Co-manager Nick Kirrage said Schroder Income Fund (Schroder Income fund) managers do not want to follow a number of investment with the industry direction and business focus away from commodities and emerging markets companies.
He told Reuters, "commodity bull market lasted 10 years, if these (for commodities) plate undervalued, feeling that something is wrong ... when we focus on those sections and analyzed, we find not too many companies cheap valuations. "
Instead, the funds tend not sought after industries that may be short-term underperformance, but provides better long-term potential benefits, and rely on strong balance sheet to minimize financial risks to investors.
Kirrage said these industries, including the UK retail, pharmaceutical and telecommunications industries, but did not mention specific stocks.
"The market has experienced the stage of the theme so popular these days. But people forget something. First of all ... your expenses (is) the most important," Kirrage said.
"In our view, did not pay exorbitant prices to buy stocks is to protect your money."
Their views will cause some short term pain.
The fund has been in outstanding performance in the financial crisis, but since Kirrage and colleagues Kevin Murphy took over, nearly five months since the poor performance.
According to Thomson Reuters research firm Lipper's fund (Lipper) survey at the end of October in the five months, Schroder Income Fund in the 111 fund companies ranked 98.
Although the Fund to grow 8% over the past five months, but still worse than the industry average, that the Fund benchmark FTSE index (FTSE All Share) nearly 11% increase.
But Kirrage said he can accept short-term impact of face, and explained that this is a conservative approach the company can not avoid the consequences.
"Not among the best championship performance every time the reason (is) a big difference with our benchmark ... we can accept this result, because we are protecting our assets, but we will look very different."
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