Interim Management Statement

RNS Number : 3498O

Schroder UK Growth Fund PLC

18 September 2013

SCHRODER UK GROWTH FUND PLC

Interim Management Statement for the Quarter Ended 31 July 2013

The Board of Schroder UK Growth Fund Plc ("the Company") announces its first Interim Management Statement for the year ending 30 April 2014, as required by the UK Listing Authority's Disclosure and Transparency Rules. This Statement is in respect of the period from 1 May 2013 to 31 July 2013.

Investment Objective

The Company's principal investment objective is to achieve capital growth predominantly from investment in UK equities, with the aim of providing a total return in excess of the FTSE All-Share Index.

Company Statistics as at 31 July 2013

Net assets	£301.3 million
Net Asset Value ("NAV") per Ordinary share (cum income)	187.23p
Share price	176.25p
Discount (to ex income NAV)	5.3%
Number of portfolio holdings	55
Gearing	5.7%
Yield	2.3%

% Cumulative Performance to 31 July 2013

Performance over	3m	6m	1yr	3yr
Share Price (total return)	13.8	15.2	45.8	61.0
Net Asset Value (total return)	10.4	15.5	45.7	65.7
FTSE All-Share Index	4.4	8.9	24.3	43.4

Source for all performance data: Morningstar

Portfolio Information as at 31 July 2013

Ten Largest Holdings

Stock Name	Sector Classification	Market value (£,000)	Percentage of NAV
Rio Tinto	Basic Materials	14,775	4.9
Barclays	Financials	14,296	4.7
Melrose	Industrials	14,171	4.7
Legal & General	Financials	13,252	4.4
Aviva	Financials	11,832	3.9
Tate & Lyle	Consumer Goods	11,728	3.9
Reed Elsevier	Consumer Services	11,395	3.8
GKN	Consumer Goods	11,127	3.7
Resolution	Financials	10,415	3.5
Pearson	Consumer Services	9,848	3.3

Sector Allocation

Sector

Percentage of

NAV

Consumer Services	31.8
Financials	31.1
Industrials	17.1
Consumer Goods	8.6
Basic Materials	8.1
Healthcare	5.4
Oil & Gas	3.0
Technology	1.2
Other net liabilities	(6.3)

Changes to Share Capital during the Quarter Ended 31 July 2013

There were no changes to the Company's share capital during the quarter. There remain a total of 160,917,184 Ordinary shares of 25p in issue at 31 July 2013 and no shares held in Treasury. Therefore the total number of voting rights in the Company is 160,917,184.

Material Events or Transactions

Following the announcement that Richard Buxton and Errol Francis were to leave

Schroders in June 2013, the Board agreed to Julie Dean assuming the role of the Company's lead portfolio manager. Julie joined Schroders in July 2013 as part of the Cazenove Capital Acquisition, which was approved by the shareholders of Cazenove Capital Holdings Limited on 17 May 2013.

The Board has amended the Company's investment policy so that Julie is able to manage the Company in the style which she applies to the Cazenove UK Opportunities Fund. The key changes to the investment policy were: an expansion to the investable universe allowing the Company to invest up to 5 per cent. of net assets at the time of investment in each of smaller capitalisation stocks and AIM stocks; a clarification that stocks are principally selected for their potential

to provide attractive returns relative to the FTSE All-Share Index; and an increase in the number of stocks (although still retaining a relatively concentrated portfolio) in which the Company is able to invest.

In connection with its retention as manager following the change in personnel of the lead portfolio manager, the Manager agreed to reduce the management fee charged to the Company. With effect from 1 July 2013, this is 0.60 per cent. (previously 0.65 per cent.) of the Company's net assets less current liabilities and, from that date, the Company will also no longer be charged a separate secretarial fee.

Details of the above were announced in a circular on 1 July 2013.

On 2 August 2013, the holders of Subscription Shares in the Company approved the redesignation of Subscription Shares as Deferred Shares, the conferral of irrevocable authority on the Company's Board of Directors to cancel and/or purchase the Deferred Shares and the amendment of the Company's Articles of Association to remove all references to the Subscription Shares and the Deferred Shares and the rights attaching to each of these Shares.

Accordingly, all outstanding Subscription Shares were converted into Deferred Shares and repurchased by the Company, without making any payment, and cancelled on 30 August 2013.

There have been no other material events or transactions that have taken place between 1 May 2013 and the date of publication of this Statement.

Company Information as at 31 July 2013