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Schroder Income Class L - Income (GBP)

Sell:67.68p Buy:67.68p Change: 0.25p (0.37%)
Prices as at 20 May 2024
Sell:67.68p
Buy:67.68p
Change: 0.25p (0.37%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 20 May 2024
Sell:67.68p
Buy:67.68p
Change: 0.25p (0.37%)
Prices as at 20 May 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

We think Murphy and Evans have the experience and support to deliver good long-term returns to patient investors, although there are no guarantees.

The fund could diversify an income focused portfolio or offer value exposure to a more general portfolio.

Our view on the sector

The UK stock market is home to lots of world-class companies. From international giants to a diverse array of smaller businesses. This provides a rich hunting ground for fund managers in this sector. They all try to grow investors' money over the long term, but each goes about it in a different way. Some focus on larger companies in the FTSE 100 index, others invest in medium-sized or smaller companies, and some have the flexibility to invest in any company, regardless of size. Some aim to match or deliver a return similar to the broader UK stock market. Others have the freedom to try and make as much money as possible for investors and take more risks. That could mean investing in only a small number of companies, for instance. A fund that invests in UK shares is normally the first port of call for UK-based investors. But with such a variety on offer, investors should make sure a fund is right for their circumstances before investing.

Performance Analysis

The fund has a distinct value style bias and the contrarian approach employed means it can look quite different to the index at times. The contrarian nature of this approach means that investors need to adopt a long-term view as there will be times when the fund's style will be out of favour and the fund could underperform. We think Murphy and Evans have the experience and support to deliver good long-term returns to patient investors, although there are no guarantees.

Investment Philosophy

The fund aims to provide income and capital growth over the long term by investing in a diversified portfolio of UK companies. The fund has a distinct value style bias and the contrarian approach employed means it can look quite different to the index at times.

Process and Portfolio Construction

The process begins with valuation screens designed to identify companies that have experienced large share-price falls or falling profits. The manager's aim to remove the impact of the economic cycle by looking at measures like share price relative to a companys average earnings over 10 years. This helps them condense the investable universe to focus on the cheapest stocks. This focus on out-of-favour companies is called value investing.

The manager's then perform detailed research on companies that have screened well with the aim of weeding out those that are value traps - companies that are cheap for good reason. This research process involves building financial models, identifying key drivers of the business and assessing its balance sheet strength. The managers will also look to normalise key measures of a company's success like revenues, margins and returns over time rather than just looking at one point in the cycle.

A company's income generation profile is considered throughout the process. The managers don't just consider the current dividend a company pays, but also the potential for that dividend to grow and a company's ability to grow its capital value in order to support that income growth over time.

Stocks with attractive risk / reward ratios are purchased with positions sized according to the managers' assessment of the risks involved, with the larger positions in those with lower risks.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

20/05/19 to 20/05/20 20/05/20 to 20/05/21 20/05/21 to 20/05/22 20/05/22 to 20/05/23 20/05/23 to 20/05/24
Annual return -27.31% 40.83% 16.03% 2.29% 17.01%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

manager photo
Manager Name: Nick Kirrage
Manager start date: 18 May 2010
Manager located in: London

Specialist Value UK equity fund manager with 9 years investment experience. Previously a sector analyst responsible for a number of UK sectors including Transport and Metals & Mining. Investment career commenced in 2001 at Schroders. Chartered Financial Analyst. Degree in Aeronautical Engineering, Bristol University

manager photo
Manager Name: Kevin Murphy
Manager start date: 18 May 2010
Manager located in: London

Specialist Value UK equity fund manager with 10 years investment experience. Previously a sector analyst for Pan European Construction and Building Materials. Investment career commenced in 2000 in Schroders' UK equity fund management team. Degree in Economics, Manchester University and CFA Charterholder.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account