1970
First Value Fund established
150 years
Cumulative experience across diverse team
2,500+
Entries into our Value research archive
3 Lens
Proprietary assessment of sustainability credentials
What is value investing?
At its core, value investing is about identifying companies that appear undervalued relative to their long-term potential. Value investors look beyond short-term market movements and focus on understanding what a business is worth based on its fundamentals.
Markets do not always price companies perfectly. Temporary challenges, economic uncertainty or shifts in investor sentiment can create opportunities where a company's share price falls below its underlying value. Value investors seek to identify these opportunities and invest with a long-term perspective.
Why Schroders for value?
The Schroder Global Value Team is a specialist value-investing boutique within Schroders. Our value-investing heritage stretches back more than 50 years. The team manages UK, European, global and international equity strategies.
We focus on long-term returns using a disciplined, rigorous and repeatable process. For more than a decade, the key inputs to our investment decisions have been recorded in our Value Archive. This resource contains more than 2,500 entries and enables us to review our decisions, identify potential areas for improvement and seek to enhance the efficiency and effectiveness of our process over time.
As part of Schroders, the team operates with the focus of a specialist boutique while benefiting from the resources of a global investment organisation. These include a broad network of investment professionals and specialist expertise across product, trading sustainability, implementation, and other support functions.
For clients looking for authentic, disciplined and consistent value investing, to both pursue outstanding long-term returns and serve as dependable source of portfolio diversification, we are committed to delivering exactly that.
Authentic value investing
Fundamental value investing is our passion. We are willing to look beyond short-term market sentiment and focus on the underlying economics of a business.
Our approach is firmly rooted in bottom-up analysis. We seek to identify securities trading at a significant discount to our assessment of intrinsic value. By paying conservative prices relative to a company’s normalised earnings power or asset value, we seek to establish a margin of safety and reduce our reliance on speculative forecasts.
We believe this approach can help us identify opportunities where market prices do not fully reflect a company’s long-term potential.
Our approach:
- Contrarian and fundamental
- A margin of safety is central to our investment decisions
- A long-term focus on intrinsic value
Disciplined and rigorous analysis
To put our investment principles into practice, the team follows a rigorous and repeatable stock-selection process.
Through the application of our 7 Red Questions framework – a checklist specifically designed for contrarian value investing - we aim to differentiate between genuinely mispriced businesses and ‘value traps’. We use data to improve our efficiency, examine our decision-making, and ensure we learn systematically from our mistakes.
Our process:
- Intensive bottom-up analysis across the team
- 7 Red Questions, aiming to differentiate opportunity from value traps
- Data-driven evolution and learning
- Sustainability leader assessment
Sustainability analysis integrated with valuation and risk assessment
Sustainability considerations are incorporated alongside our assessment of valuation, business quality and risk. As part of our broader investment process, we seek to understand how environmental, social and governance factors may influence long-term company performance and investment outcomes.
For our sustainable value strategies, we apply an additional layer of scrutiny through our proprietary 3 Lens Assessment. Combining proprietary tools, external insights and our bottom-up analysis, the framework helps us evaluate sustainability credentials and identify companies with positive societal value and industry-leading sustainability practices.
Genuine active management
We are active investors. We do not seek to replicate index weights or allow benchmark composition to determine our investment decisions. Instead, we build portfolios that balance high-conviction ideas while considering absolute risk and diversification.
As a team, we use the same definition of risk with our client’s portfolios as we do with our own money, seeking to avoid the permanent loss of capital by buying securities with an embedded margin of safety and diversifying our exposures within the cheapest parts of the market.
We believe genuine active management is essential to delivering differentiated value exposure through the market cycle.
"Our mission is to deliver the best returns for our clients through authentic value investing, grounded in excellence, teamwork, and continual improvement."
Head of Global Value Equities, Fund Manager
Meet the team
We foster a collaborative culture where rigorous debate is encouraged and collective improvement matters more than individual credit. Supported by our shared analytical framework and Value Archive, this helps us make better decisions.
Contact us
Important information
All investments, domestic and foreign, involve risks, including the loss of principal. Diversification cannot ensure profits or protect against loss of principal. For illustrative purposes only and does not constitute to any recommendations to invest in the above-mentioned security / sector / country.
Past performance is no guarantee of future performance. The value of investments and the income from them can go down as well as up, and you (or your clients) might not get back what you originally invested.