The fund, which is co-managed by Murphy (pictured), Nick Kirrage and Andrew Lyddon, has underperformed the IA Global sector since it’s launch in October 2015.
Over three months, six months and one-year, it has produced returns of -1.7%, -0.1% and 3.8%, versus 3.2%, 4.0% and 8.6%, according to FE.
It invests in companies that have seen a setback in profits or share price but have recovery potential.
Murphy and Kirrage were stripped of their FE Alpha Manager status in February and their Income fund was one of the biggest fallers in in Sanlam UK’s biannual Income Study released in January.
Despite this, Gill Hutchison, research director at The Adviser Centre, described Murphy and Kirrage as two of the more experienced value investors in the industry.
Hutchison said the pair offered a differentiated global equity fund through a “distinctive and patient” approach.
“Given the contrarian style, the process is implemented with objectivity and a willingness to consider all stocks that appear cheap, regardless of past experiences and industry preferences.”
“Murphy and Kirrage are passionate about value investing and over the years, they have shown fortitude in maintaining their disciplines, even in times of adversity,” she added.
“We believe that a positive watch endorsement is appropriate at the present time given the relatively short period of time that their stock research has been extended fully to the global equity universe.”
The fund is approximately four-months shy of its three-year track record. The Adviser Centre has previously stated it does not have a prescriptive approach when it comes to fund track records.
Value’s dismal performance
The Adviser Centre recommendation comes a week after Murphy described value’s recent performance as the most severe since the great depression.
At Schroders Investment Conference, he said now is one of the rare periods when value hasn’t outperforms growth on a rolling 10-year basis, in line with historic trends.
Murphy said the current period has been worse than the tech boom.
Murphy said: “Since 2009, 2010 and 2011, value has been going through a bigger challenge even more than the late 90s, value has now underperformed for the longest period on record.”
He has remained confident in the approach despite people stating value is dead – as they did in the lead up to the bursting of the dot com bubble.
