REG - Schroder UK Mid - Strategic Initiatives

Schroder UK Mid Cap FundAnnouncement

26/03/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250326:nRSZ1075Ca&default-theme=true

RNS Number : 1075C  Schroder UK Mid Cap Fund PLC  26 March 2025

26 March 2025

This announcement contains information that is inside information for the
purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as
amended (the Market Abuse Regulation).

 

Schroder UK Mid Cap Fund plc

Strategic Initiatives

Management Fee Reduction, Continuation Vote and Buyback Policy

 

The Board of Schroder UK Mid Cap Fund plc (the "Company") is pleased to
announce strategic initiatives that are designed to further strengthen the
Company's investment proposition and deliver value for all of the Company's
shareholders (the "Shareholders"). Whilst the Board believes that for the
Company's shares to trade closer to NAV over the longer term, the primary
focus must remain on consistent, strong investment performance, combined with
effective marketing and promotion of the Company, the Board intends to further
support Shareholders through the following initiatives.

Management Fee Reduction

The Board has agreed a management fee reduction with Schroder Unit Trusts
Limited. The current management fees are (1) 0.65% per annum on net assets
plus short term borrowings, less cash up to £250 million and; (2) 0.60% per
annum of any such amount in excess of £250 million. With effect from 1 April
2025, the reduced management fee will be calculated based on the lower of (1)
0.60% per annum of market capitalisation; and (2) the current net asset
value-based fee arrangement.

Continuation Vote

The Board is introducing a continuation vote to be proposed at the AGM to be
held in 2028, and, if passed, every three years thereafter to ensure that the
Company remains relevant to its Shareholders and in-line with best corporate
governance practice (the "Continuation Vote").

The Continuation Vote will be proposed as an ordinary resolution requiring a
simple majority of those voting to be passed. If any Continuation Vote is not
passed, the Directors will put forward proposals for the reconstruction or
winding-up of the Company to Shareholders for their approval within six months
following the date on which the Continuation Vote is not passed.

Buyback Policy

The Board intends to use its authority to buy back shares more actively in
order to inhibit a wide discount to NAV from developing in the Company's
shares in the future. The Company's authority to repurchase up to 14.99% of
its issued share capital (being 5,183,720 ordinary shares) was refreshed at
the AGM held on 24 February 2025.

Harry Morley, Chair of Schroder UK Mid Cap Fund plc, commented:

"I have spoken widely to our Shareholders and appreciate the significant
support indicated both for our differentiated proposition and our closed-ended
investment trust structure. We believe the strategic measures announced today
will further strengthen the investment proposition of our Company for the
benefit of current and prospective Shareholders. We remain confident in the
continuing attractions of UK mid cap equities and believe that the Company is
well positioned to capitalise in the future growth potential of the asset
class."

 

For further information please contact:

Company

Harry Morley, Chairman

via Investec Bank plc (details below)

 

Investec Bank plc, Corporate Finance Adviser

Lucy Lewis / Tom Skinner

+44 (0)20 7597 4000

 

Panmure Liberum Limited, Corporate Broker

Michael Janes

+44 (0)20 3100 2000

 

Burson Buchanan

Henry Wilson / Helen Tarbet / Jude Stokes

SCP@buchanancomms.co.uk (mailto:SCP@buchanancomms.co.uk)

+44 (0)20 7466 5000

 

Company Secretary (Schroder Investment Management Limited)

Phoebe Merrell / Katherine Fyfe

+44 (0)20 7658 6000

Schroders PR

Charlotte Banks / Kirsty Preston

Charlotte.Banks@Schroders.com (mailto:Charlotte.Banks@Schroders.com) /
Kirsty.Preston@Schroders.com (mailto:Kirsty.Preston@Schroders.com)

+44 (0) 2076 589063 / +44 (0) 2076 581961

 

Legal Entity Identifier: 549300SOEWCYZTK2SP87

The person responsible for arranging for the release of this announcement on
behalf of Schroder UK Mid Cap Fund plc is Katherine Fyfe of Schroder
Investment Management Limited, the Company Secretary.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  STRBSGDXLGDDGUU