Managers of Schroder UK Dynamic Smaller Companies leave to launch own business

Paul Marriage and John Warren, managers of the Schroder UK Dynamic Smaller Companies fund, announced today they will leave the firm in the fourth quarter of this year to launch their own boutique business.

They will continue to run the Schroder UK Dynamic Absolute Return fund through their new venture, but they will no longer look after Schroder UK Dynamic Smaller Companies. A new manager has not yet been announced for this fund.

In the interim, Chelsea has downgraded Schroder UK Dynamic Smaller Companies from a Buy to a Hold rating.

Darius McDermott, managing director of Chelsea Financial Services, commented:

"Overall, it looks like the process is being handled well by both Schroders and the leaving managers.

"However, the fact they will no longer manage the UK Dynamic Smaller Companies fund will be a bit of a blow for investors, as Paul and John have been at the helm for many years, both at Schroders and before that at Cazenove.

"Given that long period of stability, investors will now be looking for reassurance that the fund's strategy, which has significantly outperformed both its benchmark and its peers under Paul and John's tenure, will continue with minimal interruption.

"Schroders has an impressive pool of talent across its European and UK equities business, and strong analyst support teams who will hopefully help ensure some level of continuity for investors. We look forward to learning of the new fund manager promptly."