Schroder UK Growth Fund Plc

The following risks are associated with investments the Schroder UK Growth Fund plc:

• Portfolios which invest in a smaller number of stocks carry more risk than funds spread across a larger number of companies.
  
  
• As the annual management fee of the fund is charged partially to capital, the distributable income of the fund may be higher, but the capital value of the fund may be eroded which will affect the future performance of the fund. 
  
  
• Investment trusts may use a certain amount of borrowing to purchase additional holdings, which is known as gearing.  Gearing will increase returns if the value of the investments purchased rise faster than borrowing costs, or reduce returns if they fail to do so.