The new fund launches today and will use the same ‘deep value’ process employed on the UK fund, aiming to buy companies on depressed valuations that have good long term recovery prospects. Andrew Lyddon will also work on the new fund.
In common with the UK fund, the fund will have a relatively concentrated portfolio of between 30 and 70 stocks. The pair have held some international companies in the UK Recovery Fund up to the 20% maximum, including technology names such as Dell and Hewlett-Packard, pharmaceutical groups Eli Lily and Pfizer and insurance group Old Mutual. They currently hold around 12% of the fund in the US.
It has a minimum investment of $1,000 or local currency equivalent and an annual management charge of 1.5%.
Schroders’ managing director for UK intermediary Robin Stoakley said: “We have decided to launch Schroder ISF Global Recovery following strong demand from clients for high alpha global equity products. It will look to match the strong, long-term investment performance of the Schroder Recovery Fund by applying the same investment style to global markets. There are very few funds that invest this way.”
The Schroder UK Recovery Fund is top quartile over one and three years. The fund has delivered 53.5% over three years, compared to the IMA UK All Companies sector average of 33.7 and 40.3% over one year, compared to 19.9% from the wider sector. The fund has done well over the past year from positions in out-of-favour banks, high street retailers and housebuilders.
Kirrage and Murphy have been with the group since 2006 and also run the £1.35bn Schroder Income and £128.2m Schroder Specialist Value UK Equity funds.