Schroder UK Smaller Companies Z

A small cap fund investing across the FTSE Small Cap universe (excl. ITs).

  • 174.80p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 191.40p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.92%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.00%

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 27 January 2022, fund commentary last updated 17 July 2014

The fund’s objective is to achieve capital growth by investing in smaller companies listed in the UK. It aims to outperform the FTSE Small Cap (ex Investment Trusts) index by 3% gross per annum in the long run. Detailed fundamental research is undertaken where the key factors sought are: quality management, growth potential, cash generation and balance sheet strength. Generally the fund managers invest in growing companies with a unique product or service for which demand is strong and which have pricing power.

Fund summary

Sector UK Smaller Companies
Structure UNIT TRUST
Launched November, 2011
Size £541m
Yield 0.00%
Charging basis Income
Dividends paid 31 Jul


Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.92%


Proportion (%)

  • {{chartDataItem.text}}


Proportion (%)

  • {{chartDataItem.text}}


Proportion (%)

  • {{chartDataItem.text}}

Investment process

The fund's objective is capital growth through investment in UK smaller companies, focusing on the FTSE Small Cap (ex IT) universe, the FTSE Fledgling Index and AIM, although up to 20% of the fund may be invested outside these universes. The investment process is based on a common sense investment philosophy, quantitative screening of the stock universe, fundamental analysis of company accounts and a subjective evaluation of management and prospects. The primary influence on the portfolio is bottom up stock selection, with individual stock weightings reflecting a combination of investment conviction and assessment of the stock’s likely volatility. Ongoing fundamental research generates an “investment triangle”, allocating investment opportunities into three categories. Generally the fund managers invest in growing companies with a unique product or service for which demand is strong and which have pricing power, while avoiding companies operating in industries where supply exceeds demand and the pricing can deteriorate. The managers do not have a pre-determined style bias, although the fund tends to outperform in falling markets.

Manager research

Average monthly relative returns

  • 17/18 0.57%
  • 18/19 0.22%
  • 19/20 -0.11%
  • 20/21 0.28%
  • 21/22 -0.14%

Bestinvest MRI

  • 3 years 0.01%
  • 5 years 0.17%
  • Career 0.30%
  • 3 years 63.30%
  • 5 years 89.30%
  • Career 99.50%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Andy Brough

Born in 1960, Brough holds an Economics degree from Manchester University and qualified as a chartered accountant with Price Waterhouse. He joined Schroders in 1987 as a UK equity fund manager, initially as an analyst covering the Brewery, Publishing and Printing sectors. He has managed the Schroder Institutional UK Smaller Cos. fund since 1989, the retail version since 1995, and has been co-head of Schroders' pan European Small and Mid Cap team since 2002. The bulk of his portfolios are made up of stocks held for the long-term, although tactical trading is undertaken in stocks of companies which include those that might be experiencing management change, withdrawal of industry overcapacity or a cyclical upturn.

Track record

Andy Brough has 8.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.3%. During the worst period of relative performance (from April 2020 - March 2021) there was a decline of 7% relative to the index. The worst absolute loss has been 35%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance

Absolute -35.00% (December 2019 - March 2020)
Relative -7.00% (April 2020 - March 2021)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.


Proportion (%)

  • {{chartDataItem.text}}


Proportion (%)

  • {{chartDataItem.text}}


Proportion (%)

  • {{chartDataItem.text}}

Top 10 holdings

Data accurate as at 30 November 2021

5.06% Tremor Intl Ltd
2.62% Kistos Plc
2.45% Ncc Group
2.44% Vitec Group Plc (The)
2.42% Cohort Plc
2.36% Mj Gleeson Plc
2.32% Aptitude Software Group Plc
2.26% Globaldata Plc
1.92% Rm Plc
1.86% Xaar
Source: Trustnet

Sector breakdown

Consumer Discretionary 28.00%
Industrials 27.00%
Technology 16.00%
Financials 6.00%
Energy 6.00%
Health Care 5.00%
Real Estate 4.00%
Basic Materials 4.00%
Money Market 2.00%
Consumer Staples 2.00%


Typically 80 – 120 stocks. Turnover is typically 25%.


Sector weightings must be within +/- 10% of the index. Individual stock positions are limited to +/-3% versus the index. Tracking error to be within 4% – 8%. Max 10% in securities of a single issuer.

Key Investor Information - Income


Key Investor Information - Accumulation