Fund Profile


This is a non-independent marketing communication commissioned by Schroder Investment Management. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

SCF has outperformed the index over the long term and boasts a premium yield to the market…

Sue Noffke has been the lead manager of Schroder Income Growth (SCF) since July 2011 and focuses on achieving two main objectives – providing real income growth, meaning it exceeds the rate of inflation, and growth in investors’ capital. Sue and her team invest predominantly in UK stocks, ensuring that the portfolio blends companies that have sustainably high yields with lower-yielding companies offering much stronger future growth prospects. Each company also needs to showcase traits the team deem desirable, such as healthy finances, proven management or a strong competitive advantage others in the industry may struggle to compete with (see Portfolio). The team are stock pickers at heart, valuing the importance of fundamental, bottom-up analysis and placing a strong emphasis on exploiting market inefficiencies, whereby a company, which in their view has strong fundamentals, has been valued inappropriately by the market.

Under Sue’s tenure, this strategy has proved effective, comfortably outperforming the index, buoyed by strong stock selection in small- and medium-sized companies, the latter in particular. Over the last 12 months, however, SCF has lagged the index, largely down to its bias towards these companies. They are tied more closely to the prospects of the UK economy, so the adverse investor sentiment associated with weak economic issues led to valuations falling as a result, although as sentiment has improved since October, performance has picked up a little (see Performance).

SCF boasts a premium Dividend yield to the market, and over its latest financial year increased dividends by 4.6%. The board has increased dividends for 28 consecutive years and feature on the AIC ‘Dividend Heroes’ list. At the time of writing SCF is trading at a wider Discount to both its five-year and AIC sector average, though this has narrowed meaningfully since October, owing largely to the bounce back in the FTSE 250.

SCF has been awarded a Kepler Income & Growth Rating for 2023.

Kepler View

We think that SCF is well positioned to deliver on its objectives of a growing income and capital growth. Sue Noffke is an experienced manager and has cultivated an investment approach which has rewarded investors well over time. She is supported by a strong team and has access to vast resources at Schroders, which allow her to fish for opportunities across the whole market, including areas the more traditional equity income strategies avoid, such as the lower-yielding companies further down the market cap scale (see Portfolio). In our view, being able to balance companies with lower yields and those with higher, yet sustainable yields, offers good diversification from an income perspective as well as differentiating it from many peers in the sector.

This is an interesting time to be allocating to the UK, in our view. UK equity valuations are sitting at historic lows . The trust’s higher Gearing is worth bearing in mind, which adds to risk. However, while SCF is sitting at wider discount to its historic average, it has narrowed materially since October 2023, given the uptick of performance from the FTSE 250. If this rebound continues, then the discount could continue to narrow, acting as an extra kicker to returns, which, coupled with its strong Dividend and long-term Performance record, could indicate a potentially good entry point for long-term investors wanting access to the UK market.


  • Experienced lead manager with access to a deep pool of resources at Schroders
  • Track record of outperformance of index and income growth ahead of inflation under manager’s tenure
  • Well-diversified list of UK businesses that also derive significant revenues overseas


  • Greater exposure to small- and medium-sized companies may bring more sensitivity to the UK economy
  • Large-cap outperformance may put pressure on the trust
  • 14% gearing will magnify gains on the upside but also losses on the downside
Continue to Portfolio
2024 Kepler Income & Growth Rated Fund

This trust has been awarded a rating by Kepler Trust Intelligence for income & growth... Find out more

Fund History

29 Apr 2024 Results analysis: Schroder Income Growth
SCF’s Sue Noffke has increasingly found opportunities in the out-of-favour small and mid-cap space amidst attractive valuations…
28 Feb 2024 Catch a falling star
Our analysts discuss three discounted sectors that could be due a rebound…
21 Feb 2024 Pitch doctoring
Our analyst argues the upcoming budget should see radical action to boost the UK market…
08 Mar 2024 Schroder Income Growth
Sue Noffke
Rewatch this webinar as part of our month-long online series 'Themes for your ISA in 2024' hosted by the team at Kepler Trust Intelligence throughout March...
Watch Recording
26 Jan 2024 Fund Analysis
SCF has outperformed the index over the long term and boasts a premium yield to the market…
17 Jan 2024 Top of the Pops
We reveal the winners of our investment trust ratings for 2024…
13 Dec 2023 In-come all ye faithful
Equity income could be a beneficiary of the higher interest environment, with trusts a good way to capture it…
12 Dec 2023 UK equity’s income opportunity with SCF manager Sue Noffke - Podcast: Trust Issues #23
SCF Manager Sue Noffke tells us why the trust has geared up and is overweight small and mid-cap stocks…
27 Oct 2023 Results analysis: Schroder Income Growth
SCF has a strong track record in delivering both income and capital growth over the long-term…
02 Jun 2023 Investing for income in a world of inflation
The attractive alternatives to cash for UK income investors...
20 Feb 2023 Fund Analysis
SCF has a strong track record of delivering income and capital growth…
11 Jan 2023 Solving the Rubik’s Cube
We reveal the winners of our investment trust ratings for 2023…
06 Jan 2023 Investment trusts: a rare opportunity in UK small and mid-sized companies
Opportunity knocks for UK small and mid-sized companies – find out why...
12 Aug 2022 Fund Analysis
Attractive income and growth prospects from a portfolio of UK companies…
20 Jan 2021 Kepler's top-rated investment trusts for 2021
We update our annual quantitative ratings for investment trusts…
15 Apr 2020 Hold fast
Investment trusts' revenue reserves could make them a vital stronghold for investors facing UK dividend cuts of as much as 47%....
04 Feb 2020 Fund Analysis
A UK focused trust which has raised its dividend every year for the past 26 years...
05 Dec 2019 Holding something in reserve
A sterling bounce poses a threat to UK dividends - we look at how UK equity income investment trust managers stand prepared…
17 Jul 2019 Ready for action
In the second part of our active management series, we assess the most active managers across the major closed-ended equity sectors…
03 Jun 2019 Knowledge is power
Schroder Income Growth's Sue Noffke discusses how she tactically employs gearing in her trust, the benefits of a fixed capital base and how she balances the demands of a board...
28 May 2019 Fund Analysis
A trust with an exceptional track record for not only outperforming the benchmark, but also for delivering dividend growth...
30 Jan 2019 The Income Portfolio
We reveal our investment trust picks for a mixture of income and capital growth...
06 Nov 2018 Everything you wanted to know about Brexit but were too afraid to ask...
Schroders' Sue Noffke answers 23 key questions and highlights some investment opportunities as negotiations move to a crucial stage...
25 Jul 2018 The Bulletproof Income Portfolio
Our Bulletproof Income Portfolio was set up to illustrate the benefits of investment trusts in providing a stable income...
20 Nov 2017 Fund Analysis
A UK income trust run via pragmatic approach that aims to blending higher-yielding shares to try and bolster income generation with lower yielding shares that should help maintain dividend and capital growth
24 May 2017 Fund Analysis
24 May 2017 Champion funds for income investors
We unveil a sophisticated new rating system designed to pinpoint the UK's best equity income funds...
22 Feb 2017 A challenge of perception
Asian Total Return Investment Company chairman David Brief says the trust's total return focus is misunderstood by many investors....
22 Feb 2017 Fund Analysis
21 Feb 2017 Digging in
The Bulletproof Income Portfolio enters 2017 with increased dividend cover at a time when a defensive income seems more precious than ever...
26 Jan 2016 Dodging bullets
The Bulletproof Income Portfolio performed well in a turbulent 2015, the perfect year to test its strengths...
05 Jun 2015 Fund Analysis
05 Jun 2015 The Bulletproof Income Portfolio
Six investment trusts with income credentials to die for.
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