16 maj: Grækenland: Nyvalg finder sted 17. juni (NY)
16 maj: Mærsk: Punktligheden på vej op i containerbranchen
16-05-2012 13:49:00

TIP SHEET: Schroder Fund Searches World For Value

Relateret indhold

(This article was originally published Tuesday.)

--International multi-cap fund looks for quality, value

--Currently overweight in insurance companies, asset managers

--Fund has been wary of banks since 2007

By Erik Holm

Of DOW JONES NEWSWIRES

The Schroder International Multi-Cap Value fund (SIDNX) will go anywhere in the world for a good value.

The fund, rated four stars out of five by Morningstar, has more than 800 stocks in its portfolio, with investments drawn from all sectors of the economy and all corners of the globe, except the U.S. It holds shares in massive companies with market capitalizations of more than $20 billion and tiny ones worth less than $250 million. And the managers who run the fund are out shopping for more investments from a universe of more than 12,000 public companies.

The fund, which has about $20 million in assets under management, "exploits a universe of enormous breadth," said Schroder senior client portfolio manager Stephen Kwa. "When we put the portfolio together, we are not constraining it or making reference to any benchmark or index."

The fund's two main criteria as it looks for potential investments are value and quality, and potential investments are evaluated using screens that examine both. Those factors are the reason the fund has been underweight on its bank holdings for the past several years, but is currently overweight on both insurance companies and asset managers.

Property-casualty companies, life and health insurers and asset managers constitute 9.6% of the portfolio. Banks, meanwhile, make up 7.4%.

"Ever since 2007, our team has been very wary of banks," Kwa said. "We saw the subprime crisis unfolding and initiated new risk management screens... That's kept us out of the lowest quality banks."

Insurer holdings include Swiss company Zurich Insurance Group AG (ZURN.VX); Canada's Manulife Financial Corp. (MFC.T); Australia's AMP Ltd. (AMP.AU); and the U.K.'s Prudential PLC (PRU.LN) and Standard Life PLC (SL.LN).

All of them fall into the cheapest 20% in terms of Schroder's analysis of their valuation, a metric that includes an analysis of book values, dividend yields and cash-flows. And each is within the top 20% in terms of quality, Kwa said.

By and large, insurers "haven't experienced the same issues as banks on their balance sheet," he said. "They tend to score more highly on quality than banks."

While underweight on banks, the ones that look attractive in Schroder's analysis include HSBC Holdings PLC (HSBA.LN) and Royal Bank of Canada (RY.T).

Another important aspect of the fund: holdings aren't weighted according to their market capitalization, meaning the largest companies are under-represented relative to global indexes that might be used as a benchmark for the fund's performance.

Companies classified as mega-cap and large-cap stocks made up less than half the fund at year-end, compared with 91% of the MSCI EAFE Index, according to data supplied by Schroder. The MSCI EAFE Index tracks equity-market performance outside of North America.

So far, the five-year-old fund has generally outperformed that index. Year-to-date, the fund is up 3.3%, better than the 2.1% gain in the index, according to investment site Morningstar.com. The fund's three-year return is 12.9%, 5 percentage points above the index. Over five years, the fund is down 2.8%, but that is better than the 6% decline in the index.

"History has shown us the market leaders have underperformed the smaller companies," Kwa said.

(Erik Holm covers the insurance industry for Dow Jones Newswires. He can be reached at 212-416-2892 or by email at erik.holm@dowjones.com.)

(TALK BACK: We invite readers to send us comments on this or other financial news topics. Please email us at TalkbackAmericas@dowjones.com. Readers should include their full names, work or home addresses and telephone numbers for verification purposes. We reserve the right to edit and publish your comments along with your name; we reserve the right not to publish reader comments.)

(END) Dow Jones Newswires

May 16, 2012 07:49 ET (11:49 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Opret kommentar

Relateret debat

  • 1 uge
  • 1 måned
  • 1 År
Ingen indlæg

Fondsbørsmeddelelser

MT Højgaard leverer fremgang trods omkostninger til offshoresag

17-08-2017 15:39:35
Entreprenørselskabet MT Højgaard, der ejes 46 pct. af børsnoterede Monberg & Thorsen og 54 pct. af Højgaard Holding, leverede fremgang i andet kvartal trods særlige omkostninger til en tabt sag om vindmøllefundamenter, som koncernen tidligere har oplyst om.Omsætningen steg til 1931 mio. kr. fra 1605 mio. kr. i samme kvartal året før, mens EBIT før særlige poster landede på 63 mio. mod minus 5 mio...

Maersk Oil/CEO: Der er fortsat rum for besparelser

17-08-2017 13:30:15
Alle de lavthængende frugter er høstet gennem flere sparerunder de seneste år, men der er fortsat rum for besparelser hos Maersk Oil.Sådan lyder det fra olieselskabets topchef, Gretchen Watkins.- Jeg forventer, at vi kan hente flere besparelser, men det er klart, at på nuværende tidspunkt er alle de lette opnået. Derfor vil de områder, vi kigger på nu, give mindre og tage længere tid at realisere,..

Aktier/middag: Vestas som bundprop i nyhedsmættet eliteindeks

17-08-2017 11:41:37
Vestas tager prisen som den mest faldende aktie i C20 Cap torsdag middag, efter at vindmølleselskabet er kommet med regnskab for andet kvartal 2017.Lige efter følger ejendomsservicegiganten ISS, mens GN Store Nord indtager toppen, da regnskaberne fra de to selskaber peger i hver deres retning.Samlet falder eliteindekset torsdag middag med 0,6 pct. til 1159,23, hvilket er billedet i Europa generelt..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge
1
Vestas: Stærk ordreindgang er lyspunkt i lidt skuffende regnskab
2
Vestas/ABM: Priserne på nye ordrer er største problem i regnskabet
3
Aktier/middag: Vestas som bundprop i nyhedsmættet eliteindeks
4
Coloplast: Her er analytikernes justeringer efter regnskabet
5
Aktier/tendens: Dugfriske regnskaber vil sætte stemningen

Relaterede aktiekurser

Hsbc Holdings PLC ORD $0.. 738,00 -1,3% Fald i aktiekurs
Prudential PLC ORD 5P 1.813,50 -0,8% Fald i aktiekurs
Prudential Public Limite.. 46,37 0,0% Aktiekurs uændret
Zurich Insurance N 293,50 0,0% Aktiekurs uændret
Royal Bank of Canada 72,96 -0,9% Fald i aktiekurs
Hsbc Holdings 8,13 -0,9% Fald i aktiekurs
Manulife Financial Corpo.. 19,94 0,0% Aktiekurs uændret

Køb- og salgsanbefalinger

  • Trend
  • Pengemaskinen

Copyright Euroinvestor A/S 2017  Disclaimer Privatlivspolitik
Aktieinformation leveres af Interactive Data.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
 
18. august 2017 03:11:18
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20170808.1 - EUROWEB4 - 2017-08-18 03:11:18 - 2017-08-18 03:11:18 - 1 - Website: OKAY