Regulatory News Feed

The assets of the Company will be realised in a controlled, orderly and timely manner, with the objective of achieving a balance between (i) periodically returning cash to shareholders at such times and from time to time and in such manner as the Board (in its absolute discretion) may determine; and (ii) optimising the net realisation value of the Company’s investments. The strategy for realising individual investments will be flexible and may need to be altered to reflect changes in circumstances of a particular investment or in the prevailing market conditions. All material disposals of assets to be made by the Company will be approved by the Board. The Company may not make new investments, except where required to preserve and/or enhance the disposal value of its existing assets. (Please see above for the Company’s Investment Policy in full.)

The Company may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the fund, both up and down, which may adversely impact the performance of the fund.

The Company may borrow money, which is known as gearing. Gearing will increase returns if the value of the assets purchased increases in value by more than the cost of borrowing, or reduces the returns if they fail to do so.

As a result of fees being charged to capital, the distributable income of the fund may be higher but there is the potential that performance or capital value may be eroded.

The Government has been considering reforms to the residential leasehold system and building safety regime since 2017. This has created uncertainty and impacted the Company’s valuation.  Whilst the Building Safety Act 2022 was introduced in April 2022, the final outcome of future legislation remains unclear and could negatively impact the Company’s portfolio further. The Board of the Company and Schroders as Investment Manager are focussed on delivering the strategy of improving the liquidity of the underlying portfolio, including managing the various headwinds to do with building safety and leasehold reform, whilst continuing to support our leaseholders by delivering best-in-class residential asset management, and ultimately optimising value for our shareholders. Further details are contained in the recent report and accounts.