Schroder Recovery Z

  • 91.88p Price (Inc)
  • 111.20p Price (Acc)
  • 0.00% 0.00%

    Initial charge
  • 0.75% Annual management charge
  • 0.92% Ongoing charges
  • 3.60% Yield

Fund data last updated 20 November 2019

As the name would suggest, the portfolio invests in recovery or special situations. This leads the manager down a value approach to investing. Targeting unloved stocks that the manager believes have potential highlights the contrarian nature of the portfolio. This style of investing can fall out of favour with the market leading to periods of underperformance.

Fund summary

Sector UK All Companies
Structure UNIT TRUST
Launched August, 2011
Size £1,090m
Yield 3.60%
Charging basis Income
Dividends paid 15 Jul

Charges

Initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.92%

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Investment process

The fund's investment objective is to achieve capital growth for investors through investment in companies that have suffered a setback. The fund manager focuses on shares which trade at a relatively low valuation compared to the company's assets or profit growth outlook. These shares tend to carry a high yield (income distributions as a percentage of the share price). However, to achieve a growing level of income, the fund manager invests in shares where he believes the company will be able to continue to pay out a high level of income through growing profits. A typical portfolio holding will therefore have a track record of producing strong returns on capital employed. The portfolio will be reasonably diversified across the UK market.

Manager research

Average monthly relative returns

  • 14/15 -0.21%
  • 15/16 -0.07%
  • 16/17 0.15%
  • 17/18 0.16%
  • 18/19 -0.69%

Bestinvest MRI

  • 3 years -0.13%
  • 5 years -0.13%
  • Career 0.17%
  • 3 years 41.70%
  • 5 years 40.50%
  • Career 93.80%

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

Kevin Murphy / Nick Kirrage

Murphy graduated with a BA (Hons) in Economics from Manchester University and is a CFA Charterholder. He joined Schroders in 2000, initially working on the UK fund management desk with emphasis on private bank portfolios before becoming a sector analyst in the Pan-European research team from 2003. He is now a specialist global value manager. Kirrage is also a specialist global value manager. He joined Schroders in 2001, spending a year in institutional marketing before joining Schroder research in December 2002 where he was responsible for analysing a number of UK sectors including transport and metals & mining. He has a Degree in Aeronautical Engineering from Bristol University and is a CFA charterholder.

Track record

Kevin Murphy / Nick Kirrage has 13.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.17%. During the worst period of relative performance (from January 2014 - August 2019) there was a decline of 17% relative to the index. The worst absolute loss has been 42%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 94%.

Periods of worst performance

Absolute -42.00% (May 2007 - February 2009)
Relative -17.00% (January 2014 - August 2019)

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.

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Top 10 holdings

Data accurate as at 30 August 2019

5.3949% Bp
5.2958% Pearson
5.2423% Hsbc Hldgs
5.0794% Standard Chartered
4.7565% Anglo American
4.5872% Royal Bank Of Scotland Group Plc
4.4838% Glaxosmithkline
4.4762% South32 Ltd
3.8914% Barclays Plc
3.8887% Morrison(Wm.)Supermarkets
Source: Trustnet

Sector breakdown

Financials 31.00%
Consumer Discretionary 14.00%
Basic Materials 10.00%
Consumer Staples 9.00%
Energy 9.00%
Health Care 8.00%
Industrials 7.00%
Utilities 5.00%
Technology 4.00%
Money Market 2.00%

Portfolio

Due to the income targets of the portfolio, there is a bias to value stocks.

Constraints

No more than 15% is held in any one industry and no more than 4% in any one stock. 1.5-2% is the normal holding with circa 60-100 stocks held.

Key Investor Information - Income

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Key Investor Information - Accumulation

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