Senior management at Schroders are shocked at the decision of UK equity fund manager Julie Dean to quit the firm after just one year, according to sources.
Her resignation follows recent meetings at which she reassured investors and Schroders’ senior management that she was happy with her position at the firm, according to sources.
It has left the firm’s top brass “disappointed” and “surprised”.
Ms Dean joined the firm a year ago when it acquired her former firm Cazenove Capital, and was one of the leading proponents of the company’s successful ‘business cycle investing’ philosophy.
Her franchise was a factor that supported Schroders’ decision to buy Cazenove, a deal which came shortly the departure of UK equities manager Richard Buxton.
The source added that the resignation would see Ms Dean fail to collect substantial rewards under lock-in arrangements.
The UK Opportunities fund initially rose by roughly £1bn to £2.8bn after Schroders took it on last July, although it has shrunk more recently after a challenging 2014 for the manager in performance terms.
Data from FE Analytics shows the fund is solidly top quartile in three-, five- and 10-year periods but is in the bottom quartile in the past year having lost 0.7 per cent while the FTSE All Share index has risen 8.7 per cent.
The fund has also lost 5.5 per cent in 2014 compared to an average rise of 1.9 per cent by funds in its IMA UK All Companies peer group.
The fund is expected to retain the business cycle investment process under replacement manager Matt Hudson.
