Schroder UK Mid 250 Fund. Interim Short Report 1 August 2015 to 31 January 2016

Transcription

1 Schroder UK Mid 250 Fund Interim Short Report 1 August 2015 to 31 January 2016

2 Review of Investment Activities From 31 July 2015 to 29 January 2016, the price of A Accumulation units on a selling price basis fell 13.52%. In comparison, the fund s benchmark the FTSE* 250 ex Investment Trust Index generated a total return of 5.82% 1. The FTSE* All Share Index generated a total return of 7.22% 1 over the same period. 1 Source: Thomson Reuters Datastream. Weakness in crude oil prices continued to be the common thread linking a number of our worst performing positions. This was either directly, as in the case of oil exploration and production business Premier Oil and oil equipment services play Lamprell, or indirectly, with Raven Russia and ITE Group. Raven Russia is an investor in industrial warehousing in Russia, while events firm ITE Group hosts its flagship exhibition in the oil dependent country. Regulatory changes weighed on International Personal Finance after Slovakia introduced new consumer legislation, which the company warned would have a material adverse impact on its Slovak business. On the positive side, Cable & Wireless Communications performed well as the board recommended a part shares offer from European cable group Liberty Global. Gaming group Bwin. Party Digital Entertainment was another top contributor after shareholders voted in favour of its reverse acquisition of GVC Holdings. We benefited from not owning oil services group Amec Foster Wheeler, where worries about its balance sheet weighed heavily, or engineering companies Weir and IMI as these suppliers of capital equipment to the energy sector also fell in line with lower oil prices. We established new positions in emergency repairs business HomeServe and casino and bingo hall operator Rank Group as both have exciting growth prospects. In financials we initiated new holdings in interdealer broker ICAP and emerging markets focused fund manager Ashmore Group. We sold specialist lender Provident Financial ahead of its promotion to the FTSE 100 in December, and took a new position in self storage specialist Safestore Holdings after it gained FTSE* 250 Index entry at the end of October. We think that value will outperform in 2016, as underlined by recent merger and acquisition activity. Cable & Wireless Communications, for example, was trading on a lowly valuation prior to attracting its bid, and our portfolio has plenty more overlooked companies trading on low earnings multiples and offering premium dividend yields. Fund Manager: Andrew Brough

3 Fund Information Interim Final Accounting dates 31 January 31 July Revenue allocation date 30 September For the period For the year Ongoing charges figure to to A Income units 1.66% % A Accumulation units 1.66% % L Income units 0.83% % L Accumulation units 0.83% % Z Income units 0.91% % Z Accumulation units 0.91% % 1 The Ongoing charges figure is annualised based on the fees incurred during the accounting period. Performance Record Net Asset Net Asset Value as at Value as at Net Asset Value Fund performance pence per unit pence per unit % change A Income units (13.28) A Accumulation units (13.28) L Income units (12.93) L Accumulation units (12.91) Z Income units (12.96) Z Accumulation units (12.95) 3 months 6 months 5 years Schroder UK Mid 250 Fund (8.64)% (13.52)% 56.26% FTSE* 250 ex Investment Trust Index (3.39)% (5.82)% 69.58% FTSE* All Share Index (3.77)% (7.22)% 29.92% Fund Source: A Accumulation units on a selling price to selling price basis to Indices Source: Thomson Reuters Datastream, total return to * FTSE International Limited ( FTSE ) FTSE. FTSE is a trade mark of London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE s express written consent. Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money.

4 Performance Record (continued) Unit price range A Income units A Accumulation units Highest Lowest Highest Lowest buying selling buying selling Financial year to 31 July p p p p Financial period to 31 January L Income units L Accumulation units Highest Lowest Highest Lowest buying selling buying selling Financial year to 31 July p p p p Financial period to 31 January Z Income units Z Accumulation units Highest Lowest Highest Lowest buying selling buying selling Financial year to 31 July p p p p Financial period to 31 January Net revenue A Income units A Accumulation units Financial year to 31 July pence per unit pence per unit Financial period to 31 January 2016 Nil Nil L Income units L Accumulation units Financial year to 31 July pence per unit pence per unit 2013 Nil Nil Financial period to 31 January 2016 Nil Nil

5 Performance Record (continued) Z Income units Z Accumulation units Financial year to 31 July pence per unit pence per unit Financial period to 31 January 2016 Nil Nil Portfolio Information % of net % of net assets assets as at as at Spread of investments Oil & Gas Basic Materials Industrials Consumer Goods Health Care Consumer Services Telecommunications Financials Technology Net other assets % of net assets as at Major holdings Grainger 8.51 Redrow 6.85 Bovis Homes Group 5.69 Victrex 3.07 Halma 3.05 Photo-Me International 3.01 Dechra Pharmaceuticals 2.83 Millennium & Copthorne Hotels 2.76 BGEO Group 2.70 Investec 2.64 % of net assets as at Grainger 7.66 Redrow 6.26 Bovis Homes Group 5.71 International Personal Finance 3.27 Victrex 3.12 Millennium & Copthorne Hotels 3.05 WS Atkins 2.95 Photo-Me International 2.90 Investec 2.89 BGEO Group 2.54

6 Investment Objective & Policy The fund s investment objective is to achieve long term capital growth by investing principally in companies listed in the FTSE 250 Index. The fund will invest principally in equities of companies whose shares are listed in the FTSE 250 ex Investment Companies Index. However, the fund may also hold former components of, or expected entrants into, that index if in the opinion of the Manager it may be advantageous to do so. Investment will be in directly held transferable securities. The fund may also invest in collective investment schemes, warrants and money market instruments. Risk Profile Risk and reward indicator Lower risk Potentially lower reward Higher risk Potentially higher reward The risk category was calculated using historical performance data and may not be a reliable indicator of the fund s future risk profile. The fund is in this category because it can take higher risks in search of higher rewards and its price may rise and fall accordingly. The fund s risk category is not guaranteed to remain fixed and may change over time. A fund in the lowest category does not mean a risk free investment. Specific risks The fund invests in assets which are exposed to currencies other than sterling. Exchange rates may cause the value of overseas investments and the revenue from them to rise or fall. The fund invests solely in the securities of a particular country. There may be a greater risk than investing in funds that hold securities in a range of countries. The fund invests in smaller companies which may be less liquid than larger companies and price swings may therefore be greater than in larger company funds. For these reasons, the purchase of units should not normally be regarded as a short term investment.

7 Report & Accounts This document is a short report for the Schroder UK Mid 250 Fund for the period ended 31 January The long form Report & Accounts for the fund are available on our website or upon written request to Schroders, FREEPOST, RLTZ-CHSY-HBUT, PO Box 1102, Chelmsford, Essex CM99 2XX. Other Information The information contained in this report is designed to enable unitholders to make an informed judgement on the activities of the fund during the period it covers and the results of those activities at the end of the period. For more information about the activities and performance of the fund during this and previous periods, please contact the Manager. The Prospectus, the Key Investor Information Document and details of investment charges and costs are available on request or can be downloaded from our website Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money. For investors security, calls to Schroder Investor Services may be recorded. Manager: Schroder Unit Trusts Limited, 31 Gresham Street, London EC2V 7QA. Authorised and regulated by the Financial Conduct Authority. Investment Adviser: Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA. Authorised and regulated by the Financial Conduct Authority. Trustee: J.P. Morgan Europe Limited, Chaseside, Bournemouth BH7 7DA. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Independent Auditors: PricewaterhouseCoopers LLP, Atria One, 144 Morrison Street, Edinburgh EH3 8EX. For further literature please contact Schroder Investor Services on or at investorservices@schroders.com, or visit our website at Issued in March 2016 by Schroder Unit Trusts Limited, 31 Gresham Street, London EC2V 7QA. Registered No: England. Authorised and regulated by the Financial Conduct Authority. w35659 MR060BI16

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