Schroder Euro Equity Fund Posts 9.1% Return in Q1

"Top-Tier Performance Among Peer Funds...
Eurozone Gaining Attention as an Alternative Investment Destination"

Schroders Investment Trust Management announced on April 22 that the 'Schroder Euro Equity Fund' recorded a 9.1% return over the past three months and a 13.3% return over the past year, achieving top-tier performance among funds of the same category.

The Schroder Euro Equity Fund is a feeder fund that invests in the offshore fund 'Schroder ISF EURO Equity,' which is managed overseas. The fund seeks long-term capital gains by broadly including not only mid- and large-cap stocks but also small-cap stocks from eurozone countries that are members of the Economic and Monetary Union (EMU).

As of the end of last month, the country allocation of the Schroder Euro Equity Fund was as follows: Germany (27.4%), France (17.0%), Italy (12.2%), Sweden (8.2%), and Spain (6.8%). By sector, the fund has a high allocation to industrials, financials, IT, and healthcare. Major holdings include Germany's SAP, France's AXA, the Netherlands' Airbus, France's BNP Paribas, and the Netherlands' ASML.

A representative from Schroders Korea explained, "The European stock market has been on an upward trend since the beginning of this year, increasing investment opportunities in individual companies. Accordingly, we have expanded the number of holdings from the previous 45-60 to over 60, the maximum level."

Regarding the recent tariff measures announced by the United States, the representative added, "While the eurozone stock market is experiencing a temporary decline, the impact of tariffs is relatively limited compared to Asia, which has a higher dependence on exports. Defensive sectors such as banking, healthcare, utilities, and defense are expected to be relatively resilient to uncertainty."

Martin Skanberg, manager of the Schroder European Equity Fund, stated, "We are building a well-diversified and balanced portfolio of value and growth stocks through an investment strategy that is not biased toward any particular style and is based on empirical data." He emphasized, "So far this year, the market has experienced rapid shifts and volatility due to various factors. The news of DeepSeek's launch of a low-cost AI model highlighted the need to shift investments from large-cap U.S. stocks to other opportunities. In response to expectations for increased defense spending by European countries, we have increased the fund's allocation to defense companies."

Jung Eunsoo, CEO of Schroders Korea, said, "As a global asset management company with a strong local presence in Europe, Schroders builds a diversified portfolio through accumulated management experience and expertise. Based on solid fundamentals, we will continue to provide ample opportunities for investors seeking long-term capital growth."