Schroder Income duo look abroad to avoid 'extreme' concentration

Schroders' Kevin Murphy and Nick Kirrage have moved their £1.1bn Income fund close to its maximum allowed overseas weighting to escape the "extreme" concentration seen in the UK market.

The portfolio can go up to 20% in non-UK listed equities, and at present is running with 15%, as well as 3% in fixed income opportunities. “This is at the higher end relative to history as we think there are attractive opportunities outside the UK,” Murphy (pictured) said. “Income concentration is extreme in the UK – the top 20 companies represent 70% of the All Share’s dividend paying stocks. As a result, you need to look for companies returning to the dividend register, or else growing their dividend from a very low base after cuts during the credit crisis.” The fund holds a numb...