Schroder Income Fund Z Acc
UK Equity Income
New for 2018. Disciplined value-driven approach
If you're looking to gain exposure to large, higher yielding UK companies, this fund could be for you.
It's all about the price paid at entry for managers Kevin Murphy and Nick Kirrage, whose 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.
'As a result, the fund will have periods when it is out of favour, followed by material periods of sharp returns, underpinned by a solid income stream,' says Ben Willis, head of research at Whitechurch Securities. 'It's not for the faint-hearted, but it is all about long-term total returns, which the fund has ably delivered.' The wealth manager has held it for clients for the past decade.Morningstar analysts also rate the fund, which yields 3.1 per cent and pays income half-yearly, on the strength of its managers' disciplined adherence to their value-driven approach.The managers 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 tends to deviate significantly from its FTSE All-Share benchmark in terms of the sectors and sizes of companies it is exposed to, which can result in a performance profile that looks erratic on a calendar year basis. Investors who can tolerate this extra volatility have been rewarded over the long term.
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|BP PLC||5.77 %|
|Pearson PLC||5.75 %|
|GlaxoSmithKline PLC||5.24 %|
|HSBC Holdings PLC||4.98 %|
|South32 Ltd||4.59 %|
|Anglo American PLC||4.54 %|
|Morrison (Wm) Supermarkets PLC||4.49 %|
|Centrica PLC||4.47 %|
|Aviva PLC||3.99 %|
|Standard Chartered PLC||3.51 %|
|United Kingdom||82.24 %|
|United States||8.53 %|
|Financial Services||31.37 %|
|Consumer Cyclical||12.03 %|
|Basic materials||11.98 %|
|Consumer Defensive||8.33 %|
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.
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.
Data provided by Morningstar.
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