Investments  

Schroders trust exits FTSE 250 following review

The £453m Schroder Asia Pacific investment trust is to exit the FTSE 250 index as part of a shake-up of members of the UK’s main mid-cap and large cap indices.

The trust, run by Asian equities manager Matthew Dobbs, has seen its share price fall by 1.8 per cent this year and is trading at a discount of nearly 10 per cent to the value of its portfolio of investments. However, in the longer run Mr Dobbs has led the trust to post a 159 per cent share price return in five years.

Elsewhere, Royal Mail has been promoted to the FTSE 100 index just weeks after its flotation on the stock exchange. It is currently valued at £5.9bn by the market. Alongside Royal Mail, construction equipment specialist Ashtead has also been added to the FTSE 100, with resources company Vedanta and chemicals manufacturer Croda dropping down to the FTSE 250.

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As well as the Schroders trust, six other firms have dropped out of the FTSE 250 including Carpetright, Chemring Group, Dialight, Greggs, Hochschild Mining and John Menzies Group. Replacing them are Carphone Warehouse, Foxtons, Grafton Group, JD Sports, Merlin Entertainments and Riverstone Energy.

The changes to both indices will mean tracker funds and exchange traded funds linked to the FTSE 100 and FTSE 250 index will need to rebalance their portfolios when the changes come into effect on December 23.