Schroder UK Growth delivers last report before manager change – the board of Schroder UK Growth (SDU) announced in April that the manager would move from Schroder Unit Trusts Limited as its alternative investment fund manager (AIFM) and has appoint Baillie Gifford & Co Limited as the company’s new manager, company secretary and administrator. Click here to read more
Responsibility for managing the portfolio will move to Baillie Gifford from the end of the day on 29 June 2018, subject to the approval of the Financial Conduct Authority (FCA), but no later than 13 July 2018.
Upon appointment of the new AIFM, it is expected that the company’s name will be changed to Baillie Gifford UK Growth Fund plc and its ticker will change to BGUK.
Performance
In it’s annual report for the year ended 30 April 2018, the company reports that NAV delivered a total return of 9.1%. The share price rose by 15.0% on the same basis. The benchmark, the FTSE All-Share Index returned 8.2% over the same period. A number of large positions in the portfolio individually performed well, helped by positive operational delivery and increased M&A activity. The portfolio also benefited from a move my investors from relatively expensive quality growth companies towards ‘value’ stocks, which tend to perform well against a more inflationary backdrop.
Outlook from the new managers
The portfolio will be co-managed by Iain McCombie and Milena Mileva who will re-align the portfolio to invest in a concentrated selection of what they believe to be the best UK growth companies.
“The portfolio will reflect our highest conviction ideas which we believe will grow at an above average rate over the medium term. There will be periods when fundamentals are not reflected in shareholder returns, such as when our growth style is out of favour. We will, however, remain committed to our process and are confident that it will create significant value for shareholders over the long-term.”
SDU : Schroder UK Growth delivers last report before manager change