Investment Management Arrangements

RNS Number : 8019D

Schroder UK Growth Fund PLC

02 May 2013

 

2 May 2013

Investment Management Arrangements

Further to its previous announcements, the Board of Schroder UK Growth Fund plc ('SDU' or the 'Company') has decided to retain Schroders as its investment manager when Richard Buxton, the Company's current portfolio manager, leaves Schroders to join Old Mutual Global Investors in June 2013.

Julie Dean, who will join Schroders in July 2013 as part of the recommended acquisition of Cazenove Capital Holdings Limited by Schroders (the 'Recommended Acquisition') will become the Company's lead portfolio manager.  Julie is the Citywire AAA-rated manager of the Cazenove UK Opportunities Fund and the Cazenove UK Equity Fund.  The Cazenove UK Opportunities Fund has been ranked in the top quartile of its UK Growth peer group over the past 5 years and has also outperformed its benchmark, the FTSE All Share index, over the same period (source - Lipper: B Acc Class, mid to mid at 31 March 2013, net income reinvested).

The Board of SDU was impressed with Julie's consistent performance and pragmatic approach to investment, which combines earnings-based security selection with a top-down business cycle approach.  Julie avoids style or size bias within the portfolios she currently manages and the same approach will be taken in relation to the Company's portfolio.

Investment management fee

In connection with its retention, Schroders has agreed to reduce the management fee charged to the Company.  With effect from 1 July 2013, this will be 0.60% of the Company's net assets less current liabilities and, from that date, the Company will also no longer be charged a separate secretarial fee. 

Transition arrangements

It is expected that, subject to shareholder and other regulatory approvals, the Recommended Acquisition will become effective on 2 July 2013 and from that date, Julie Dean will assume portfolio management responsibilities for SDU.

Schroders has agreed to waive its management fee for a period of 6 months, commencing on 1 July 2013, as a contribution to portfolio transition costs.

Enquiries:

Alan Clifton                                          Jane Lewis

Chairman                                            Winterflood Investment Trusts

Schroder UK Growth                          020 3100 0295

07712 137 120

 

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