Fund Objective

The Schroder Institutional Overseas Equity Funds investment objective is to achieve capital growth.

View on Past Performance

Global equity markets fell in the second quarter, with investors increasingly fearful of the prospects of a slowing global economy and potentially higher interest rates as central banks struggle to control inflation, which is being pushed up by higher food and energy prices.The portfolio outperformed the MSCI World Index, with stocks in the US and continental Europe adding most value. The consumer discretionary, healthcare and financials sectors contributed most to performance on a global basis. This more than offset weaker returns from Pacific ex Japan, and the technology sector.

Future Expectations

We expect global growth to continue slowing overall, with activity in developed economies in particular weakening, while growth in emerging market economies remains healthier. The economic slowdown will create slack, see unemployment tick up and, in turn, this will help alleviate pressure on wage inflation.Key to the global outlook over the next 12 months is the oil price, as the risk of an oil crunch is clearly underway if supply and demand conditions remain as they are now. Demand from China and other large emerging market economies have not shown strong signs of deceleration at this point.

Fund Details