Schroders has launched an onshore version of its Global Recovery fund.
The new fund will be managed by Nick Kirrage, Andrew Lyddon and Kevin Murphy, who manage the ISF Global Recovery fund. Kirrage and Lyddon also run the the Schroder Recovery fund.
The investment strategy will mimic the offshore version of the Global Recovery fund, finding out of favour, value companies to invest in over the long term.
“The major strength of recovery investing is the disciplined focus on buying attractively valued, out-of-favour companies at all stages in the investment cycle,” says Lyddon.
“We seek to apply our approach consistently as whilst an unemotional, valuation-driven philosophy will not always be in favour, over longer time periods this investment style has generated exceptional returns.”
“We believe there are very few funds that invest in this way making this a unique offering in the UK retail market,” says Robin Stoakley, managing director of UK intermediary at Schroders.
The Schroder Recovery fund has underperformed recently, returning a 11.39 per cent loss over the past three months compared to 5.5 per cent for the UK All Companies sector.
Over six months it has returned -12.53 per cent to the index’s -4.97 per cent.
However, the managers take a long-term approach, and over three and five years it has outperformed.