EquitiesSep 11 2014

Update: Schroders’ UK Growth board to hold beauty parade

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The board of the Schroders’ UK Growth trust will consider other asset managers to run the mandate after the departure of Julie Dean earlier this week.

After Ms Dean’s departure earlier this week the trust was taken over by Schroders’ business cycle investment team.

The board said it was happy with this arrangement in the “immediate future” but believed a “full review” was necessary.

“The board believes that a full review of potential long-term management options is in shareholders’ interests.”

One major shareholder, David Coombs, head of multi-asset at Rathbone Unit Trust Management, welcomed the decesion.

“We pointed out to the chairman when Richard Buxton left that if Julie Dean had not joined Schroders we would expect all options to be considered. As there is not an obvious replacement it makes sense to look around,” he said.

Mr Coombs said he would expect the new manager to be one which is recognised by the market so that the discount does not widen, has a high conviction growth strategy, and considers all companies.

The board said: “In conjunction with its advisers, the board intends to speak to a limited number of potential managers with the credentials and capacity to deliver superior returns through investment in UK companies.

“This review will be carried out over the next few weeks with the aim of announcing a decision on the future investment management arrangements of the company as soon as practicable.”

Schroders said it would put Matt Hudson forward as a potential manager. Mr Hudson took control of the trust on the back of Ms Dean’s departure earlier this week and will continue to run it until a decision is made.

The board added it had removed all gearing from the trust until a decision has been reached.