SCHRODER INCOME GROWTH PLC (LON:SCF)

Founded in 1995, Schroder Income Growth plc is a UK-based investment company with investment objective to deliver growing income in excess of the inflation rate and capital growth as a consequence of the rising income. The company focuses its investments in the outperforming UK equities that pay dividends that grow faster than the rate of inflation and has increased its dividend consistently for past 25 years. The company’s investment portfolio provides exposure of regular income to its investors. The company invests across a range of sectors that include Financials, Consumer Services, Healthcare, Basic Materials, Industrials, Oil and Gas and Utilities

The company’s shares are traded on the London Stock Exchange as LON: SCF.

To diversify its portfolio risk and generate high and attractive return the company follows its investment policy to invest principally in above-average yielding UK Equities and the company may also invest maximum of 20% of its portfolio in the equities listed on the recognised stock exchange outside the UK. It may also invest in equity related instrument such as convertible securities and maximum of 10% of its portfolio may be invested in bonds. Further, maximum of 20% of its total income may be generated by short-dated call options written on holdings in the portfolio. The company may also use put options consist of short term exchange traded instruments on major stock market indices of amount up to the value of its borrowings.  

The company’s board has appointed Schroder Unit Trust Limited as its investment manager. The manager invests across the equities that are fundamentally strong and that can help company to deliver strong and attractive future return.  Its investment strategy is based on the belief that stock markets are inefficient and it can exploit such inefficiencies. Investors who are seeking a potential higher income, have capability to take risk, willing to accept short-term losses for long term gains and can invest for three to five years or more may invest in the company’s portfolio.