Schroder Income Fund Z Accumulation GBP

UK Equity Income

Rated Fund 2018-20. Disciplined value- driven approach      

The impressive long-term track record of Schroder Income earned it Rated Fund status in 2018 and it scooped its first gong in our awards last year when it was named Best Larger UK Equity Income fund. Managers Kevin Murphy and Nick Kirrage apply the same investment approach they have taken with the Schroder Recovery fund, a newcomer to our Rated Funds in 2019. For them, it's all about the price you pay at entry.

Their investment process starts with a number of valuation screens. They aim to identify companies that are trading at significant discounts to their perceived fair values and take a three- to five-year view on the stocks they are buying. The key difference here is the greater focus on dividends. They are ideally looking for stocks with a high dividend yield and income growth. Unlike many peers, they are willing to invest in companies that have cut their dividends if they believe it reflects an inflection point in the company's strategy and share price. The fund yields 4.2% and pays income half-yearly. Significant deviation from its FTSE All-Share benchmark in terms of the sectors and sizes of companies it is exposed to can result in a performance profile that looks erratic on a calendar year basis.

The managers believe that, given the strong run by growth versus value over the last few years, it could be time for value funds to outperform once again. Their deep value style makes this a good complement to a core UK equity income fund.

Narrative and ratings content all as of January 2020.

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Schroder Income Fund Z Accumulation GBP
Schroder Unit Trusts Limited
Unit Trust
UK Equity Income
0.91 %
Risk Rating
3 Year Sharpe
3 Year Alpha
7 %
The Fund aims to provide income and capital growth in excess of the FTSE All Share (Gross Total Return) index (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of UK companies. The Fund is actively managed and invests at least 80% of its assets in a concentrated range of equity and equity related securities of UK companies. These are companies that are incorporated, headquartered or have their principal business activities in the UK. The Fund typically holds 30 to 50 companies.
Holding %
BP PLC 5.21 %
Anglo American PLC 5.08 %
Pearson PLC 5.02 %
Tesco PLC 4.72 %
Morrison (Wm) Supermarkets PLC 4.66 %
GlaxoSmithKline PLC 4.53 %
Standard Chartered PLC 4.29 %
Imperial Brands PLC 4.03 %
Sanofi SA 3.59 %
Aviva PLC 3.57 %
Region %
United Kingdom 87.27 %
Eurozone 5.60 %
Sector %
Financial Services 25.70 %
Consumer Defensive 16.74 %
Communication Services 13.23 %
Basic materials 11.95 %
Energy 9.79 %
Healthcare 8.35 %
Schroder Unit Trusts Limited
EC2Y 5AU, London, United Kingdom
Legal Structure
Unit Trust


Nick Kirrage
Joined 05/18/2010

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.

Kevin Murphy
Joined 05/18/2010

Kevin Murphy 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 2000 and is based in London. Kevin was a Fund Manager and Analyst at Schroders from 2000 to 2013, commencing his career in the UK equity fund management team before taking responsibility for the Pan European Construction and Building Materials sectors. He became co-manager of the Schroder Recovery Rund in 2006 and the Schroder Income Fund in 2010. Qualifications: CFA Charterholder; BSc in Economics from Manchester University.

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