Schroder Global Equity Income Fund Z Accumulation GBP

Global Equity Income

Rated fund 2015-19. Takes a patient, value-investing approach

Schroder Global Equity Income had a change of manager in April 2018, when income heavyweight Ian Kelly left Schroders to pursue other opportunities.

Simon Adler and Nick Kirrage took over the running of the fund and follow the same value-oriented approach. This means they seek to outperform the market over time by buying stocks for less than their worth.

At the same time, they look for positive and sustainable income trends in companies, aiming to invest in stocks that not only pay a high income at the time of purchase, but which also have solid prospects for increasing dividends.

In order to find suitable stocks, the pair combines analysis of global growth trends, interest rate cycles and currencies with analysis at a company level, looking at key metrics such as capital discipline, operational efficiency and stability of earnings.

They aim to find good opportunities globally to invest in robust, well-managed, cash-generative businesses with sustainable earnings power. As they are buying stocks that are trading at a significant discount to their intrinsic value, this means adopting a long-term investment horizon, waiting for them to come back into favour and for market sentiment to improve, leading to a higher share price.

At the end of 2018, the fund had 36 holdings and was significantly overweight the unloved UK market. It accounted for almost 34% of the fund versus 6% of the MSCI World benchmark. The fund was underweight the comparatively more expensive US market, with an allocation of a little over 16% versus 66% for the index.

The fund yields 3.7% and pays income half-yearly.

Narrative and ratings content all as of 01 January 2019.

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Schroder Global Equity Income Fund Z Accumulation GBP
Schroder Unit Trusts Limited
Unit Trust
Global Equity Income
0.95 %
Risk Rating
3 Year Sharpe
3 Year Alpha
4.2 %
The Fund aims to provide income and capital growth in excess of the MSCI World (Net Total Return) index (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of companies worldwide.
Holding %
Sanofi SA 5.20 %
Standard Chartered PLC 5.10 %
South32 Ltd 5.09 %
Eni SpA 4.66 %
Kia Motors Corp 4.22 %
HSBC Holdings PLC 4.15 %
American International Group Inc 4.11 %
Anglo American PLC 4.04 %
Pearson PLC 3.88 %
Morrison (Wm) Supermarkets PLC 3.85 %
Region %
United Kingdom 35.26 %
Eurozone 23.03 %
United States 19.91 %
Asia - Developed 6.65 %
Australasia 5.40 %
Sector %
Financial Services 31.83 %
Consumer Cyclical 16.96 %
Technology 11.86 %
Basic materials 11.86 %
Energy 10.08 %
Consumer Defensive 6.34 %
Healthcare 5.52 %
Schroder Unit Trusts Limited
EC2Y 5AU, London, United Kingdom
Legal Structure
Unit Trust


Nick Kirrage
Joined 04/01/2018

Nick joined Schroders in 2001, initially working as part of the Pan European research team providing insight and analysis on a broad range of sectors from Transport and Aerospace to Mining and Chemicals. In 2006, Nick and Kevin Murphy took over management of a fund that seeks to identify and exploit deeply out of favour investment opportunities. In 2010, Nick and Kevin Murphy also took over management of the team's flagship UK value fund seeking to offer income and capital growth. Qualifications: CFA Charterholder; Meng in Aeronautical Engineering from Bristol University.

Simon Adler
Joined 04/01/2018

Simon Adler is a Co-manager of Global Recovery and Global Income strategies. His investment career commenced in 2008, at Schroders as a UK equity analyst and has worked as a sector analyst responsible for Chemicals, Media, Transport, Travel & Leisure and Utilities, as well as Global Sustainability Specialist in Global Equity team until 2016. He Joined the Global Value Team in July 2016. Simon is a Chartered Financial Analyst and MA in Politics from Edinburgh University.

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