There is no IF as submersible pumps are designed to operate while fully submerged.
Regardless of whether the pump is mounted horizontally or vertically, because the pump will be drawing in water through the pump inlet which is typically located between the pump body and electric motor, without a shroud, there will often be minimal water flow across the motor to draw away the heat created while it is running.
The purpose of the cooling shroud is to ensure water will be continually flowing over the electric motor while the pump is operating since the water being drawn into the pump inlet, will need to enter the one open end of the shroud, which will be located at the motor end of the submersible pump.