InvestmentsJul 26 2016

Schroders’ Income Maximiser guru See to exit

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Schroders’ Income Maximiser guru See to exit

Schroder Income Maximiser manager Thomas See is to leave the company, Investment Adviser can reveal, as the asset manager merges its structured fund management team with another part of its business.

Mr See’s structured fund management division is to be combined with Schroders’ portfolio solutions arm - a largely institutional business that was hived off from its multi-asset team last month.

Schroders said there would be no changes to the investment process used by the Income Maximiser range, known for the manager’s strategy of using derivative overlays on underlying holdings to increase funds’ income payments.

The £950m Income Maximiser fund’s underlying portfolio will continue to be run by Schroder Income managers Kevin Murphy and Nick Kirrage, with the merged team responsible for the overlay strategies.

There will also be no changes to the processes used to run the European, Asian and Global Dividend Maximiser vehicles - which have close to $5.5bn (£4.2bn) in combined assets under management.

The combined teams will now report to head of risk managed investments and structuring Mike Hodgson.

Mr See first joined Schroders’ investment banking unit in 1988, working there until it was sold in 2000. He rejoined the firm in 2005 to launch the structured funds business.

A spokesperson for the fund house said: “The role of head of structured fund management is no longer required and Thomas See will be leaving Schroders.”

“Mike Hodgson will take responsibility for the team and the funds under their management. The investment philosophy, process and management of the Maximiser funds will not change under Mike’s leadership.”

Income Maximiser has underperformed in recent years, returning 49.3 per cent over the past half decade compared with 51.3 per cent from the IA UK Equity Income sector, according to FE Analytics. One and three-year numbers indicate more material underperformance.