Schroders Brasil

Investment Philosophy

Schroders manages assets based on levelheaded and detailed market analyses, carried out by its own team of analysts.

All decisions made by Schroders Investment Management Limited (SIM) Brazil are guided by the objective to add value to our clients and surmount the market average performance. To accomplish that, Schroders has analysts based regionally, responsible for providing consistent support material to the company’s investment committee.

Company evaluations are based on qualitative analyses of relevant data, such as management quality, balance stability and that company’s operation niche.

Analysts use standard methodology, adopted by all Schroders’ offices in the world, which offer all the necessary tools to assess result statements, cash flow and balance sheets and to calculate the relevant rates from consistent definitions.

A complete database (Global Research Database) is available to all Schroders Brazil professionals, which gives them instant access to analyses and templates developed by the company's analysts.

With all such tools, Schroders is able to adopt a flexible behavior and to match performance to safety, surpassing benchmarks both in recession and in economic growth periods.

Risk and Safety Analysis

Schroders has a refined analysis and risk control strategy in the market. All its offices in the world and their corresponding products are monitored by a risk group headquartered in London.

In Brazil, a local risk committee is in charge of analyzing if the company's products performance agrees with the parameters established for each of them. Every fifteen days, this committee gets together and analyzes the position of funds - for instance, if in fact they adhere to the proposed model and if the allocation of securities complies with the product's risk limit.

For such analyses, Schroders has a quantitative risk analyses system called SPARTA (Schroder Performance and Risk Tracking Analyser). With it, managers can check the portfolios from different parameters, and have a broad picture of the risks that may occur to surpass a benchmark.

Schroders also have a proprietary risk management system, called PRISM (Portfolio Risk /Investment Strategy Manager). This online platform allows portfolio simulations, analyzes tracking error and beta, deconstructing the portfolio risk by sector and measures. The results of such studies must also add important grounds to managers' decision making in investment processes.

Besides this system, all Schroders' offices in the world are interconnected by means of intranet, which grants managers from any country the possibility to access information on products offered by the other offices, including the analysis of local risks.

For the multi-market funds, Schroders Brazil uses the MAPS system, developed by the Risk Office, daily and automatically updated, based on the systems of the Futures and Commodities Exchange (BM&F) and São Paulo Stock Exchange (Bovespa).

Monthly, Schroders Brazil's risk committee sends complete reports on the position of its funds to the headquarters in London. There, every three months, another committee takes care of analyzing if the products match the established proposals. Whenever necessary, the fund manager is invited to participate in this meeting in conference call.

The interaction among the offices and the constant monitoring of the local activities adds even more safety to Schroders Brazil's client investors.

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