Schroder British Opportunities NAV declines by 3.4% as discount continues to freefall

Private equity holdings up 6.4%

A deterioration in sentiment towards both UK small-cap stocks and private equity have caused the Schroder British Opportunities trust to continue its freefall.

During the half year ended 30 September, the £75m trust reported a NAV decrease of 3.4% and a share price decline of 14.3%. The company's discount was 28.4% at the end of the reported period, but it has widened further at the time of writing, nearing 33%, according to the Association of Investment Companies. The NAV of SBO's quoted holdings dropped by 9.%, while unquoted holdings were up by 6.4%, providing a downside hedge during a challenging period in the UK's public equity markets, particularly for small and mid-cap stocks.  UK SMID caps performed poorly over the period, with th...