Contrarian stance affects Schroder Income fund, says Hargreaves Lansdown
Schroder Income fund managers Nick Kirrage and Kevin Murphy’s investment approach has led to underperformance, according to Hargreaves Lansdown.
Senior analyst Meera Patel says although she rates the managers, performance has been affected by their bullish view of markets.
She says: “Nick Kirrage and Kevin Murphy generally believe the best investments are found by going against the crowd.
“On occasion this means they are early investors in companies they feel have strong growth potential, but it can take a while for this to be recognised by the wider market.
Patel adds: “This year they have invested in UK banks and consumer stocks, but their share prices have remained in the doldrums thus far.”
“Despite this, they believe there is a phenomenal opportunity in such areas of the market which have been overlooked by investors.”
Patel says although performance in defensive areas have benefitted fund they have
The senior analyst says any investment in the fund should be viewed over the long term.
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