The mark of a good value investor is a contrarian mindset and a long-term investment horizon.
Value investing is the art of buying stocks which trade at a significant discount to their intrinsic value. Value investors achieve this by looking for companies on cheap valuation metrics, typically low multiples of their profits or assets, for reasons which are not justified over the longer term. This approach requires a contrarian mindset and a long term investment horizon. Over the last 100 years, a value investment strategy has a consistent history of outperforming index returns across multiple equity markets.
We are a team investment professionals who work together on the Equities desk in the Value Investment team at Schroders. Over the past decade we have implemented a value investment strategy, a contrarian and proven apprach to investing. The value investment team is responsible for over £12.4bn assets (as at 1 January 2021, managed in a disciplined value style.
- Kevin Murphy, Fund Manager, Equity Value
- Nick Kirrage, Fund Manager, Equity Value
- Simon Adler, Fund Manager, Equity Value
- Andrew Williams, Investment Specialist, Equity Value
- Andrew Evans, Fund Manager, Equity Value
- Juan Torres Rodriguez, Fund Manager, Equity Value
- Roberta Barr, Head of Value ESG, Equity Value
- Vera German, Fund Manager, Equity Value
- Ben Arnold, Associate Investment Director, Equity Value
- Liam Nunn, Fund Manager, Equity Value
- Andrew Lyddon, Fund Manager, Equity Value
Equity value funds
We run funds across three major geographies targeting income and/or capital growth through a distinct value approach.
- Schroder Income Fund
- Schroder Recovery Fund
- Schroder ISF Global Recovery
- Schroder Global Recovery Fund
- Schroder Global Equity Income Fund
- Schroder ISF Global Equity Yield
- Schroder ISF European Equity Yield
- Schroder ISF European Value Fund
- Schroder European Recovery Fund
- Schroder ISF Emerging Markets Value
- Schroder Global Sustainable Value Equity Fund
Value investing is a time tested strategy - it should outperform the market over time by buying stocks for less than their worth. In this series of short videos we explain the most important factors we look for in delivering a consistent and successful value investment strategy.
The 4 Edges
Investing is a highly competitive marketplace and, if you want to outperform there, you will need an ‘edge’ over the competition. Fortunately, value investing offers the prospect of edges across four different areas.
- The Four Edges: Informational
- The Four Edges: Analytical
- The Four Edges: Organisational
- The Four Edges: Behavioural
The 7 Red Questions
We operate a checklist which we call the seven ‘Red’ questions. These are the questions we ask of every single company we consider as a potential investment, addressing the different aspects of any distressed business that need to checked and double-checked. In these videos, members from the Value team go into each question more in depth:
- Is the screen missing any liabilities (or assets)?
- Are the profits misleading?
- Is the business likely to suffer from structural change?
- Do the profits turn into cash?
- How would the business stand up to a financial stress-test?
- How can we assess the quality of the business?
- What are the ESG considerations?
What are the risks?
Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Some funds invest solely in the companies of, or in property located in, one country or region. This can carry more risk than investments spread over a number of countries or regions. Investments in smaller companies can be less liquid than investments in larger companies and price swings may therefore be greater than in larger company funds. Investors in the emerging markets and the Far East should be aware that this involves a high degree of risk and should be seen as long term in nature. Exchange rates may cause the value of investments denominated in currencies other than sterling, and the income from them, to rise or fall.