REG - Schroder Br.Opps.Tst - Proposed Material Change to Investment Policy

Schroder British Opportunities TrustAnnouncement

17/03/2025 07:00

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RNS Number : 8143A  Schroder British Opportunities Tst.  17 March 2025

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A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

FOR IMMEDIATE RELEASE

 

17 March 2025

 

Schroder British Opportunities Trust plc

 

("SBO" or the "Company")

 

Company Update and Proposed Material Change to Investment Policy

 

The Board of SBO is pleased to provide the following update, including a
proposed material change to the Company's Investment Policy.

 

Material Change to the Company's Investment Policy

 

Since IPO, the performance of the Company's portfolio has registered a net
asset value ("NAV") total return of 13.44((1))%. The Board recognises however
that since IPO, much of the positive performance of the Company's portfolio
has come from the private equity investments, which have delivered a return of
1.5x the original investment((2)). Whilst facing difficult market conditions
the public equity investments have detracted from the overall NAV performance,
and it is the view of both the Investment Manager and the Board, that the
Private Equity portion of the portfolio offers a better opportunity set in the
current environment. As such and following discussions with shareholders, the
Board is proposing to materially change the Company's Investment Policy such
that it is focused entirely on private equity investments (the "Proposed
Material Change").

 

As at 11(th) March 2025, the Company's NAV was £82.0 million((3)). The
portfolio was split approximately 23.5% and 70.0% in public equity and private
equity investments, respectively, and 6.5% held in cash. Should shareholders
vote to approve the Proposed Material Change, it is expected that the
Company's public equity investments will be transitioned to cash, cash
equivalent investments or other instruments as permitted by the Company's
investment policy, pending reinvestment into private equity investments. Tim
Creed and Peraveenan Sriharan will remain Co-Portfolio Managers, with
responsibility for the entire portfolio, following the Proposed Material
Change. They will be supported by, Chris Taylor, Head of Pan European Equities
who will oversee the transition of the existing public equity portfolio on
behalf of Schroders. Uzo Ekwue has stepped down as Co-Portfolio Manager.

 

The Proposed Material Change is subject to approval by the Financial Conduct
Authority and subsequent approval by shareholders. A further announcement will
be made in due course.

 

2028 Continuation Vote

 

As disclosed in the Company's IPO prospectus, unless alternative proposals are
put forward to and approved by Shareholders at an earlier date,  the
Company's articles require the Board to put forward, at a general meeting of
the Company to be held in the year 2028 but in any event no later than 31 May
2028, a resolution to place the Company into voluntary liquidation (the
"Winding-Up Resolution"). The Company's articles provide that voting on the
Winding-Up Resolution will be enhanced such that, provided any single vote is
cast in favour, the Winding-Up Resolution will be passed. As a result, the
Company is regarded as having a fixed life.

 

Contingent on approving the Proposed Material Change, the Board is proposing
to bring forward the Winding-Up Resolution, to the first quarter of 2027. In
line with the provisions in the articles, the Board will consult with
shareholders ahead of this vote. If the Proposed Material Change is accepted
by Shareholders, it is expected the Company will be fully deployed in private
equity investments by the end of 2026.

 

The Board believes that bringing forward the Winding-Up Resolution will
provide clarity on the future of the Company at the earliest opportunity,
whilst allowing the Investment Manager time to deploy funds from the public
equity investments portfolio in accordance with the revised proposed
investment policy focused solely on private equity investments.

 

Notes:

1)     Morningstar: 02/12/2020 to 12/03/2025. Private Equity Investments
valued at 31/12/2024

2)     Realised and unrealised returns.

3)     Private Equity investments included in NAV 11/03/2025 are valued as
per 31/12/2024 valuations.

 

Ends

 

The information contained within this announcement constitutes inside
information. The person responsible for arranging for the release of this
announcement on behalf of the Company is Katherine Fyfe of Schroders
Investment Management Limited.

 

Enquiries:

 

Schroder Investment Management Limited
                             020 7658 6000

Katherine Fyfe (Company Secretarial)

Charlotte Banks
(PR)

 

Peel Hunt LLP
(Broker)
020 7418 8900

Luke Simpson

Liz Yong

Huw Jeremy

 

 

LEI: 5493003UY8LIHFW6HM02

 

About Schroder British Opportunities Trust plc

 

SBO invests in a diversified portfolio of UK-focussed public and private
equity companies with long-term growth prospects.

 

Further information on the Company is available at www.schroders.com/sbo

 

 

 

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