Schroder Global Recovery

This global value fund is managed by Schroders’ well known value investment team. Nick Kirrage and Kevin Murphy have been joined by Andrew Lyddon to run this concentrated, unconstrained value portfolio. They take a long-term view, looking for companies with turnaround potential – a strategy that has benefited investors in the Schroder Recovery fund over the years.

Our opinion

This fund aims to build on the success of Nick and Kevin's Schroder Recovery fund. The addition of Andrew to the team provides a valuable resource, considering the size of the global opportunity set. We believe this fund could be well-positioned to capture a resurgence in this value investing, which historically performs well over the long term.

Fund manager

Nick and Kevin have worked together at Schroders for many years and head up the team that runs the firm’s global income and recovery mandates. They are joined by Andrew, a former pan-European equity analyst, on the Schroder Global Recovery fund. They are also supported by Schroders’ reputable value team. Between the three, they have 42 years’ investment experience.

Recovery investing requires patience, it doesn’t work every day.

Kevin MurphyFund manager

Investment process

The team has spent years fine-tuning their process. It starts with a quantitative screen to highlight the best value ideas. This covers companies with low profits relative to the economic cycle or low share prices in relation to their assets. Their financial statements are then put under the microscope. The team looks at how the company makes money, what drives profits and, ultimately, whether it is a good business. The financial strength of the firm is then assessed. This involves looking at where it is spending money and where the pressure points may be. This provides the team with some insight into what the business is ultimately worth. The managers then wait patiently for the share price to rise to this level. The portfolio typically holds approximately 50 names from different parts of the globe, depending on where they are are seeing the best investment opportunities.

Risk

Schroder Global Recovery fund can underperform when value is out of favour. The nature of recovery investing is that some companies will disappoint and can ultimately go bust, so the skill of the managers comes down to choosing the right stocks. Sometimes it can take time for change to take place and the share price of a company may fall before it rises.

See more

Read more about this fund

The information, data, analyses, and opinions contained herein (1) include the proprietary information of FundCalibre, (2) may not be copied or redistributed without prior permission, (3) do not constitute investment advice offered by FundCalibre, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a fund, and (5) are not warranted to be correct, complete, or accurate. FundCalibre shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. The Elite Fund rating is subjective in nature and reflects FundCalibre’s current expectations of future events/behaviour as they relate to a particular fund. Because such events/behaviour may turn out to be different than expected, FundCalibre does not guarantee that a fund will perform in line with its FundCalibre benchmark. Likewise, the Elite Fund rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund nor of its underlying securities and should not be used as the sole basis for making any investment decision. FundCalibre disclaims any responsibility for trading decisions, damages or other losses resulting from any use of the Elite Fund rating. All performance data, as well as fund size, OCF, AMC, annual income (historic), share price discount or premium, is sourced directly from FE Analytics, and will change periodically.