Schroder UK Alpha Plus Z

Invests in FTSE 100 and FTSE 250 equities with a value and quality bias.

  • 76.54p
    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.

  • 94.49p
    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).

  • 0.90%
    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.

  • 2.30%
    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 20 January 2021, fund data last updated 17 July 2014

The fund targets capital growth through investment primarily in UK companies. The portfolio consists of companies of all sizes, but with a focus on the FTSE 100 and FTSE 250 indices. Manager Philip Matthews follows a primarily bottom-up process which is valuation conscious with a quality bias - essentially he looks for businesses with upside opportunities but a degree of capital protection.

Fund summary

Sector UK All Companies
Structure UNIT TRUST
Launched May, 2011
Size £514m
Yield 2.30%
Charging basis Income
Dividends paid Jul

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.90%

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Investment process

The fund’s investment universe is the FTSE All-Share index, but the manager primarily invests in FTSE 100 and FTSE 250 stocks. The investment process consists of three stages: Relative Value. The manager carries out a monthly screen based on Quality (looking for a high and consistent return on operating capital, indicating a sustainable competitive advantage) and Valuation (EV to EBIT, indicating cheapness). Absolute Value. This is assessed using Schiller PE, which uses 10 years of earnings to eliminate cyclical fluctuations, as well as by looking at where profits and margins sit compared to their history. Qualitative. The manager believes different businesses should be on different valuations depending on their quality. Assessing this is more subjective, and takes account of factors such as structural growth characteristics, franchise (e.g. brand strength and market position) and stability of earnings. The manager aims to create a margin of error in all investments, looking for companies with growth opportunities but also downside protection e.g. through cash on the balance sheet, recurring revenues or low valuation. He has a bottom-up approach and takes no economic view, though in looking at companies he does take account of economic and regulatory themes, discussed in conjunction with Schroders’ economists.

Philip Matthews took over this fund in 2013 following the departure of star manager Richard Buxton to Old Mutual. Matthews has a track record of consistent outperformance across market cycles on his previous fund at Jupiter, and he will manage this fund in a similar way, albeit he now has significantly more assets under management. Matthews has a more defensive style than his predecessor which typically provides a degree of protection in falling markets - this contrasts with Buxton's more concentrated, more aggressive approach.

Manager research

Average monthly relative returns

  • 16/17 -0.31%
  • 17/18 -0.27%
  • 18/19 -0.12%
  • 19/20 -0.07%
  • 20/21 0.84%

Bestinvest MRI

  • 3 years 0.21%
  • 5 years 0.01%
  • Career 0.18%
  • 3 years 93.60%
  • 5 years 75.20%
  • Career 100.00%

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

Philip Matthews

Matthews studied at Cambridge University where he achieved a BA (Hons) in Modern and Medieval Languages (Italian & German). He has also completed all levels of the CFA exam. He joined Chesterton Plc in 1998, working in the Residential Investment and Development Department. In 1999 he moved to Jupiter as an Assistant Fund Manager, becoming a fund manager on UK portfolios in November 2000. He was deputy on the Jupiter Income fund and manager of Jupiter Growth & Income unit trust. He joined Schroders in October 2013.

Track record

Philip Matthews has 16.7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.18%. During the worst period of relative performance (from January 2014 - February 2020) there was a decline of 13% relative to the index. The worst absolute loss has been 33%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance

Absolute -33.00% (October 2007 - February 2009)
Relative -13.00% (January 2014 - February 2020)

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

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Top 10 holdings

Data accurate as at 31 July 2020

8.84% Rio Tinto
5.4% Glaxosmithkline
5.2% Prudential Plc
5.13% Burberry Group
4.78% Bhp Group Plc
4.64% Next
4.28% Legal & General Group
4.2% Unilever
4.01% Tesco
3.81% Relx Plc
Source: Trustnet

Sector breakdown

Financials 22.00%
Industrials 19.00%
Consumer Goods 18.00%
Consumer Services 16.00%
Basic Materials 14.00%
Health Care 10.00%
Others 1.00%

Portfolio

50-70 stocks. May hold up to 20% in cash.

Constraints

Active stocks weights are between 1-3.5%.

Key Investor Information - Income

Download

Key Investor Information - Accumulation

Download