The fund will focus on global equities with classic recovery characteristics, stocks that are deemed by the managers to have suffered a setback setback in terms of profits or share prices, but where the management and the prospects are believed to be good. It will mirror the investment philosophy of both the Schroder ISF Global Recovery and the Schroder Recovery Fund which Kirrage and Murphy have managed since 2006 and will have an ongoing charges figure of 1%.
Andrew Lyddon, co-manager of the Schroder Global Recovery Fund said: “Value has underperformed growth for the longest period on record and is currently trading at the widest discount to growth since the Dotcom bubble in 2000. This is unusual, and history suggests that value should recover and outperform over time. Given the scale of value’s recent weakness the potential recovery could be significant.”
The Schroder Recovery Fund has returned 44% over the last three years against a sector average of 31%.
Juliet Schooling Latter, research director at Chelsea Financial Services, said: “The managers have a proven track record on the offshore version of the fund, which was launched in 2013. It has been quite volatile (one of the best performers in the sector in 2014 but near the bottom this year), but that is what you would expect with a fund of this style. We like the UK version of the fund which has an Elite Rating from FundCalibre. If they can replicate their success on the new global fund, it should be a good new alternative for investors wanting a more diversified offering.”