Business Cycle

Capturing opportunities throughout the cycle
We aim to capture the best European opportunities by understanding the stocks most likely to outperform in each stage of the 'business cycle'.

Business cycle approach

Our distinctive business cycle approach helps our fund managers identify the stocks that are most likely to outperform as the economy moves through each stage of the cycle; expansion, slowdown, recession and recovery.
Depending on the phase, the share price performance of different types of companies will react in different ways. By identifying the current stage of the business cycle, we aim to anticipate and capture rich investment opportunities.
Navigate your way through each stage of the business cycle.
Business cycle graph - slowdown
Business cycle graph - recession
Business cycle graph - recovery
Business cycle graph - expansion
  • PHASE 1
  • PHASE 2
  • PHASE 3
  • PHASE 4
  • SLOWDOWN

    OVERWEIGHT

    MARKET

    UNDERWEIGHT

    Growth

    Growth Defensives

    Value Defensives

    Financials

    Consumer cyclicals

    Commodity cyclicals

    Industrial cyclicals

    Growth

    Revenues well in excess of GDP with a high degree of uncertainty or volatility.

    Includes:

    Luxury
    goods
    Medical
    technology
    IT

    Grow revenues in excess of GDP with low volatility and high visibility.

    Includes:

    Pharmaceuticals
    Defence

    Grow revenues at or below GDP with low volatility and high visibility.

    Includes:

    Telecomms & utilities
    Food producers & retailers
    Beverages & tobacco

    Revenues depend on interest rate spreads, financial markets and asset valuations.

    Includes:

    Banks
    Insurers
    Real
    estate

    Revenues reliant on consumer spending.

    Includes:

    House
    builders
    Automotives
    Retail &
    leisure

    Revenues linked either directly or indirectly to a commodity product.

    Such as:

    Oil & gas
    Steel &
    mining
    Bulk
    chemicals

    Manufacturing capital goods or with revenues linked to industrial production.

    Includes:

    Engineering
    Aerospace
    Construction

    Meet the manager

    Steve Cordell

    Steve Cordell

    Fund Manager, European Equities

    Investment
    career
    commenced
    1993
    Joined
    Schroders
    2013
    citywire triple A

    Overview

    Steve joined Schroders following the acquisition of Cazenove Capital in July 2013, he has over 20 years of investment experience. He was a senior member of the pan-European equity team at Cazenove, having joined in 2002. Prior to Cazenove, he was at HSBC Asset Management (Europe) Ltd where he was responsible for several retail and institutional pan-European portfolios.

    Read the interview with Steve >

    Our funds

    The three funds using this distinct approach are:

    Source for ratings: Morningstar, as at 31 July 2015. Steve Cordell holds an AAA Citywire rating, as at 31 July 2015.