Schroder British Opportunities (SBO) is proposing a material change to its investment policy so that its portfolio is focused entirely on private investments. SBO says that, since its IPO, it has provided a net asset value (NAV) total return of 13.44% and that much of the positive performance of its portfolio has come from the private equity investments, which have delivered a return of 1.5x the original investment, whilst the public equity investments have detracted. SBO says that both its board and manager believe that the private equity portion in its portfolio offers a better opportunity set in the current market environment and, following discussions with shareholders, SBO’s board is proposing to “materially change the Company’s Investment Policy such that it is focused entirely on private equity investments”. This change requires approval rom the FCA and SBO shareholders and a further announcement will be made in due course.
As at 11th March 2025, SBO’s total net assets were £82.0m with the portfolio split approximately 23.5% and 70.0% in public equity and private equity investments, respectively, and 6.5% held in cash. SBO says that, should shareholders vote to approve the investment policy change, it expects that its public equity investments will be liquidated, pending reinvestment into private equity investments. Tim Creed and Peraveenan Sriharan will remain SBO’s co-portfolio managers and will be supported by, Chris Taylor, Head of Pan European Equities, who will oversee the transition of the existing public equity portfolio on behalf of Schroders. Uzo Ekwue has stepped down as Co-Portfolio Manager.
2028 continuation vote
SBO’s articles require its board to put forward a continuation vote to shareholders no later than 31 May 2028, unless alternative proposals are put forward. SBO’s articles state that, for this winding-up resolution, voting is enhanced such that it will be passed if a single vote is cast in favour and so SBO is regarded as having a fixed life.
SBO says that, contingent on approving the proposed investment policy change, its board is proposing to bring forward the winding-up-resolution to the first quarter of 2027. In line with the provisions in the articles, the Board will consult with shareholders ahead of this vote. If the investment policy change is approved, it is expected that SBO’s portfolio will be fully deployed in private equity investments by the end of 2026.
