maximiser Fund
Established in 2005, the Schroder Income Maximiser Z Acc fund currently manages £764.92 million, focusing on UK equities. Its primary objective is to provide income and capital growth by investing in UK equity and equity-related securities. The fund aims for an annual income of 7%, though this is not guaranteed and may fluctuate based on market conditions.
The fund’s strategy has consistently yielded strong results, ranking it among the top performers in the IA UK Equity Income sector. Over the past 1, 3, and 5 years, the sector averaged returns of 20.57%, 19.12%, and 30.24%, respectively. In comparison, the Schroder Income Maximiser Z Acc fund achieved higher growth of 21.86%, 32.69%, and 46.75% over these same periods.
The substantial growth achieved by the fund, particularly when compared to its sector peers, highlights its effectiveness in identifying and capitalising on opportunities within the UK equity income market.
The fund’s portfolio is diversified across key sectors, with significant allocations in financial services, consumer defensive, and consumer cyclical industries. Its top holdings include established companies such as NatWest Group PLC, British American Tobacco PLC, Barclays PLC, HSBC Holdings PLC, and Shell PLC, all of which contribute to stable income generation.
5 Worst Performing Schroder Funds
As highlighted in our performance analysis, 56 of the Schroder funds have underperformed relative to their sector peers.
Below, we feature 5 funds under the management of Schroders that have consistently ranked among the very worst in their sectors for performance, with each fund receiving a poor 1 star rating.
Schroder European Alpha Plus Fund
The Schroder European Alpha Plus Z Acc fund is one of the worst performers within Schroder’s range and the IA Europe ex-UK sector.
The fund is designed to achieve capital growth exceeding the FTSE World Series Europe ex UK index (net of fees) over 3 to 5 years, however it has consistently struggled for performance. Over the past 12 months the fund returned growth of 8.37%, which was less than half the sector average of 16.88%. The funds 3 year year performance was particularly poor as it returned negative growth of -11.81%, compared to the sector average of 10.89%. Over 5 years, the fund managed minimal growth of just 0.27%, which ranked a poor 118th out of 120 funds in the sector.
The fund’s poor performance can be attributed to several factors. Its concentrated portfolio increases sensitivity to individual stock performance, making it vulnerable if specific holdings underperform. As an actively managed fund with a high ongoing charge of 0.99%, it faces the additional burden of higher fees, which can erode returns.
Additionally, European markets have faced heightened volatility due to economic uncertainties and geopolitical challenges, which have weighed on the fund’s returns. Significant allocations to sectors like industrials, technology, and healthcare may have also been impacted by sector-specific slowdowns.
These factors, along with market volatility and sector-specific challenges, have hindered the fund’s ability to meet its growth objectives and have limited its ability to deliver competitive returns.
Schroder Global Sustainable Value Equity Fund
The Schroder Global Sustainable Value Equity I fund aims to deliver capital growth by outperforming the MSCI World (Net Total Return) index over 3 to 5 years. It invests at least 80% of its assets in a concentrated range of equity and equity-related securities of companies worldwide that meet the investment manager’s sustainability criteria.
Managed by Schroders' Global Value team, the fund follows a disciplined value investing approach. This strategy focuses on identifying undervalued companies with strong sustainability profiles, aiming to deliver long-term capital growth while adhering to environmental, social, and governance (ESG) principles.
Despite managing substantial assets of £1.057 billion, the fund has faced challenges in recent years. Over the past five years, it returned 30.36%, significantly below the sector average of 58.5%. However, it outperformed the sector over three years, delivering a 26% return compared to the average of 14.21%. But in the last 12 months performance dipped again with growth of 17.07%, trailing the sector average of 21.65%.
This varied performance underscores the fund's vulnerability to market conditions. While its value-oriented and ESG-focused strategy has excelled during specific times, notably in 2021/2022 when growth stocks saw a significant drop, it has faced challenges in maintaining momentum over the long term and more recently in a market that has largely favored growth stocks.
The fund’s concentration in economically sensitive sectors makes it more vulnerable to market volatility. Additionally, its strict ESG criteria limit investment flexibility, restricting access to some high-growth stocks and further impacting returns.
Schroder Managed Balanced Fund
The Schroder Managed Balanced Z Acc fund currently manages £1.87 billion in assets and has consistently ranked among the worst performers within the IA Mixed Inv 40-85% shares sector.
The fund’s goal is to provide capital growth and income by investing in a diversified range of assets and markets worldwide. It is actively managed and primarily invests indirectly through collective investment schemes, exchange-traded funds, real estate investment trusts, and closed-ended funds. Its investments span equity and equity-related securities, fixed and floating rate securities, and alternative assets globally.
Despite this diversified approach, the fund has struggled to deliver competitive returns across different time frames. Over the past year, the fund returned 14.43%, below the sector average of 17.21%. The 3-year return was only 2.86%, compared to the sector average of 8.44%, and the 5-year performance was similarly lacklustre at 27.76%, against a sector average of 29.66%.
Schroder Sustainable UK Equity Fund
The Schroder Sustainable UK Equity Z Acc fund is designed to provide capital growth and income by outperforming the FTSE All Share index over a three to five-year period. It primarily invests in UK companies that meet specific sustainability criteria, focusing on those with strong environmental, social, and governance (ESG) practices.
Following an active management strategy, the fund selects stocks based on sustainability scores and growth potential, typically allocating at least 80% of its assets to a concentrated range of UK equities.
Although it follows a focused ESG strategy, the fund has underperformed relative to its peers. Over the past year, it returned 15.68%, below the sector average of 19.99%, placing it among the worst performers in the IA UK All Companies sector. Its 3 and 5 year returns of 5.77% and 17.59% also fell short of the sector averages of 13.37% and 25.75%, respectively.
Several factors contribute to this poor performance. Economic uncertainty and market volatility in the UK have negatively impacted many UK equities, including the fund’s holdings. Its focus on sectors like healthcare and utilities limits exposure to faster-growing areas, while strict ESG criteria restrict investment choices, potentially excluding high-growth sectors. This concentration on a limited number of stocks increases the fund’s vulnerability to individual stock performance, further contributing to its weaker returns compared to sector peers.
Schroder US Mid Cap Fund
The Schroder US Mid Cap Z Acc fund, classified within the IA North American sector, manages £915.68 million in assets. It aims to achieve capital growth and income that exceed the Russell 2500 Total Return Lagged (Net Total Return) index over a three to five-year period, after fees.
This actively managed fund primarily invests at least 80% of its assets in equity and equity-related securities of medium-sized U.S. companies. These companies are selected based on their market capitalisation, focusing on those within the bottom 40% of the North American equity market at the time of purchase.
Despite its objectives, the fund has faced considerable challenges in recent years. Over the past year, it managed to deliver a growth of 21.40%, trailing the sector's average return of 27.69%. However, the longer-term picture is even more concerning. The three-year return of 15.58% also significantly lagged behind the sector average of 21.14%. Its 5 year performance reached 49.08%, yet it remains far below the sector's strong 84.05% return. These figures places it among the worst performing Schroder funds.
The fund’s focus on mid-cap U.S. stocks exposes it to greater volatility, as mid-sized companies are more sensitive to economic changes than larger firms. Its substantial investments in sectors like technology, industrials, and financial services have also added vulnerability during downturns in these areas. Additionally, while the active management strategy seeks growth, some stock selections have lagged behind the broader market. Economic uncertainties and geopolitical issues in the U.S. have further affected mid-cap stocks, hindering the fund’s performance.
Summary
Our analysis of 97 Schroder funds indicates mixed performance results. 57.7% of their funds underperformed, with 32 receiving a two-star rating and 24 earning a poor one star rating.
This breakdown reinforces that no single fund manager consistently excels in all areas of fund performance. While Schroder offers a wide variety of funds, some of which have excelled, our analysis underscores that no single fund manager dominates in terms of fund performance. It is essential to distinguish between the top-performing funds and the underperformers, regardless of the fund provider, in order to maximise portfolio returns.
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