Schroder Global Recovery Fund Z Accumulation GBP

Why we like the fund: This is a concentrated fund which invests primarily in companies across developed market regions such as the US, Europe, UK, Japan and Australasia, but will also invest smaller amounts in emerging markets, such as parts of Asia, Latin America and Africa. The managers are ‘value’ investors, quite contrarian and often buying companies with depressed share prices; they have been investing on this basis since before the 2008 Global Financial Crisis. This is a similar offering to Dodge & Cox, but Schroders also invests in smaller companies, which may increase the risk but could also improve returns. How to use the fund: This fund is a good choice for an investor with a long time horizon. It tends to come into its own over periods of ten years or more. Over the short term, like most equity funds, it sometimes loses value, but tends to recover well and investors should stay invested for the long term. The fund’s approach is ‘deeper value’ than the likes of Dodge & Cox, being prepared to own a ‘fair company at a good price’ rather than seeking out ‘a good company at a fair price’. Because the fund employs a ‘value’ approach to investing, it would likely blend well with a ‘growth’ manager like Rathbone Global Opportunities.