21st Dec 2020 11:57
(Alliance News) - Schroder UK Mid Cap Fund PLC on Monday said it outperformed its benchmark amid a challenging 12 months due to the Covid-19 pandemic.
The London-based mid-cap-focused investment trust said its net asset value per share was 568.99 pence as at September 30, down from 633.51p the year prior.
Schroder UK Mid Cap's NAV total return for the year was minus 7.7%. This beat its benchmark, the FTSE 250 ex-Investment Trusts Index, which returned minus 15%, which the company put down to stock selection, with gearing having a "small negative effect," it added.
Schroder UK Mid Cap said it plans to pay a 9.5p per share final dividend, and is able to partially fund it using some of its revenue reserves. In addition to the previously declared 3.8p per share interim dividend, the trust's total dividend for the year is 13.3p per share, which is a decrease of 28% from the year before.
Looking ahead, the trust expects the current level of dividend to be maintained next year. While keeping a cautiously optimistic eye on the UK economy, Schroder UK Mid Cap said it will "continue to focus the portfolio on seeking out the next mid-cap disruptor."
Shares in Schroder UK Mid Cap were down 6.4% at 569.12p in London on Monday.
By Zoe Wickens; [email protected]
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Schroder UK Mid & Small Cap Fund