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Schroders expects to name Buxton successor in weeks
Markets
by Emma Dunkley on Mar 15, 2013 at 15:16
Schroders has stressed Richard Buxton’s replacement on the UK Alpha Plus will be announced in weeks rather than months, although it emphasised there is no ‘immediate’ need to find a new manager.
The firm’s head of UK Intermediary Robin Stoakley spoke exclusively after Wealth Manager revealed Buxton and fellow UK equity manager Errol Francis, were defecting to Old Mutual Global Investors.
The pressure is certainly on for Schroders to find a replacement, with Citywire A-rated Buxton one of the most popular UK equity managers in the country.
In the three years to 14 March he has returned 39.1% on the £3.4 billion Alpha Plus fund versus a 29% rise in the benchmark, with maximum drawdown of 15.4%.
In total he runs more than £4 billion worth of assets for Schroders, including the £263 million Schroder UK Growth investment trust. He also co-manages the £338 million Aviva Investors UK Special Situations fund.
This pressure to find a top draw replacement for Buxton was heightened by news that Old Mutual Global Investors plans to launch its own version of his UK Alpha Plus fund.
Stoakley told Wealth Manager that the firm has already started the recruitment process, while stressing the managers’ style and low-turnover means there is no change to the funds in the short-term.
‘The most significant point to make is Richard and Errol will continue to manage the funds for the next three months until they leave in mid-June,' Stoakley said.
‘We believe that’s right thing for the funds. Their management style is very low-turnover and so we’re confident the funds will continue to reflect Richard’s best ideas. So in the short-term, we are very satisfied the funds are run in the best way they can be.’
He added: ‘We obviously have to announce a long-term replacement. Peter Harrison who recently joined us from RWC will decide exactly what style that replacement should be.
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