Schroder UK Growth Fund PLC Investment Management Arrangements (7479V)
October 30 2014 - 10:28AM
UK Regulatory
TIDMSDU
RNS Number : 7479V
Schroder UK Growth Fund PLC
30 October 2014
30 October 2014
Schroder UK Growth Fund plc
Investment Management Arrangements
The Board of Schroder UK Growth Fund plc (the "Company")
announced on 11 September 2014 that, following the departure of
Julie Dean from Schroders, it was conducting a full review of its
investment management arrangements.
The Board is pleased to announce that, following the conclusion
of this review, the Company has decided to retain Schroder Unit
Trusts Limited as its manager.
Philip Matthews will assume the responsibility of lead portfolio
manager with immediate effect. Philip has managed the GBP1.5bn
Schroder UK Alpha Plus Fund since taking over from Richard Buxton
in October 2013. Prior to joining Schroders in 2013, he ran the
Jupiter Growth & Income Fund for seven years, where his
performance exceeded the return on the FTSE All-Share benchmark
index, and was placed in the top quartile over one, three, five and
seven year horizons. (Source: Morningstar, bid to bid, net of fees
and expenses, net income reinvested, periods to 30 April 2013).
The Board was very impressed by Philip's disciplined investment
process which focuses on long term earnings and valuations in a
rigorous and objective way enabling him to generate consistent
outperformance for investors. The Board also recognises the
strength and depth of the Schroder UK equities investment team that
works alongside Philip; and the experience of the investment trust
team, with which it has worked for many years, that supports and
promotes the Company.
Management Review Process
The Board's decision follows a comprehensive and wide ranging
review of investment management options over the last few weeks. A
substantial number of managers indicated an interest in managing
the Company's portfolio and the Board acknowledges and appreciates
the work done by the various management groups involved in
preparing and submitting detailed proposals. In this review process
the Board has been guided by the Company's major shareholders' wish
to maintain the Company's current investment objective and mandate.
The Board was also mindful of seeking to maintain the stability of
the Company's share register and rating throughout and following
this review.
The Board narrowed down the proposals through several rounds of
written submissions and extensive due diligence, culminating in
final presentations by a short-list of managers. In assessing the
options, the Board considered a number of factors, including
management track record, risk management, investment process, depth
of investment resource, administration, shareholder relations and
marketing capabilities.
While a number of highly credible options were put forward, the
Board unanimously concluded that Philip Matthews and Schroders
demonstrated the most compelling combination of a strong long-term
track record, a well-resourced management team in the UK equity
sector and a commitment and capability to supporting the Company
both in marketing and administration.
Investment management fee
In connection with its retention, Schroders has agreed to reduce
the management fee charged to the Company. With effect from 1
November 2014, the annual management fee will be 0.5% of the
Company's net assets, reduced from 0.6%.
Transitional arrangements
Philip will assume the portfolio management responsibilities
with immediate effect and the Company's assets will be managed in
line with its existing investment objective and policy.
Schroders have agreed to bear all the costs associated with the
change of lead manager by way of a management fee waiver.
Alan Clifton, Chairman commented: "The decision to remain with
Schroders reflects the fact that they put forward a highly rated
manager in Philip Matthews with an excellent and consistent
investment process and performance record and a world class support
team. We have also been impressed with Schroders' commitment
actively to promote the Company and their strong desire to retain
this mandate. This has been demonstrated by the proposed fee
reduction and the offer to pay for all the costs of transition to
ensure that this process will not have any adverse cost impact on
our shareholders. The Board and its advisers have worked to
minimise the period of uncertainty following Julie Dean's
departure, and is confident that the Company is now well positioned
to deliver strong performance for our investors."
Enquiries:
Schroder UK Growth Fund plc
Alan Clifton (Chairman) 07712 137 120
Winterflood Investment Trusts
Joe Winkley
Neil Langford 020 3100 0000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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