223. Growth is like “.. sirens pulling you onto the rocks.”

Kevin Murphy, co-manager of Schroder Income, tells us why stock markets are irrational and growth is like, "sirens pulling you onto the rocks," in this week's interview. Kevin also shares why the managers have been trimming their exposure to oil and gas and the banking sectors in favour of consumer retail names. We wrap up with the million pound question: value or growth?
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Schroder Income is a deep value driven fund, investing in companies valued at less than their true worth and waiting for a correction. It has little correlation with other income funds, tending to avoid the big income producers in favour of more niche names, where both capital and income have the potential grow significantly. It is a UK equity fund that seeks to balance dividend yield with dividend growth and balance sheet safety to achieve a growing income. This approach is not without risk and performance can be volatile.

More about this episode:

  • Emotions and extrapolation in financial markets
  • Why profits are indeed important
  • How focussing on the numbers can ensure strong, long-term returns
  • High interest rates and capital growth and risk profiles
  • Why the outlook for value remains bright
  • How selling decisions are reached and finding the next opportunity
  • Cheap buys vs cheaper buys
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.

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