Key Highlights

  • The fund applies a high-conviction, actively managed approach, concentrating its portfolio into 60 companies worldwide.
  • Technology holds the largest sector weighting at close to a third of the portfolio, while the fund carries no allocation to real estate or utilities.
  • The ten largest holdings make up 35.93% of the portfolio, led by Nvidia Corporation at 6.22%.
  • The fund is classified within the Equity World Large Blend category and is benchmarked against the MSCI ACWI NR AUD index.

The Schroder Global Equity Alpha Fund - Active ETF trades on the ASX under the code ALPH and was admitted to the exchange on 9 December 2024, making it a more recent addition to the exchange's range of actively managed global equity products. The fund is actively managed and invests in listed equities of companies worldwide, with the manager describing it as an 'Alpha' fund — one that invests in companies where the Investment team holds a high conviction that the prevailing share price does not reflect the business's future prospects.

The manager's stated approach is to identify companies expected to deliver future Earnings growth above the level anticipated by the broader market, typically assessed on a three-to-five-year horizon, an approach the manager refers to as targeting 'a positive growth gap'. The fund carries a management fee of 0.65% per annum and an ISIN of AU0000358962.

Sector Composition

Technology is the fund's largest sector exposure at 30.87%, broadly in line with the 30.17% category average. Financial services follows at 18.62%, above the category figure of 16.81%, while healthcare sits at 13.11% compared with a category average of 10.26%. Communication services is allocated 11.24% of the portfolio, and consumer defensive stocks 10.96% — the latter notably above the 4.90% category average.

Industrials and consumer cyclical exposure sit below their respective category averages, at 8.28% versus 10.54% and 5.06% versus 8.96%. Energy is allocated 1.86% against a category average of 3.54%. The fund carries no exposure to real estate or utilities, both of which stand at 0.00%, compared with category averages of 1.19% and 1.88% respectively — a clear point of difference from the broader Equity World Large Blend category.

Geographic Exposure and Market Capitalisation

The United States accounts for 65.45% of the fund's geographic exposure, followed by the United Kingdom at 6.27% and Japan at 5.02%. Taiwan contributes 3.57%, France 4.04%, Germany 2.80%, Spain 1.97%, Italy 1.78%, Austria 1.73% and the Netherlands 1.38%.

In terms of market capitalisation, 99.30% of the portfolio is invested in companies valued above $1 billion, with the remaining 0.69% in the $500 million to $1 billion range and no allocation below that threshold, reflecting a portfolio concentrated in larger, more established businesses.

Concentrated Holdings

The fund holds 60 companies in total, a notably smaller number than many broadly diversified global equity funds, consistent with its high-conviction mandate. The ten largest holdings account for 35.93% of the portfolio, led by Nvidia Corporation at 6.22%, Alphabet Inc. at 4.95% and Microsoft Corporation at 4.46%.

Broadcom Inc., Taiwan Semiconductor Manufacturing Company, Visa Inc. and SAP SE also feature among the top holdings, alongside Meta Platforms, Mitsubishi UFJ Financial Group and Recruit Holdings, with individual weightings ranging from 2.35% to 3.59%.

Conclusion

The Schroder Global Equity Alpha Fund - Active ETF is structured around a concentrated portfolio of 60 global companies selected on the basis of the manager's conviction in their future earnings growth relative to market expectations. Its sector composition leans toward technology, financial services and consumer defensive stocks, while the fund holds no exposure to real estate or utilities, distinguishing it from broader-based global equity benchmarks. With geographic exposure weighted toward the United States and a management fee of 0.65%, the fund's structure reflects a stock-selection-driven strategy rather than one built around broad index replication.