Schroder UK Equity A

Targets capital growth and income from primarily large and mid cap UK equities

  • 701.00p
    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.

  • 2146.00p
    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!

  • 1.50%
    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).

  • 1.66%
    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.

  • 2.40%
    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 27 November 2020, fund data last updated 19 June 2014

The Fund's investment objective is to achieve capital growth and income through investment in UK equities. Manager Alex Breese invests primarily in large and medium sized companies. Investment will be in a balanced portfolio of good quality companies, structured to produce a higher immediate income than is obtainable from funds concentrating entirely on capital growth. Breese runs the fund in a pragmatic fashion with no preference given to any particular style.

Fund summary

Sector UK All Companies
Structure UNIT TRUST
Launched April, 1987
Size £279m
Yield 2.40%
Charging basis Income
Dividends paid 20 Feb

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.66%

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Investment process

The fund’s investment universe is the FTSE All-Share index, a broad index of UK equities. There is no bias to any particular industry and the manager selects investments from the largest 400 stocks in the UK market. Breese is a pragmatic investor and looks for stocks with asymmetric risk characteristics: companies that have considerable potential upside but with a degree of downside protection, which is most commonly established by investing in stocks with strong balance sheets and supportive valuations. Common examples within the portfolio would include companies with new management teams which the manager believes will have a significant opportunity for a turnaround via improved cost management and a focus on cashflow; unrecognised growth associated with self-help initiatives; cyclical recovery stocks; companies with re-rating potential. Position sizes of individual stocks are determined by upside potential relative to downside risk. Liquidity consideration will also have an impact on the size of each individual holding.

The fund's new manager, Alex Breese, has been running the fund since July 2013. Breese changed the portfolio composition to reflect higher conviction views on individual securities. He has built a promising track record prior to joining Schroders and we will keep a close eye on the fund. In the meantime we suggest clients consider our highly rated funds in the UK sector.

Manager research

Average monthly relative returns

  • 15/16 0.08%
  • 16/17 -0.26%
  • 17/18 -0.03%
  • 18/19 -0.36%
  • 19/20 -1.32%

Bestinvest MRI

  • 3 years -0.57%
  • 5 years -0.38%
  • Career -0.01%
  • 3 years 2.00%
  • 5 years 3.60%
  • Career 85.80%

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

Alex Breese

Breese joined Schroders in July 2013. He previously worked for Neptune from May 2005 as an investment analyst, becoming a fund manager in 2006. In 2012 he was made head of UK equities. Before joining Neptune, he gained nearly three years’ experience as an engineering consultant, having graduated with first class honours in Mechanical Engineering in 2002. He has successfully completed the IMC and is a CFA charterholder.

Track record

Alex Breese has 13.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.01%. During the worst period of relative performance (from January 2016 - October 2020) there was a decline of 24% relative to the index. The worst absolute loss has been 36%.

Periods of worst performance

Absolute -36.00% (May 2007 - February 2009)
Relative -24.00% (January 2016 - October 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

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Top 10 holdings

Data accurate as at 31 July 2020

6.52% Glaxosmithkline
6.28% Tesco
5.32% Anglo American
4.19% Bp
4.06% Standard Chartered
3.75% Aviva
3.63% Imperial Brands Plc
3.51% Wpp Plc
3.5% Sanofi
3.47% Smiths Group
Source: Trustnet

Sector breakdown

Financials 22.00%
Consumer Services 20.00%
Industrials 17.00%
Basic Materials 11.00%
Health Care 11.00%
Consumer Goods 6.00%
Oil & Gas 6.00%
Telecommunications 5.00%
Utilities 1.00%
Others 1.00%

Portfolio

40-60 stocks

Constraints

Typical tracking error range - 3%-7%. Individual stock +/-4% relative to the index. Max 5% cash. Turnover is typically 33% per annum.

Key Investor Information - Income

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Key Investor Information - Accumulation

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