Schroder GAIA Contour Tech Equity

Investment rationale

The fund is designed to provide a positive return in excess of the Secured Overnight Financing Rate (SOFR) after fees over a three-year period through global equity investing, including emerging markets, using both long and short positions. It carries a Summary Risk Indicator of 4 out of 7, and investors should be prepared to remain invested for at least 3 years. The intended investor is a retail investor with basic investment knowledge who is more focused on maximising long-term returns than minimising short-term losses and who can bear large short-term losses. Given its sector focus on technology, media and telecommunications and its ability to run net short, use leverage and derivatives extensively, it is a distinct, specialist allocation rather than a broad market holding.

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How the strategy works

The fund aims to provide a positive return after fees over a three-year period by investing in equities worldwide, including emerging markets, targeting returns in excess of SOFR after fees over that period. It is actively managed and invests in long and short equity positions, primarily in companies in or connected to the technology, media and telecommunications sectors, while also being able to invest in other equities; it invests directly in physical holdings and indirectly through derivatives, may use leverage, may invest up to 10% in open-ended investment funds, and may exceptionally hold up to 100% in cash. The target benchmark is SOFR, while the comparator benchmark is the S&P 500 NR and is used for performance comparison only; the manager invests on a discretionary basis with no restrictions on deviation from the comparator benchmark. The share class is USD-denominated, deals daily, settles T+3, accumulates income rather than distributing it, and has a recommended holding period of 3 years.

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Investment philosophy

• The fund invests globally in equities, including emerging markets, and focuses on companies in or connected to the technology, media and telecommunications sectors, while retaining the flexibility to invest in other equities.

• Portfolio construction combines physical holdings and derivatives, with both long and short positions; when these are combined the fund may be net long or net short, and derivatives may be used extensively for investment gains, risk reduction or efficiency.

• At 31 August 2026, exposure showed 95.7% equity long and -101.1% equity short, producing net exposure of -5.4% and gross exposure of 196.8%.

• At 31 August 2026, sector net exposures were Software 2.3%, Internet 9.2%, Other -4.9%, Enterprise Tech -15.0%, Business services -9.3%, Semis 13.6%, Media/Telco -9.4%, Fin Tech 7.3% and Video Game Software 0.8%.

• At the same date, the largest disclosed long positions were Block (9.7%), Trimble (7.0%), Taiwan Semiconductor Manufacturing (4.7%), Wayfair (4.6%), Alphabet (4.5%), Eaton (4.4%), Lyft (4.2%), Iron Mountain (4.2%), Ferrari (4.0%) and AUTO1 Group (3.7%); the fund may invest up to 10% in open-ended funds and may exceptionally hold up to 100% in cash.

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Management team

The fund manager is David Meyer of Contour Asset Management. He has managed the fund since 20.12.2017, which is also the fund and share class launch date.

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Distinctive features

The fund combines a specialist technology, media and telecommunications equity remit with the flexibility to invest globally, including in emerging markets, and to run both long and short books. Its structure allows extensive derivative use, leverage, and the ability to be either net long or net short, which is reflected in the negative net exposure and high gross exposure at 31 August 2026. It is daily dealing and the share class is accumulating, while performance is measured against a cash-rate hurdle of SOFR rather than an equity index target. The portfolio at that date also showed differentiated implementation through sizable single-stock long positions such as Block, Trimble and Taiwan Semiconductor Manufacturing and through named sector short exposure.

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Risks

The fund has a risk category of 4 out of 7, described as a medium risk class, and the category is based on historical performance data and may change. Named risks include concentration risk, counterparty risk, currency risk, derivatives risk, liquidity risk, market risk, operational risk and performance risk. These risks are linked to the fund’s structure and positioning because it can concentrate in limited regions, sectors, markets or positions; invest globally including emerging markets; use derivatives extensively on both the long and short side; use leverage; and invest through counterparties. The fund does not have the objective of sustainable investment or binding environmental or social characteristics under SFDR.

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Asset manager

The management company is Schroder Investment Management (Europe) S.A., a member of the Schroders Group, and it is authorised in Luxembourg and regulated by the CSSF. The fund manager is David Meyer of Contour Asset Management. The fund is domiciled in Luxembourg and is structured as an open-ended UCITS sub-fund of Schroder GAIA. Schroder Investment Management (Switzerland) AG is the Swiss representative.

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