Schroder Income Fund
Launch Date 31/05/1987 Initial Charge 5.25%
Fund Size £1,420M Discount 5.25%
ISIN Number GB0007649196 The total cost of investment after the discount is applied* 0%
Legal Structure Unit Trust (UNIT) Annual Management Charge 1.50%

*In addition, the fund manager will incur stamp duty, bid/offer spreads in the market and stock broking commission, which may be in part passed onto the investor. Charges rounded up to nearest 0.01%

The Schroder Income fund aims to provide a growing income from investing primarily in UK Equities. It is suitable for investors with a medium attitude to investment risk. Following the recdnt departure of manager Nick Purves. the fund is now managed by Nick Kirrage and Kevin Murphy. The move provides continuity of management style; all four managers have worked together as part of the UK Equity Specialist Value team for many years. The fund’s bottom-up, value-driven investment philosophy remains unaltered and Schroder continues to believe its focus on underpriced, cash-generative businesses has the potential to provide attractive long-term returns for shareholders.

While technically an income fund the managers are prepared to "drop the dividend with the market"; that is to say that should economic conditions mean companies cut their dividends the fund will not ‘chase’ those stocks still paying a dividend. This ensures the fund avoids paying a premium for its dividend and places it on a sound footing when companies’ earnings increase. Since inception in 1991 the fund has consistently maintained an impressive return to risk ratio.
Key Sector % of fund
   FINANCIALS 31.5%
   HEALTH CARE 16.8%
   SERVICES 15%
   TELECOM, MEDIA & TECHNOLOGY 14.3%
   INDUSTRIALS 10.7%
   OIL & GAS 5.1%
   MONEY MARKET 3.2%
   CONSUMER PRODUCTS 3.2%
   DERIVATIVES 0.1%
   OTHERS 0.1%

The asset allocation is shown above, and the relative performance of the fund is given in the table below. Please bear in mind that the value of investments and any income can go down as well as up and you may not get back the amount you invested.
Cumulative Performance
3 mth 6 mth 1 yr 3 yr 5 yr
Fund -8.72% -2.93% 21.18% -1.32% 33.84%
Sector -7.26% -2.08% 19.69% -18.05% 11.98%
Relative to sector -1.46% -0.85% 1.49% 16.73% 21.86%
Rank within sector 80/105 67/105 24/103 4/90 5/78

Data supplied by Financial Express as at July 2010, bid/bid income reinvested. Our views are based upon our understanding of the current legislation. You should not act on any of the information without seeking professional advice. clarity is authorised and regulated by the Financial Services Authority. The Financial Services Authority does not regulate all types of Pensions, Mortgages or Taxation Advice.