Schroder UK Opportunities C

Targets long term capital growth and income from FTSE 100 and FTSE 250 equities

  • 323.20p
    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.

  • 490.30p
    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!

  • 1.00%
    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).

  • 1.16%
    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 13 December 2019

The fund targets long-term capital growth whilst delivering an income, by investing in any economic sector of the UK market. Investing mainly in FTSE 100 and FTSE 250 stocks, the manager follows a “business cycle” approach, judging the state of the economy and then focusing on the types of companies he believes will benefit from it. For instance, he is likely to invest in more defensive companies during recessions but favour more cyclical stocks when the economy is booming.

Fund summary

Sector UK All Companies
Structure OEIC
Launched November, 1989
Size £121m
Yield 2.40%
Charging basis Income
Dividends paid 28 Feb, 31 Aug

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.16%

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Investment process

The fund’s investment universe is predominantly the 350 largest companies on the UK stockmarket (the FTSE 350), but some small cap stocks may also be included. The manager pursues a business cycle approach to investing, setting sector and style exposures based on macro-economic views determined at a pan European Equity Strategy meeting. The team believes that company profits vary depending on the stage of the business cycle, with different stocks having different sensitivities to the economic environment. Stocks are classified into seven types; Commodity Cyclicals, Consumer Cyclicals, Industrial Cyclicals, Financials/Interest Rate Sensitives, Growth Defensives and Value Defensive. 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 quantative 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.

Julie Dean turned this fund into one of the top performers in the UK All Companies sector in recent years, but left the company in 2014. Successor Matt Hudson is highly capable in his own right but lacks a track record in the UK All Companies sector.

Manager research

Average monthly relative returns

  • 14/15 0.00%
  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career -0.27%
  • 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.

Matt Hudson

Hudson joined Schroders in 2013 following its acquisition of Cazenove, where he had worked since 2001. He is head of the Business Cycle equity team and has responsibility for equity income portfolios. He joined Cazenove from AIB Govett Investment Management where he was a UK equity fund manager. Prior to this he was a chartered accountant at PriceWaterhouseCoopers in the financial services division. Hudson graduated from Cambridge University with a degree in History.

Track record

The track record of Matt Hudson in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.

Periods of worst performance

Absolute -13.00% (July 2002 - January 2003)
Relative -2.00% (July 2002 - November 2002)

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 30 August 2019

7.88% Royal Dutch Shell
7.1897% Bp
6.6683% Glaxosmithkline
3.7028% Standard Chartered
3.3967% Qinetiq Group
3.3736% Bhp Group Ltd
3.3424% Rio Tinto
3.3017% Smith & Nephew
3.1253% Imperial Brands Plc
2.9767% B & M European Value Retail Sa
Source: Trustnet

Sector breakdown

Financials 21.00%
Energy 15.00%
Consumer Staples 13.00%
Industrials 13.00%
Health Care 12.00%
Basic Materials 10.00%
Consumer Discretionary 7.00%
Money Market 5.00%
Technology 2.00%
Telecommunications 1.00%

Portfolio

35-65 stocks.

Constraints

Max 5% in small caps.

Key Investor Information - Income

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Key Investor Information - Accumulation

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