Schroder Core UK Equity Z

  • 178.10p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 337.90p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.79%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 3.50%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 14 January 2021, fund data last updated 30 August 2011

The fund aims to outperform its benchmark, the FTSE All-Share, by +1.5% (net of fees) a year over the medium term by investment primarily in companies in the UK. Manager David Docherty follows a “business cycle” approach – making a judgement as to where we are in the economic cycle and then buying stocks he believes will benefit from the anticipated conditions. The fund invests almost entirely in large and mid-sized companies and its benchmark constraints keep the portfolio reasonably close to the index.

Fund summary

Sector UK All Companies
Structure OEIC
Launched
Size £43m
Yield 3.50%
Charging basis
Dividends paid 28 Feb, 31 Aug

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.79%

Allocation

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Investment process

The fund targets capital growth and income by investing mainly in FTSE 350 companies. The manager pursues a pragmatic approach known as business cycle investing, setting sector and style exposures based on macro-economic views which are determined at a pan European Equity Strategy meeting. Stocks are classified into seven types: Commodity Cyclicals, Consumer Cyclicals, Industrial Cyclicals, Financials/Interest Rate Sensitives, Growth Defensives and Value Defensives. The portfolio is tilted towards stock types the manager believes will benefit in the next stage of the cycle – for instance, defensive stocks during a recession. The process also includes bottom-up analysis, with stocks being screened on both quantitative and qualitative bases before being researched in more depth. The importance attached to top-down and bottom-up analysis varies according to the stage in the cycle – "inflection points" in the business cycle are catalysts for portfolio changes. At turning points in the cycle, the manager places a greater emphasis on business cycle factors (beta) to dominate stock returns, whilst during periods of expansion/contraction, it is the differences between stocks and sectors that are usually expected to dominate performance (alpha). As a result, the manager would commit more risk capital to either beta or alpha factors during the respective periods in the market cycle.

The manager, David Docherty, runs the fund with the approach of keeping returns reasonably close to the index whilst still retaining the possibility of outperformance, particularly when the team judge the market cycle correctly as they did during the 2008 downturn. The process has a considerable track record, though results since Docherty took day control of the fund in 2009 have been mixed.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Track record

Periods of worst performance

Absolute 0.00% ()
Relative 0.00% ()

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Sector breakdown

Consumer Services 23.00%
Financials 18.00%
Industrials 16.00%
Health Care 14.00%
Basic Materials 13.00%
Consumer Goods 10.00%
Oil & Gas 3.00%
Utilities 2.00%
Money Market 1.00%

Portfolio

Minimum 60 stocks.

Key Investor Information - Income

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Key Investor Information - Accumulation

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