Last checked at 
(Alliance News) - Schroder UK Mid Cap Fund PLC on Friday said it outperformed its benchmark in its most recently ended financial year despite a decline in net asset value.
The investment company reported NAV per share of 633.51 pence for the year to the end of September, down from 640.80p reported the year before.
The fund's produced an NAV total return of 1.8% and share price total return of 4.0%. In comparison, the company's benchmark, the FTSE 250 ex-Investment Cos Index, delivered a total return of 0.2%.
The trust said it outperformed the benchmark due to its stock selection and also benefited from the UK general election victory for the Conservative Party.
"The outperformance had a very domestic flavour, with three of the top five contributors (homewares retailer Dunelm, pet supplies and veterinary services company Pets At Home and multi-utility supplier Telecom Plus) deriving all of their profits from the UK. UK households continue to increase their spend in certain areas of the market, for example on homewares and on their pets, to the benefit of Dunelm and Pets At Home respectively," the company said.
Schroder UK Mid Cap Fund proposed a total dividend for the year of 18.5 pence a share, up 16% year-on-year.
"Investors in domestic stocks have responded very positively to the recent decisive Conservative victory in the UK general election, with this being reflected in both the share prices of companies in which the company invests, and the company's share price," said Chairman Eric Sanderson.
"We hope that this new found optimism about domestic stocks will continue, but our confidence in the future remains primarily in the quality of the holdings. Their ability to keep growing cannot be completely independent of the broader issues and potentially more difficult economic conditions worldwide next year, but if our manager can keep on choosing the right companies the growth in our investment income will continue to be reflected in the share price," Sanderson added.
The company also said it has appointed Wendy Colquhoun as an independent non-executive director from January 1. Colquhoun currently is a non-executive director of Henderson Opportunities Trust PLC.
The stock was up 0.3% at 646.00 pence on Friday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.