Schroder UK Growth has published results for the year ended 30 April 2015. The fund lagged the FTSE All-Share index by some margin over this period, returning 1.9% on net assets and negative 3.1% on share price (the discount widened to 8.4%) as compared to positive 7.5% for the benchmark. the dividend for the year was increased from 4.5p to 5p and there is also a 1p special dividend.
Julie Dean was replaced as portfolio manager by Philip Matthews on 30 October 2014. The year’s underperformance was distributed 4.6% under Julie’s tenure and 0.5% under Philip. It looks as though the result reflects underperformance by smaller companies in the first half – this is common to many trusts but Schroder UK Growth will not have participated in the post election rally (that would in any case have fallen after the period end).
Stocks mentioned as contributors to underperformance in the first half include printing technology firm Xaar, which experienced pricing pressure from competitors in China; engineering turnaround specialist Melrose Industries; online retailer N Brown; Thomas Cook and Rolls-Royce. In the second half it was Drax, Ladbrokes and the fund’s commodity related holdings.
SDU : Schroder UK Growth fails to make up ground in second half