Julie Dean, manager of IC tips Schroder UK Opportunities Fund (GB0031092728) and Schroder UK Growth Fund (SDU), is to leave Schroders and management of these funds. She follows the high-profile departure from Schroders of Richard Buxton last year, who ran Schroder UK Growth before Ms Dean took over in July 2013.
Schroder UK Growth's board has agreed that Schroders' Business Cycle Investment team led by Matt Hudson should continue to manage the trust in accordance with its current investment policy for the immediate future, but will make a further announcement on investment management arrangements.
Mr Hudson will also take over management of Schroder UK Opportunities as well as an offshore fund Ms Dean runs, and follow the same investment objective. Mr Hudson has managed Schroder UK Alpha Income (GB00B073JG03) since May 2005 over which time it has made 125 per cent total return compared with 103 per cent for the FTSE All-Share, according to Hargreaves Lansdown.
Schroder UK Alpha Income is one of the best-performing UK equity income funds over three and five years, during which time it is also well ahead of its benchmark, the FTSE All-Share, but it has fallen into the fourth quartile over one year and underperformed its benchmark.
"Matt Hudson is a manager we hold in high regard, having built a strong record in the UK equity income sector, so we would caution against a knee-jerk reaction," said Jason Hollands, managing director at wealth manager Bestinvest.
Ms Dean made strong returns with Schroder UK Opportunities which she had run since December 2002, over which time the fund returned 314 per cent compared with 190 per cent for the FTSE All-Share. The fund, which was known as Cazenove UK Opportunities until Schroders took that company over last year, is one of the best in the UK All Companies sector over five years, and top quartile over three years, over which periods it is also well ahead of the FTSE All-Share. But it fell into the fourth quartile over one year and underperformed its benchmark index.
Read our tip on Schroder UK Opportunities
Read our interview with Julie Dean
Read our tip on Schroder UK Growth
Meanwhile, Charles Stanley has announced the sale of the FP Matterley Undervalued Assets Fund (GB00B3BSKG91) to Miton Group, meaning the fund will no longer be managed by Henry Dixon. Since launch in August 2008, FP Matterley Undervalued Assets delivered 122 per cent in contrast to the FTSE All-Share which has returned 62 per cent over the past six years. It is one of the top performers in its sector over one, three and five years.
However, management of the fund will be assumed by Miton Group managers George Godber, who co-managed FP Matterley Undervalued Assets while working at Charles Stanley, and Georgina Hamilton, who was a senior analyst on the fund. They also manage CF Miton UK Value Opportunities Fund (GB00B8KV0M06) which only launched in March 2013, but is the sixth best performer out of more than 200 funds in the UK All Companies sector over one year.
Last week asset manager Threadneedle announced the departure of its head of UK equities Simon Brazier. Mr Brazier was lead manager of Threadneedle UK Fund (GB0001529782) and Threadneedle UK Select Trust (UKT). Chris Kinder will become lead manager of the Threadneedle UK Fund and in the immediate future Threadneedle UK Select; however, that trust's board is discussing successor arrangements with Threadneedle.
Mr Kinder has run Threadneedle UK Extended Alpha Fund (GB00B02QB917) since November 2010, and the fund is in the first quartile of the IMA UK All Companies sector over one and three years.
Mr Brazier is joining Investec Asset Management in November with a number of colleagues from Threadneedle: fund manager Blake Hutchins, analysts Ben Needham and Anna Farmbrough, and product specialist Neil Finlay. Mr Brazier will run UK equity funds and Investec will launch a UK Equity Income fund for Mr Hutchins.
Read our interview with Simon Brazier
| Trust | Discount to NAV (%) | 1-year cumulative share price return (%) | 3-year cumulative share price return (%) | 5-year cumulative share price return (%) | Ongoing charge (%) |
| Schroder UK Growth ord | 8.87 | -0.95 | 55.66 | 94.25 | 0.47 |
| Threadneedle UK Select Trust ord | 6.02 | 5.12 | 56.15 | 62.83 | 1.86* |
| FTSE All Share TR GBP | 8.49 | 47.33 | 71.21 | ||
| AIC UK All Companies sector average | 18.59 | 47.07 | 74.24 |
Source: Morningstar
Performance data as at 7 September 2014
*Includes a performance fee
| Fund | 1-year cumulative total return (%) | 3-year cumulative total return (%) | 5-year cumulative total return (%) | Ongoing charge |
| Schroder UK Opportunities A Acc | -0.76 | 78.52 | 124.69 | 1.66 |
| FP Matterley Undervalued Assets Retl Acc | 20.01 | 81.76 | 122.69 | 1.37 |
| Threadneedle UK Fund Retail | 9.08 | 58.41 | 85.52 | 1.68 |
| IMA UK All Companies sector average | 8.51 | 53.45 | 78.42 | |
| FTSE All Share TR GBP | 8.49 | 47.33 | 71.21 | |
| Schroder UK Alpha Income A Inc | 5.88 | 67.36 | 94.58 | 1.66 |
| IMA UK Equity Income sector average | 9.53 | 54.19 | 78.49 |
Source: Morningstar
Performance data as at 7 September 2014
