IN BRIEF: Schroder Income Growth underperforms benchmark in first half


Schroder Income Growth Fund PLC - UK-based investment company - Net asset value total return per share in half-year to February 28 turns to net loss of 0.5% versus a total return of 16% a year ago. Loss of 0.5% compares to 2.4% return on the FTSE All-Share Index. Net asset value per share drops to 307.08 pence from 316.59p six months earlier. Firm pays two interim dividends of 5.00p in the half year, unchanged from a year ago. Income grows by 49% to year ago.

‘The outlook for UK companies will continue to be heavily affected by the impact of high, and still rising, inflation as well as the impact of higher taxation for many households, with forecasts indicating that UK household incomes will be squeezed harder than at any point since the 1970s,’ says Chair Bridget Guerin.

Citing the conflict in Ukraine, Chair Guerin adds: ‘Global markets will continue to be heavily disrupted by elevated energy costs as well as increases in the costs of a swathe of key commodities’. A rising interest rate environment in the UK is an additional headwind to valuations across sectors of equity market, chair notes. Firm is monitoring its portfolio's ability to deliver a ‘a dividend which rises in line with inflation over the medium-term,’ she explains.

Current stock price: 302.21 pence, up 1.2% on Friday

12-month change: down 3.1%

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