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
0.94 %
Risk Rating
3 Year Sharpe
3 Year Alpha
3.5 %
The Fund aims to provide income and capital growth by investing in equity and equity related securities of companies worldwide. The Fund invests at least 80% of its assets in equity and equity related securities of companies worldwide which offer sustainable dividend payments. The Fund seeks to invest in a diversified portfolio of equity and equity related securities whose dividend yield in aggregate is greater than the average market yield. Equities with below average dividend yield may be included in the portfolio when the Investment Manager considers that they have the potential to pay above average income in future. The Fund may also invest in collective investment schemes, warrants and money market instruments, and hold cash.
Holding %
South32 Ltd 5.90 %
Sanofi SA 5.09 %
Eni SpA 5.06 %
American International Group Inc 4.99 %
Standard Chartered PLC 4.49 %
Morrison (Wm) Supermarkets PLC 4.33 %
Anglo American PLC 4.28 %
Centrica PLC 4.21 %
Pearson PLC 4.12 %
Kia Motors Corp 4.02 %
Region %
United Kingdom 35.83 %
Eurozone 23.13 %
United States 18.69 %
Asia - Developed 7.15 %
Australasia 6.07 %
Japan 5.11 %
Sector %
Financial Services 30.65 %
Consumer Cyclical 16.53 %
Basic materials 12.55 %
Technology 11.80 %
Energy 9.41 %
Consumer Defensive 6.63 %
Healthcare 5.23 %
Schroder Unit Trusts Limited
EC2Y 5AU, London, United Kingdom
Legal Structure
Unit Trust


Nick Kirrage
Joined 04/01/2018

Nicholas Kirrage is a Co-head of the Global Value Team at Schroders, and a founding member in 2013 of this team of value investors who manage UK, European and global portfolios . He is co-manager of the Schroder UK Income, Schroder UK Recovery and Global Recovery funds. He joined Schroders in 2001 and is based in London. Nicholas was a Fund Manager and Analyst at Schroders from 2001 to 2013, commencing his career in the Pan European research team with responsibility for Transport, Metals & Mining and Aerospace and Defence sectors. He became a co-fund manager in 2006 of the Schroder Recovery Fund and in 2010 of the Schroder Income Fund. Qualifications: CFA Charterholder; Meng in Aeronautical Engineering from Bristol University.

Simon Adler
Joined 04/01/2018

Simon Adler is a Fund Manager at Schroders, responsible for co-managing UK institutional value/ESG portfolios within the Global Value team. Schroders team of value investors manage UK, European and global portfolios. He joined Schroders in 2008 and is based in London. Simon was a Fund Manager and Analyst at Schroders from 2008 to 2016, commencing his career as a sector analyst responsible for Chemicals, Media, Transport, Travel & Leisure and Utilities. He became a Global Sustainability Specialist with fund management responsibilities in the Global Equity team in 2015. Qualifications: CFA Charterholder; MA in Politics from Edinburgh University.

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