Interim Management Statement

RNS Number : 9700R

Schroder UK Growth Fund PLC

17 September 2014

SCHRODER UK GROWTH FUND PLC

Interim Management Statement for the Quarter Ended 31 July 2014

The Board of Schroder UK Growth Fund Plc ("the Company") announces its first Interim Management Statement for the year ending 30 April 2015, as required by the UK Listing Authority's Disclosure and Transparency Rules. This Statement is in respect of the period from 1 May 2014 to 31 July 2014.

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.

Material Events or Transactions

Appointment of Alternative Investment Fund Manager

During the period, pursuant to the Alternative Investment Fund Managers Directive ("AIFMD"), the Company appointed Schroder Unit Trusts Limited ("SUTL") as its Alternative Investment Fund Managerto provide portfolio management, risk management and company secretarial services to the Company. In order to facilitate this appointment, the Company has terminated its existing investment management agreement with Schroder Investment Management Limited ("SIM") and has entered into a new agreement with SUTL. Under these new arrangements, certain functions have been delegated from SUTL to SIM.

Appointment of Depositary

During the period, pursuant to the AIFMD, the Company appointed HSBC Bank plc as its Depositary, responsible for, inter alia, cash monitoring, custody of financial instruments, verification of ownership of assets and oversight.

Second Interim and Special Dividends for the Year ended 30 April 2014

A second interim dividend of 2.25p per share and a special dividend of 1.00p per share for the year ended 30 April 2014 were both paid on 31 July 2014 to shareholders on the register on 11 July 2014.

Annual General Meeting and Continuation Vote

The Annual General Meeting of the Company was held on 5 August 2014. All resolutions set out in the Notice of Meeting were duly passed.

These resolutions included an ordinary resolution to approve the continuation of the Company as an investment trust for a further five year period.

Retirement of Director

As part of the refreshment of the Board, Mr David Ritchie retired as a Director of the Company at the Annual General Meeting held on 5 August 2014 and did not seek re-election.

The Directors extend their gratitude for Mr Ritchie's invaluable contribution to the Company during his 13 year tenure as a Director.

Lead Portfolio Manager

On 8 September 2014, the Company made the following announcement:

"The Board of Schroder UK Growth Fund plc (the "Company") is disappointed to note that Julie Dean, the Company's lead portfolio manager, is leaving Schroders.

Following discussions with Schroders, the Board has agreed that Schroders' Business Cycle Investment team should continue to manage the portfolio in accordance with the current investment policy and objective for the immediate future.

The Board will consult with its independent advisers and shareholders in relation to future investment management arrangements and a further announcement will be made in due course."

On 11 September 2014, the Company made the following announcement:

"Further to the announcement made on 8 September 2014 in relation to the decision of Julie Dean to leave Schroders, representatives of the Board of Schroder UK Growth Fund plc (the 'Company') have met with Schroders and are satisfied with the current management arrangements under which the Business Cycle Investment team will continue to run the Company's portfolio for the immediate future.

However, the Board believes that a full review of potential long-term management options is in shareholders' interests. The Board, in conjunction with its advisers, therefore intends to speak to a limited number of potential managers with the credentials and capacity to deliver superior returns through investment in UK companies. This review will be carried out over the next few weeks with the aim of announcing a decision on the future investment management arrangements of the Company as soon as practicable.

In the meantime, the Board has decided to remove all gearing from the Company.

A further announcement will be made in due course."

No other material events or transactions have taken place between 1 May 2014 and the date of publication of this Statement.

Company Statistics as at 31 July 2014

Net assets	£288.9 million
Net Asset Value per Ordinary share (cum income)	179.51p
Share price	169.25p
Discount (to ex income NAV)	5.05%
Number of portfolio holdings	59
Gearing	7.1%
Yield	3.2%

%Cumulative Performance to 31 July 2014

Performance over	3m	6m	1yr	3yr
Share Price (total return)	-3.4	-10.4	-1.0	43.4
Net Asset Value (total return)	-2.9	-4.4	-1.2	41.6
FTSE All-Share Index	-0.2	4.5	5.6	31.7

Source for all performance data: Morningstar

Portfolio Information as at 31 July 2014

Ten Largest Holdings

Stock Name	Sector Classification	Market value (£,000)	Percentage of Net Asset Value
GlaxoSmithKline	Healthcare	19,027	6.6
BP	Oil and Gas	17,495	6.1
Rio Tinto	Basic Materials	15,940	5.5
HSBC	Financials	14,858	5.1
Royal Dutch Shell	Oil and Gas	13,593	4.7
Melrose	Industrials	13,063	4.5
Sage	Technology	12,194	4.2
Rolls Royce	Industrials	10,624	3.7
Reed Elsevier	Consumer Services	10,565	3.7
Babcock	Industrials	9,827	3.4

Sector Allocation

Sector

Percentage of

Net Asset Value

Industrials	26.2
Consumer Services	23.5
Financials	17.8
Oil and Gas	12.1
Healthcare	8.2
Basic Materials	6.9
Technology	6.6
Consumer Goods	6.1
Other net liabilities	(7.4)

Changes to Share Capital during the quarter ended 31 July 2014

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 2014.

Company Information as at 31 July 2014