22nd Dec 2015 18:35
LONDON (Alliance News) - Schroder UK Mid Cap Fund PLC said Tuesday that it underperformed its benchmark, the FTSE 250 excluding investment companies index, in the year to end-September.
It reported a total return on net asset value of 8.2% for the year, compared to a 12.7% return from its benchmark.
The fund said that following a strong run of outperformance over many years it was "disappointing" to report underperformance. It attributed its performance to the impact of poor commodities prices on a number of stocks with an exposure to the oil sector.
The fund proposed a final dividend of 6.70 pence, which takes its total dividend for the year to 9.20 pence, up 8.2% from the previous year.
"We remain very optimistic about the longer term future for a carefully selected portfolio of mid cap shares; the company's history has shown how much money can be made if the selection is good enough, given the wide range of opportunities. Having regard to current market valuations however, the board and your manager remain reluctant to use the gearing facility in the short term," the company said in a statement.
Shares in Schroder UK Mid Cap closed down 0.2% at 367.90 pence Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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Related Shares:
Schroder UK Mid & Small Cap Fund