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.

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Schroder UK Mid Cap (SCP) is managed by Jean Roche and Andy Brough. Their aim is to generate total returns in excess of the FTSE250 ex Investment Trusts Index, through investing predominantly in UK mid-cap stocks. With an extensive analyst support team, they take a bottom-up stock selection approach to running a high conviction strategy – seeking companies that can demonstrate sustainable growth prospects with management teams that have a strong vision for success. They also favour companies that challenge the status quo and are adaptable to capitalise on change.

SCP offers access to different opportunities than those amongst the better known FTSE 100 Index, with larger exposures to the industrial and consumer discretionary sectors and domestic revenue sources. The trust’s Performance over the long-term is excellent and it has beaten the benchmark and the peer group average (AIC UK All Companies) over a five-year period. However, the last year has been challenging due to the number of geopolitical and macro events affecting energy prices and investor sentiment in the mid to small market cap segment.

Following the Brexit referendum, SCP’s Gearing was reduced on cautiousness, but has steadily been raised since, last standing at 11.5% (31/05/2022). There is no target for the dividend as the managers target a total return for the portfolio. However, except for 2020 when the impact of the pandemic hit underlying dividend payouts, the trust has a consistent track record of dividend increases and the historic yield is 3%. SCP has an ongoing charges figure (OCF) of 0.9%. ESG adherence plays a strong part in the selection process as the team believe that this can act as an additional layer of risk control.

Analyst's View

Jean Roche and Andy Brough have successfully managed SCP with a consistent strategy that has delivered outperformance over the medium and long-term. Despite this, SCP trades at a significant discount to its NAV. We take the view that this is a reflection of investor sentiment towards the mid-cap segment of the market rather than SCP itself. The more growth orientated mid-caps have historically suffered greater drawdowns than the large caps and are perceived as being riskier. The managers also suggest that international investors are under-allocated to mid-caps partly down to a knowledge gap.

Recent market turbulence has opened up SCP’s discount, but the managers believe that this is not representative of the operational performance of underlying portfolio companies which have reported resilient results in recent quarters. However, they express caution as they believe that economic conditions are likely to deteriorate over the short term.

We believe that investors who are prepared to ride out short term volatility should focus on the cyclical upturn and secular growth potential that the trust offers over the medium to long-term. The trust offers a reasonably good dividend yield and a different set of sector exposures than an investment benchmarked against the larger cap FTSE 100 Index. For a trust and managers with a good track record of alpha generation, the double-digit discount could be an attractive entry point.


  • Stock selection has driven good long-term performance
  • The managers’ view that UK Mid-caps are under invested by international investors, offering attractive valuations
  • SCP trades at a wide discount due to negative sentiment on the economy


  • Mid-caps are potentially more sensitive to the UK domestic economy with recessionary fears mounting
  • Drawdowns tend to exceed those of the wider FTSE All-share index
  • Gearing could enhance losses
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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

27 Jun 2024 Results analysis: Schroder UK Mid Cap
SCP’s discount remains wide, despite the excellent long-term performance…
26 Jun 2024 Kings for a day
As Britain heads to the polls, our analysts imagine what they'd do given a chance to implement economic reform…
31 May 2024 Always look on the bright side of life
We argue that optimism is more likely to serve investors better than pessimism…
26 Apr 2024 Bringing it home
Why investors are missing a trick by ignoring their home market…
26 Apr 2024 Here comes the sun
Why the clouds are starting to clear for UK equities…
11 Apr 2024 Fund Analysis
Mid-caps have bounced back on the potential for rate cuts…
15 Mar 2024 Schroder UK Mid Cap Fund plc: UK equities – what’s the catalyst?
Mid caps particularly well poised for a UK renaissance...
17 Jan 2024 Top of the Pops
We reveal the winners of our investment trust ratings for 2024…
14 Dec 2023 Results analysis: Schroder UK Mid Cap
Stock selection has driven SCP’s strong performance, but low valuations could offer much more…
30 Aug 2023 UK OK, HUN?
Sentiment towards the UK is at rock bottom, which means only one thing…
06 Apr 2023 Fallen Kingdom?
Since the UK was described as a ‘Jurassic Park’ stock market, it has outperformed. Is this a new age for the stock market..?
22 Mar 2023 Fund Analysis
SCP targets unique exposures from the dynamic mid-cap index, which is arguably still cheap…
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...
16 Dec 2022 Investment Trusts: opportunities in all market conditions
How are current market conditions impacting the Schroders investment trust range?
12 Oct 2022 The Buck stops where?
The US dollar has surged in 2022, but many are questioning whether this can be sustained...
05 Oct 2022 European equities: Oui ou non?
Our analysts go head to head on the prospects for investors looking to the continent for prospective investments...
27 Jul 2022 Has the comeback begun?
Our analysts debate whether the market has fully priced in the current inflation and looming recession…
20 Jul 2022 Fund Analysis
An appealing double-digit discount for those willing to ride out near term uncertainty...
05 Jan 2022 Kepler’s top-rated trusts for 2022
We unveil the winners of our ratings for 2022 in the Growth, Income & Growth and Alternative Income categories…
28 Apr 2021 The next value opportunity?
Two of our analysts debate whether Europe's improving vaccination programme will be the next opportunity for investors in their pursuit of returns...
12 Feb 2021 Schroder UK Mid Cap: Worth a closer look?
In the first of our articles focused on Kepler Rated trusts, we examine this trust which has seen its discount widen for reasons which, in our view, don't make much sense...
20 Jan 2021 Kepler's top-rated investment trusts for 2021
We update our annual quantitative ratings for investment trusts…
28 Nov 2019 Fund Analysis
UK mid-cap specialist with an extensive track record, trading on a wide discount...
01 Aug 2017 Fund Analysis
A UK equity trust focused on FTSE 250-listed companies run by one of the most experienced mid-cap managers in the country...
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