Schroders brings recovery fund onshore

Schroders brings recovery fund onshore

Schroders is launching an onshore version of its ISF Global Recovery fund for managers Nick Kirrage, Kevin Murphy and Andrew Lyddon.

The new fund will mirror the investment philosphy for its offshore counterpart, managed by the trio, and the Schroder Recovery Fund managed by Mr Kirrage and Mr Murphy.

The fund will focus on investing in global equities with classic recovery characteristics in the new vehicle.

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Mr Kirrage and Mr Murphy will also continue to manage the £1.4bn Schroder Income fund. Mr Lyddon joined Schroders in 2005 as an equity analyst and is now a fund manager in the specialist value team.

Mr Lyddon said: “We believe there is a strong case for the recovery of value from currently depressed levels. 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.”

Mr Murphy and Mr Kirrage have each delivered a 36.4 per cent return over the three years to the end of September 2015 compared to 28.2 per cent from their peer group composite, according to FE Analytics.

The Schroder Recovery fund has returned 57.2 per cent over five years, compared to 49.9 per cent from peer group the Investment Association UK All Companies sector, according to FE Analytics.