Canaccord Genuity puts ex-Buxton trust under review


Cannaccord Genuity has placed the £244.5m Schroder UK Growth investment trust ‘under review’ until it can meet the portfolio’s new manager.

The move follows the high-profile exit of Richard Buxton, who had managed the trust since 2002. Buxton has since been replaced by Julie Dean, who joined the asset manager after it bought Cazenove Capital Management.

Following the appointment, the board of the trust looked to change its investment approach to allow Dean to manage the portfolio in a similar way to her £1.8bn Cazenove UK Opportunities fund. 

Dean typically focuses on ‘mid cap’ stocks and tends to have a higher portfolio turnover than Buxton.

In its half year update, Canaccord Genuity says: “One of our risk-on recommendations, we are mindful of the change in risk profile but we would wait until meeting the manager before reviewing our recommendation.”

The trust achieved second quartile performance in the AIC UK Growth during 2011 and 2012 but is third quartile over the year to date.

Schroder UK Growth’s calendar year performance

  YTD 2012 2011 2010 2009
Schroder UK Growth 18.76% 28.80% -9.27% 22.68% 59.53%
18.61% 20.26% -11.06% 21.18% 49.20%
0.12% 7.10% 2.02% 1.23% 6.92%
  10 / 16 7 / 16 6 / 16 9 / 16 4 / 16
3 2 2 3 1

Source: FE Analytics