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
Name
Schroder Income Fund Z Acc
Manager
Schroder Unit Trusts Limited
Type
Unit Trust
ISIN
GB00B3PM1190
Sector
UK Equity Income
Launched
11/05/2011
OCF
0.91 %
Risk Rating
4
3 Year Sharpe
0.97
3 Year Alpha
1.98
Yield
3.4 %
Benchmark
FTSE AllSh TR GBP
The OMW Schroder Income fund invests solely in the Schroder Income fund, a UK authorised Unit Trust managed by Schroder Unit Trusts Limited. The underlying fund aims to provide income and capital growth by investing in equity and equity related securities of UK companies. The underlying fund invests at least 80% of its assets in a concentrated range of equity and equity related securities of UK companies. The underlying fund invests into a relatively small number of assets, or into individual countries or a specific market sector. Such concentrated portfolios give rise to more risk than where investments are spread across a larger number of assets, countries or market sectors. The underlying fund may be denominated in or hold assets in a currency other than Sterling. The performance of the fund may therefore rise and fall as a result of exchange rate fluctuations.
Holding %
HSBC Holdings PLC 5.57 %
Pearson PLC 5.31 %
GlaxoSmithKline PLC 5.24 %
BP PLC 5.14 %
Anglo American PLC 4.95 %
Centrica PLC 4.58 %
Aviva PLC 4.50 %
South32 Ltd 4.19 %
Morrison (Wm) Supermarkets PLC 4.03 %
Royal Bank of Scotland Group (The) PLC 3.96 %
Region %
United Kingdom 84.60 %
United States 9.05 %
Sector %
Financial Services 31.14 %
Consumer Cyclical 13.89 %
Basic materials 11.95 %
Energy 10.20 %
Healthcare 10.18 %
Consumer Defensive 7.60 %
Technology 6.97 %
Utilities 6.53 %
Name
Schroder Unit Trusts Limited
Address
EC2V 7QA, London, United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

Nick Kirrage
Joined 05/18/2010

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.

Nick Kirrage
Joined 05/18/2010

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.

Data provided by Morningstar.

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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.