Schroder UK Mid Cap Fund plc - SCP

Backing tomorrow’s UK market leaders today

Why invest in SCP?

UK mid-caps are positioned in a sweet spot for innovation, disruption and growth. This is one of the key reasons why the UK Mid Cap index has beaten many other developed market indices over the long term [1]. The index has also produced a higher proportion of “30 baggers” than the US stock market over the last thirty years [2] and SCP has the opportunity to invest in the best of this diverse and dynamic investment universe.

Behind the trust: read our philosophy article >

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Rely on decades of expertise and a proven approach

With more than sixty years of combined investing experience, the team looks to select a portfolio of 40-50 of the most attractively valued companies with either ‘unique’ or ‘flex’ (at a strategic crossroads) characteristics, resulting in a high quality portfolio capable of delivering dependable long-term growth in a fast-changing world.

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An incomparable performance history

Since Schroders became Manager, SCP has been the best performing fund in the Association of Investment Companies UK All Companies sector [3]. Meanwhile, its dividend has grown by a factor of 10x in 20 years under Schroders management, from 2p in 2004 to 20.5p in 2024.

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UK mid caps offer extraordinary value

SCP provides access to an undervalued part of the UK stock market – one of the most attractively valued equity markets in the world. Valuations among UK mid-caps look unusually low relative to UK large-caps as well as mid-caps from elsewhere in the world, which may bode well for future performance.

Key Information

Slide 1 of 6
Annual Report & Accounts 2023
Annual Results 2023: Recording
Kepler Research Note
Latest Factsheet
Morningstar Report
Key Information Document

UK equities: what's the catalyst?

We examine whether there is anything on the horizon that has the potential to change the UK stock market’s relative fortunes, and find several reasons for positivity, particularly for UK mid caps.

Performance

For further performance data please visit the London Stock Exchange website

Ongoing charge (as at July 2023): 0.89%

Discrete yearly performance (%)

As at April 2024

Discrete yearly performance (%)

Apr 14 - Apr 15

Apr 15 - Apr 16

Apr 16 - Apr 17

Apr 17 - Apr 18

Apr 18 - Apr 19

Apr 19 - Apr 20

Apr 20 - Apr 21

Apr 21 - Apr 22

Apr 22 - Apr 23

Apr 23 - Apr 24

Share Price

-6.1

-0.5

19.6

8.4

6.2

-18.4

63.6

-15.3

3.3

3.8

Net Asset Value

7.0

-1.3

22.5

9.0

1.0

-19.5

53.3

-6.6

-1.9

5.6

Reference Index
(FTSE 250 excl. Investment Trusts Total Return)

13.2

-1.4

18.9

6.5

-1.4

-17.2

41.2

-6.7

-2.4

6.5

Source: Morningstar, net income reinvested, net of ongoing charges and portfolio costs and where applicable, performance fees, in GBP.

Performance over 5 years

Source: Morningstar, net income reinvested, net of ongoing charges and portfolio costs and where applicable, performance fees, in GBP.

Performance compared to reference index to March 2024
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View portfolio holdings

Awards and ratings

Morningstar-logo-3

Source: Morningstar, as at May 2024

Kepler

Source: Kepler Trust Intelligence, 2024

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Source: Investment Week, 2023

In the media

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The Daily Telegraph Questor Feature
Morningstar: 13 Questions for Schroders’ Jean Roche
Citywire: Schroders’ Roche takes lead in UK mid-cap rally
QuotedData Weekly Show Presentation - April 2023
Vestpod podcast: How do fund managers pick stocks?
Panmure Gordon: Podcast interview with Simon French
Vox Markets: Interview with Jean Roche
THIS IS MONEY: "10 investment trusts I think could sparkle this year"
FTSE 250 Index celebrates 30th anniversary with Jean Roche
Interactive Investor: A trust available at a double discount, plus two recent buys

More UK insights from Schroders

Listen to our Mid 250 Podcast

The FTSE 250 index is home to an impressive list of “multi-bagger” businesses. These are stocks which have provided investors with returns at a multiple of their starting value over a period of time.

In this podcast series, Manager Jean Roche and James Goodman interview the leaders at the helm of some of these companies, intent on learning more about the drivers to their financial success.

Available on all major podcasting platforms or browse our episode library below.

Disclaimer: Reference to stocks are for illustrative purposes only and does not constitute a recommendation to buy or sell. Companies that are referenced in the podcast may or may not be held within the Schroder UK Mid Cap Fund plc portfolio. Past performance is not a guide to future performance and may not be repeated.

Episode library

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The CEO that redefined a business and engineered a fifteen-bagger
The Secret Life of Pets at Home CEO
How a sausage maker became a 200 bagger since 1991
Hunting for "30 baggers" - how the UK beat the US

Meet the Managers

"We apply a high conviction approach, managing a focused portfolio of resilient companies which are either disruptors, challenging the status quo, or are well-established companies with sustained growth as they reinvent themselves in response to disruption."

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Jean Roche

Fund Manager, Pan-European Small and Mid Cap Team

Andy Brough

Head of Pan-European Small and Mid Cap Team

Corporate Governance

Find out more about the Company's Board, view key dates and keep up with regulatory news.

Documents

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Annual Report and Accounts 2023
Interim Report & Accounts 2023
2023 AGM Results
Privacy Policy
Financial Crime Policy
Terms of Reference: Management Engagement Committee
Terms of Reference: Nomination Committee
Terms of Reference: Audit & Risk Committee
Terms of Reference: Remuneration Committee
Alternative Investment Fund Managers Directive (AIFM) Disclosures

Archive


Annual Reports and Accounts

2022 / 2021 / 2020 / 2019 / 2018 / 2017 /

2016 / 2015 / 2014 / 2013 / 2012

Half Year Reports and Accounts

2022 / 2021 / 2020 / 2019 / 2018 / 2017 /

2016 / 2015 / 2014 / 2013

AGM Results

2022 / 2021 / 2020 / 2019

Circulars

2011

Disclaimers and sources

Sources:

[1] Source: Schroders, Bloomberg, rebased to 100 on 31 December 1993, data to 30 December 2023 with returns in local currencies. ‘Other developed markets’ are S&P 500, Eurostoxx and FTSE 100.

[2] Source: Refinitiv, Schroders, based on stocks which appreciated in value 30x or more (based on total returns) in the 30 years to 31 December 2023 and had a minimum market capitalisation of £150 million. 

[3] Source: Ranking in Association of Investment Companies (AIC) Sector, UK All Companies, as at 31 March 2024, sourced from Morningstar, covering period from close 1 May 2003 to 31 March 2024 (NAV ex income TR) – only 5 investment trusts currently in the sector have a track record for this period. 1 May 2003 is the data in which Schroders assumed management for the trust.

Fund risk considerations - Schroder UK Mid Cap Fund plc

  • Concentration risk: 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 company, both up or down, which may adversely impact the performance of the company.

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

  • Concentration risk: The fund 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 or down.

  • Currency risk: The fund may lose value as a result of movements in foreign exchange rates, otherwise known as currency rates.

  • Gearing risk: The company may borrow money to make further investments, this is known as gearing. Gearing will increase returns if the value of the investments purchased increase by more than the cost of borrowing, or reduce returns if they fail to do so. In falling markets, the whole of the value in that investment could be lost, which would result in losses to the fund.

  • Liquidity risk: In difficult market conditions, the fund may not be able to sell a security for full value or at all. This could affect performance and could cause the fund to defer or suspend redemptions of its shares, meaning investors may not be able to have immediate access to their holdings.

  • Operational risk: Operational processes, including those related to the safekeeping of assets, may fail. This may result in losses to the fund.

  • Performance risk: Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro economic environment, investment objectives may become more difficult to achieve.

  • Counterparty risk: The fund may have contractual agreements with counterparties. If a counterparty is unable to fulfil their obligations, the sum that they owe to the fund may be lost in part or in whole.

  • Market risk: The value of investments can go up and down and an investor may not get back the amount initially invested.

Non-Mainstream Pooled Investments (NMPI) Status

The Company currently conducts its affairs so that its shares can be recommended by IFAs to ordinary retail investors in accordance with the FCA's rules in relation to non-mainstream investment products and intends to continue to do so for the foreseeable future. The Company's shares are excluded from the FCA's restrictions which apply to non-mainstream investment products because they are shares in an investment trust.